Molina Healthcare (MOH) investor relations material

Executive summary

• Q3 adjusted diluted EPS was $0.89 and GAAP diluted EPS was $0.73; premium revenue was $10.457B, down 4% YoY, and consolidated MCR was 92.9%.

• Membership was 4.862 million at quarter-end, down 14% YoY, mainly reflecting Medicaid contraction and Marketplace strategy changes.

• FY2026 adjusted EPS guidance of at least $5.25 was reaffirmed; preliminary 2027 EPS building blocks exceed $9.50 before legacy Medicaid or Medicare MCR improvement.

Financial highlights

• Q3 total revenue was $11.082B versus $11.477B YoY; operating income was $106M versus $137M, and GAAP net income was $38M versus $79M.

• Q3 adjusted net income was $46M versus $97M YoY; nine-month net income was $112M versus $632M, and adjusted net income was $243M versus $724M.

• Nine-month operating income was $334M versus $943M; higher MCR, lower premium revenue and a $93M MAPD impairment contributed to the decline.

• Q3 investment income was $102M versus $108M YoY; nine-month investment income was $301M versus $322M, reflecting lower interest rates and yields.

Outlook and guidance

• FY2026 guidance remains ~$42B premium revenue, at least $2.38 GAAP diluted EPS and at least $5.25 adjusted diluted EPS; it includes expected Q4 losses of $1.50 per share from Florida Medicaid and $1.00 from traditional MAPD.

• FY2026 rate and medical-cost trend outlooks each rose 50 bps, to 4.5% and 5.5%; Medicaid MCR guidance remains 92.9%.

• Preliminary 2027 premium revenue is at least $45B, versus the prior $46.5B outlook; delayed Georgia and Texas awards defer $1.3B of premium.

• 2027 rates are expected to increase ~6%; medical-cost trend is projected at 5.5%–6%, including 50 bps of conservatism.

• Known 2027 EPS building blocks exceed $9.50, including ~$4 per share of embedded earnings expected to be realized in 2027, excluding legacy business margin recovery.