Molina Healthcare reported second quarter 2026 adjusted earnings per share of $1.51, beating the analyst consensus estimate of $1.39. The company increased its full year 2026 adjusted earnings guidance to at least $5.25 per diluted share, reflecting solid performance in its Medicaid and Medicare segments. Total revenue for the quarter was $10.874 billion, a decrease from $11.427 billion in the prior year, while GAAP net income fell to $60 million from $255 million.

Financial Performance

The following table details Molina Healthcare's performance against analyst estimates and compares the current quarter to the prior year.

The decline in earnings per share was significant, dropping from $5.48 in the same period last year to $1.51 this quarter. Sales also saw a reduction, moving from $11.427 billion to $10.874 billion over the same timeframe.

Operational Metrics

The Medical Care Ratio (MCR) for the second quarter of 2026 was 92.2%, an increase from 90.4% in the prior year. The consolidated G&A ratio was 6.7%, compared to 6.2% in the prior year. As of June 30, 2026, the company served approximately 4.9 million members.

Outlook

Management raised its full year 2026 GAAP earnings guidance to at least $2.15 per diluted share and its full year 2026 adjusted earnings to at least $5.25 per diluted share. The increase to earnings guidance reflects first half performance in Medicaid. Based on developing medical cost trends, a $1.50 increase in earnings per share in Medicare is offset by a $1.50 decrease related to Marketplace.

Molina Healthcare has received upward revisions to its price targets from three major financial institutions, reflecting a revised outlook on the company's stock performance. RBC Capital analyst Ben Hendrix maintained a Sector Perform rating while increasing the target to $248 from $216. Wells Fargo analyst Stephen Baxter kept an Equal-Weight rating and lifted the target to $235 from $159. Additionally, TD Cowen analyst Ryan Langston maintained a Hold rating and raised the price target to $230 from $163.

These adjustments indicate a neutral stance on the stock's potential relative to the broader sector, despite the higher valuation projections. Molina Healthcare is listed on the NYSE under the ticker MOH.

The revisions from RBC Capital, Wells Fargo, and TD Cowen highlight updated expectations for the healthcare provider's financial trajectory.