--- title: "Molina Healthcare Stung By Membership Decline, Stocks Sinks 12%" type: "News" locale: "en" url: "https://longbridge.com/en/news/293651313.md" description: "Molina Healthcare shares fell 12% despite Q2 earnings of $1.51 per share beating estimates. The decline was driven by a 6% drop in premium revenue and membership falling to 4.926 million. Net income plummeted to $60 million due to lower membership and a higher medical care ratio. However, the company raised its full-year adjusted earnings guidance to at least $5.25 per share." datetime: "2026-07-23T17:28:39.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/293651313.md) - [en](https://longbridge.com/en/news/293651313.md) - [zh-HK](https://longbridge.com/zh-HK/news/293651313.md) --- # Molina Healthcare Stung By Membership Decline, Stocks Sinks 12% **Molina Healthcare Inc.** (NYSE:MOH) shares fell Thursday after the health insurer reported lower second-quarter premium revenue despite topping Wall Street estimates for earnings and revenue. ## Earnings Beat As Premium Revenue Declines Adjusted earnings were $1.51 per share, down 72.4% from $5.48 a year earlier but above the analyst consensus estimate of $1.39. Revenue fell 4.8% year over year to $10.87 billion, topping expectations of $10.79 billion, according to Benzinga Pro. Premium revenue declined 6% year over year to approximately $10.2 billion, reflecting lower membership that was partially offset by rate updates. Net income fell sharply to $60 million, or $1.19 per share, from $255 million, or $4.75 per share, a year earlier, as lower premium revenue and a higher medical care ratio weighed on profitability. ## Membership Falls Across Key Segments Total membership declined to 4.926 million in the second quarter from 5.49 million at the end of 2025 and 5.746 million a year earlier. Medicaid membership fell to 4.418 million from 4.774 million a year earlier. The consolidated medical care ratio (MCR) increased to 92.2% from 90.4% a year earlier, an increase of 180 basis points. Medicaid MCR was 92.7%, in line with the company’s expectations, supported by rate updates and stable medical cost trends. Medicare MCR was 90.7%, better than expected, reflecting lower medical costs and pricing changes implemented for 2026. Marketplace MCR rose to 88.9%, exceeding the company’s expectations due to prior-year risk adjustment and program integrity initiatives, as well as an unfavorable member acuity mix in the current year. **Read Also: Obamacare Premiums Could Jump 14% in 2027 As Insurers Warn Rising Medical Costs are Driving Rates Higher** ## Guidance Raised Molina reaffirmed its fiscal 2026 premium revenue guidance of approximately $42 billion. The company raised its full-year GAAP earnings outlook to at least $2.15 per share from at least $1.90 previously. That remains below the Wall Street consensus estimate of $2.60. Adjusted earnings guidance increased to at least $5.25 per share from at least $5.00 previously, ahead of the analyst consensus estimate of $5.15. The higher earnings outlook reflects stronger first-half Medicaid performance. Molina said a $1.50 per-share improvement in Medicare, driven by developing medical cost trends, is expected to be offset by a $1.50 per-share reduction related to its Marketplace business. Excluding the Marketplace revision, the company said full-year adjusted earnings guidance would have been $6.75 per share. The outlook also includes a projected $1.50 per-share loss from the implementation of a new Florida Medicaid contract in the fourth quarter and a $1.00 per-share loss tied to the company’s traditional Medicare Advantage Prescription Drug plan, which it previously announced it will exit in 2027. Following Molina’s update, shares of **Centene Corp.** (NYSE:CNC) also traded lower. In June, Centene said it would offer voluntary buyouts to most employees as it seeks to reduce costs after a significant decline in health plan membership. **MOH Price Action:** Molina Healthcare shares were down 12.69% at $193.60 at the time of publication on Thursday, according to Benzinga Pro data. _Image via Shutterstock_ **Read Also: Paramount Skydance Wins EU Approval for Warner Bros. 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