MOH

A month has gone by since the last earnings report for Humana (HUM). Shares have added about 7.1% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Humana due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Humana Inc. before we dive into how investors and analysts have reacted as of late. Humana Q2 Earnings Beat Estimates on Medical Membership Growth Humana reported second-quarter 2026 adjusted earnings of $7.61 per share, which beat the Zacks Consensus Estimate by 22.4%. The bottom line rose 21.4% year over year. Adjusted revenues improved 26.2% year over year to $40.9 billion. The top line surpassed the consensus mark by 0.6%. The strong quarterly results benefited on the back of premium gains and a robust performance from the CenterWell segment, which saw a revenue jump supported by its primary care business. A rise in overall medical membership also contributed to the upside. However, the upside was partly offset by escalating operating expenses and a deteriorating benefit ratio. Humana’s premiums totaled $38.8 billion, which advanced 26.4% year over year, and surpassed the Zacks Consensus Estimate of $38.6 billion and our estimate of $38.1 billion. Services revenues rose 27.1% year over year to $1.8 billion, beating the consensus mark of $1.7 billion. Investment income of $253 million fell 7% year over year in the quarter under review. However, the metric beat the consensus mark of $235.3 million and our estimate of $241.9 million. The benefit ratio came in at 91.1%, which deteriorated 140 basis points (bps) year over year. Total operating expenses increased 26.3% year over year to $39.5 billion, higher than our estimate of $38.9 billion. The year-over-year increase was due to higher benefits and operating costs. The adjusted operating cost ratio of 9.7% improved 120 bps year over year. HUM’s net income increased 27.6% year over year to $693 million but beat our estimate of $562.1 million. Insurance The segment’s revenues rose 25.9% year over year to $39.1 billion in the second quarter on the back of improved per-member premiums derived from HUM’s Medicare and stand-alone PDP businesses, supported by improved Medicare Advantage benchmark funding from the Centers for Medicare and Medicaid Services and a higher Part D direct subsidy tied to the IRA. Adjusted operating income grew 7% year over year to $824 million. The benefit ratio deteriorated 130 bps year over year to 91.2%. The operating cost ratio of 7.1% improved 120 bps year over year. Total medical membership of the segment was 17.9 million as of June 30, 2026, which rose 20.7% year over year. The metric beat the Zacks Consensus Estimate of 17.5 million and our estimate of 17 million. CenterWell The unit recorded revenues of $6.8 billion in the quarter under review, which improved 22.6% year over year and surpassed the Zacks Consensus Estimate of $6.3 billion. The metric benefited from higher revenues stemming from the company’s primary care business. Adjusted operating income rose 27.2% year over year to $514 million. The operating cost ratio of 92.4% improved 30 bps year over year, driven by the ongoing maturation of the v28 risk model update within the company’s primary care business and its cost-cutting and transformation strategy. Humana exited the second quarter with cash and cash equivalents of $6.9 billion, which rose 64.1% from the 2025-end level. Total assets of $57.2 billion increased 16.9% from the figure at 2025-end. Long-term debt amounted to $12 billion, down 3.2% from the figure as of Dec. 31, 2025. Debt to capitalization deteriorated 200 bps year over year to 42.7% at the second-quarter end. Total stockholders’ equity of $19.3 billion advanced 8.8% from the 2025-end figure. HUM generated net cash from operations of $3.2 billion in the first half of 2026, which more than doubled year over year. Humana bought back shares worth $108 million in the first half of 2026. It also paid dividends of $214 million during the same period. Revenues are still projected to be a minimum of $160 billion, which implies a 23.4% increase from the 2025 reported figure. The Insurance segment’s revenues are expected to continue to be forecasted at a minimum of $155 billion. Revenues of the CenterWell segment are still expected to be at a minimum of $25 billion. Adjusted EPS is still projected to be at least $9, which indicates a 47.5% decline from the 2025 figure. GAAP EPS is now projected to be at least $6.52, down from the previously expected guidance of at least $8.36. Management still anticipates Individual Medicare Advantage membership to witness growth of around 25% in 2026. Group Medicare Advantage membership is still expected to record an increase of roughly 150,000. Membership from the Individual Medicare stand-alone PDP is still expected to increase around 1,000,000 this year. State-based contracts are still anticipated to witness membership growth within 25,000-100,000. The GAAP benefit ratio for the Insurance segment is still likely to be 92.75%, with a variability margin of plus or minus 25 basis points. The GAAP consolidated adjusted operating cost ratio is still expected to be at 10%, with a variability margin of plus or minus 25 basis points. GAAP cash flow from operations is still estimated within $2.5-$2.9 billion. Meanwhile, capital expenditures are still projected to be roughly $650 million. The adjusted effective tax rate is expected to be around 25.5%, while the weighted average share count is anticipated at around 121 million. It turns out, estimates revision have trended downward during the past month. The consensus estimate has shifted -437.83% due to these changes. At this time, Humana has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a grade of B on the value side, putting it in the second quintile for value investors. Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Humana has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Humana is part of the Zacks Medical - HMOs industry. Over the past month, Molina (MOH), a stock from the same industry, has gained 2.1%. The company reported its results for the quarter ended June 2026 more than a month ago. Molina reported revenues of $10.87 billion in the last reported quarter, representing a year-over-year change of -4.8%. EPS of $1.51 for the same period compares with $5.48 a year ago. Molina is expected to post earnings of $0.73 per share for the current quarter, representing a year-over-year change of -60.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -17.4%. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Molina. Also, the stock has a VGM Score of C. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Humana Inc. (HUM) : Free Stock Analysis Report Molina Healthcare, Inc (MOH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

A month has gone by since the last earnings report for Centene (CNC). Shares have added about 5.9% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Centene due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. Centene Q2 Earnings Beat Estimates on Increasing Premiums Centene reported second-quarter 2026 adjusted earnings per share (EPS) of $2.51, which surpassed the Zacks Consensus Estimate of 89 cents. Moreover, the bottom line climbed from a loss of 16 cents per share a year ago. Revenues totaled $53.6 billion, which rose 9.9% year over year. The top line beat the consensus mark by 12.7%. The strong quarterly results benefited from strong premium and services revenues in Medicaid and Medicare businesses, fueled by increased premium yield, expanding membership in the Prescription Drug Plan (PDP) business and rate hikes in Marketplace and Medicaid businesses. However, the upside was partly offset by a decline in total membership and an increase in medical costs. Revenues from Medicare advanced 17% year over year to $11.1 billion, and Medicaid revenues of $22.8 billion rose 5% in the quarter under review. Meanwhile, commercial revenues came in at $9.4 billion, down 7% year over year. Centene's premium of $43.6 billion grew 4.4% year over year on the back of higher premiums yield, increased membership in the PDP business and strength in the Medicaid and Marketplace rate hikes. The metric beat the Zacks Consensus Estimate of $42.5 billion. Service revenues rose 9.1% year over year to $793 million in the second quarter and surpassed the consensus mark of $723 million. Investment and other income of $435 million improved 17.3% year over year and topped the Zacks Consensus Estimate of $359 million. Total membership was 25.9 million as of June 30, 2026, which decreased 7.6% year over year due to membership declines in the Medicaid, Marketplace and Medicare businesses. However, the metric marginally beat the consensus mark. Centene’s health benefits ratio improved 340 basis points year over year to 89.6% in the quarter under review. Operating expenses totaled $52.4 billion, which increased 6.5% year over year due to higher medical costs, selling, general and administrative expenses, cost of services and premium tax expense. Medical costs escalated 0.6% year over year. Adjusted net earnings were recorded at $1.2 billion against the year-ago loss of $79 million. Centene exited the second quarter with cash and cash equivalents of $24.2 billion, which rose 35% from the 2025-end level. Total assets of $83 billion grew 8.2% from the figure at 2025-end. Long-term debt amounted to $16 billion, down 7.6% from the figure as of Dec. 31, 2025. The current portion of long-term debt totaled $75 million. Total stockholders’ equity of $22.6 billion increased 13% from the 2025-end figure. Centene generated $8 billion of net cash from operations in the first half of 2026, which increased from the prior-year comparable period’s $3.3 billion. Management now expects premium and service revenues within the band of $173-$177 billion for 2026, up from the previous guidance range of $171-$175 billion. The midpoint of which indicates growth of 0.2% from the 2025 reported figure. Revenues are now estimated between $193.5 billion and $197.5 billion, up from the previously projected band of $187.5 billion-$191.5 billion, the midpoint of which implies a 0.4% increase from the 2025 figure. Adjusted EPS is now expected to be greater than $4.80, higher than the previously projected figure of $3.40, which indicates a surge of more than 130.8% from the 2025 figure. GAAP EPS is now forecasted to remain greater than $3.11. Health benefits ratio is now estimated to be in the band of 90.5-91.3% for 2026, while the adjusted SG&A expense ratio is now anticipated to be 6.9-7.5%. The adjusted effective tax rate is now expected to be in the range of 25.5-26.5%. Shares outstanding are now projected to be between 497 million and 500 million. Since the earnings release, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted 22.57% due to these changes. Currently, Centene has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock has a score of A on the value side, putting it in the top 20% for this investment strategy. Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Centene has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months. Centene is part of the Zacks Medical - HMOs industry. Over the past month, Molina (MOH), a stock from the same industry, has gained 1.7%. The company reported its results for the quarter ended June 2026 more than a month ago. Molina reported revenues of $10.87 billion in the last reported quarter, representing a year-over-year change of -4.8%. EPS of $1.51 for the same period compares with $5.48 a year ago. For the current quarter, Molina is expected to post earnings of $0.73 per share, indicating a change of -60.3% from the year-ago quarter. The Zacks Consensus Estimate has changed -17.4% over the last 30 days. Molina has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Centene Corporation (CNC) : Free Stock Analysis Report Molina Healthcare, Inc (MOH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. Molina Healthcare stock presents an interesting setup for valuation focused investors, with a 38.1% share price decline over the past three years sitting alongside a high value score and an undervalued read on market multiples. The share price is down 38.1% over the past three years, which raises the question of whether recent weakness has already priced in many of the concerns around the business. Stronger confidence in long term Medicaid funding can support higher earnings expectations for Molina Healthcare, while ongoing pressure from rising medical costs and Marketplace headwinds may limit how much investors are willing to pay for those earnings. Molina Healthcare scores 5 out of 6 on the broader valuation checks, which leans toward the stock looking inexpensive on several standard metrics. The issue now is whether that combination of past share price weakness and a strong value score really adds up to a margin of safety at around US$199.63 per share. Find out why Molina Healthcare's 14.2% return over the last year is lagging behind its peers. P/S is a useful way to look at Molina Healthcare because revenue is a clean starting point for a business where earnings can swing with medical cost trends and policy changes. On this metric, Molina Healthcare trades at about 0.2x P/S, using a P/S ratio of 0.24x. The wider Healthcare industry average sits around 1.5x, while the peer group screens even higher at roughly 2.0x. Based on a fair P/S ratio of 0.8x that factors in the company’s size, margins and risk profile, the current level implies a steep discount to what investors might typically pay for similar revenue streams. Despite the strong Q1 2026 update improving sentiment around Medicaid funding, the stock is still priced well below those benchmarks on sales. For investors who expect Molina Healthcare to sustain its revenue base under current policy settings, this gap on P/S may be notable. On the preferred P/S multiple, Molina Healthcare stock appears inexpensive relative to both its indicated fair ratio and the wider Healthcare sector. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives pick up where the Molina Healthcare valuation puzzle leaves off and spell out which paths for growth, margins and earnings would need to play out for the stock to be worth materially more or less than today’s price, based on community views. Each Narrative ties its figure to a clear stance on how Molina Healthcare's growth, profitability and risks might evolve, which you can revisit as new information appears. They are available on the company’s Community page. Community views on Molina Healthcare are split between a policy stabilisation upside story and a more cautious read on cost and contract risks. Bull case: roughly fairly valued Read the full Bull Case to see why Molina Healthcare could be undervalued Bear case: 36% overvalued Read the full Bear Case to see why Molina Healthcare could be overvalued Do you think there's more to the story for Molina Healthcare? Head over to our Community to see what others are saying! Molina Healthcare screens as undervalued on market multiples, with a high value score backing the idea that investors are paying relatively little for each dollar of revenue. That discount only matters if Molina Healthcare can keep its Medicaid and Marketplace economics resilient enough for those revenues to convert into durable earnings. The key question is whether medical cost trends and policy decisions ease enough to let margins hold or improve. The valuation gap then becomes either a genuine opportunity or a sign that the market is already bracing for a tougher earnings path. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include MOH. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

A month has gone by since the last earnings report for Molina (MOH). Shares have lost about 1.7% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Molina due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. MOH Q2 Earnings Beat on Lower Operating Expenses, 2026 EPS View Raised Molina Healthcare reported second-quarter 2026 adjusted earnings per share (EPS) of $1.51, which beat the Zacks Consensus Estimate by 10.2%. The bottom line declined 72.4% from the year-ago period's level. Revenues amounted to $10.9 billion, which decreased 4.8% year over year. The top line marginally missed the consensus mark by 0.08%. Second-quarter earnings benefited from lower operating expenses. However, lower premium revenues, declining membership, and weaker investment income weighed on its performance. Premium revenues of $10.2 billion decreased 5.7% year over year and missed the Zacks Consensus Estimate by 1.8%. The decline primarily reflected lower membership levels, partially offset by pricing actions. As of June 30, 2026, total membership decreased 14.3% year over year to around 4.9 million and missed the Zacks Consensus Estimate by 1.6%. The health insurer witnessed a year-over-year decrease in customers across all segments, especially in Marketplace and Other. Investment income declined 4.7% year over year to $101 million. The figure beat the Zacks Consensus Estimate by 1.8%. Total operating expenses were $10.7 billion, down 2.9% year over year and slightly below our model estimate of $11 billion, driven by lower medical care costs. The adjusted general and administrative expense ratio increased to 6.5% from 6.1% a year ago. Interest expense increased 12.5% year over year to $54 million. The consolidated MCR (medical costs as a percentage of premium revenues) was 92.2% in the reported quarter. It rose from 90.4% a year ago but was marginally below the Zacks Consensus Estimate of 92.5%. Molina Healthcare’s adjusted net income decreased 73.8% year over year to $77 million. Molina Healthcare exited the second quarter with cash and cash equivalents of $5 billion, which increased from the 2025-end level of $4.2 billion. Total assets of $16 billion rose from $15.6 billion as of 2025-end. Long-term debt totaled $3.8 billion, which remained unchanged from the 2025-end level. Total stockholders’ equity of $4.2 billion inched up from $4.1 billion at the end of 2025. Net cash provided by operating activities was $788 million compared to net cash used in operating activities of $112 million in the prior-year period. The company's full-year 2026 premium revenue guidance has remained unchanged at about $42 billion, down roughly 2% from 2025. Management expects 2026 GAAP earnings of at least $2.15 per diluted share, up from its previous guidance of at least $1.90. It also raised its full-year 2026 adjusted earnings guidance by $0.25 to at least $5.25 per diluted share. MOH raised its 2026 adjusted net income guidance to $268 million from $256 million. It also increased its GAAP net income guidance to $110 million from the previous estimate of $97 million. In the past month, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted -27.16% due to these changes. At this time, Molina has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock has a score of B on the value side, putting it in the second quintile for value investors. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Molina has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Molina Healthcare, Inc (MOH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Sycamore Capital Management, a franchise of Victory Capital Management, released its Q2 2026 investor letter for "Sycamore Mid Cap Value Equity Strategy". A copy of the letter can be downloaded here. Sycamore Capital's Mid Cap Value investment team focuses on a bottom-up approach to identify undervalued businesses with growth potential. In Q2 2026, the strategy returned 9.6% (net) underperforming the Russell Midcap Value Index's 13.83% return, due to both stock selection and sector allocation. Small-cap equities outpaced both large- and mid-cap equities during the second quarter of 2026. While U.S. indices like the S&P 500® Index saw significant gains in the quarter, market dynamics shifted towards a select group of stocks driven by AI-related momentum. The commentary highlights underlying risks, such as market concentration and the influence of passive investment vehicles, reminding investors to reconsider their exposure to AI. Overall, it calls for a cautious evaluation of current investments in light of these risks. Please review the Fund’s top five holdings to gain insights into their key selections for 2026. In its Q2 2026 investor letter, Sycamore Mid Cap Value Equity Strategy highlighted Molina Healthcare, Inc. (NYSE:MOH). Molina Healthcare, Inc. (NYSE:MOH), a managed healthcare services company that operates through Medicaid, Medicare, Marketplace, and other segments, contributed to the strategy's performance this quarter. On August 12, 2026, Molina Healthcare, Inc. (NYSE:MOH) closed at $206.06 per share, reflecting a market capitalization of $10.76 billion and a year‑to‑date gain of 20.40%. Molina Healthcare, Inc. (NYSE:MOH) posted a one‑month return of ‑7.06%, while its shares gained 30.90% over the past 52 weeks.” Sycamore Mid Cap Value Equity Strategy stated the following regarding Molina Healthcare, Inc. (NYSE:MOH) in its Q2 2026 investor letter: Molina Healthcare, Inc. (NYSE:MOH) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 51 hedge fund portfolios held Molina Healthcare, Inc. (NYSE:MOH) at the end of the first quarter, compared to 55 in the previous quarter. While we acknowledge the potential of Molina Healthcare, Inc. (NYSE:MOH) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered Molina Healthcare, Inc. (NYSE:MOH) and shared a list of best turnaround stocks to buy in 2026. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors. READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years. Disclosure: None. This article is originally published at Insider Monkey.

Humana Inc. HUM is set to report second-quarter 2026 results on July 29, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $6.22 per share on revenues of $40.65 billion. The second-quarter earnings estimate has witnessed three upward revisions and no movement in the opposite direction over the past 60 days. However, the bottom-line projection indicates a year-over-year decrease of 0.8%. Yet, the Zacks Consensus Estimate for quarterly revenues implies year-over-year growth of 25.5%. Image Source: Zacks Investment Research For full-year 2026, the Zacks Consensus Estimate for Humana’s revenues is pegged at $162.60 billion, implying a rise of 25.3% year over year. However, the consensus mark for current-year EPS is pegged at $9.25, implying a plunge of around 46% on a year-over-year basis. HUM’s earnings beat the consensus estimate in three of the trailing four quarters and missed once, with the average surprise being 3.8%. Humana Inc. price-eps-surprise | Humana Inc. Quote Our proven model predicts a likely earnings beat for the company this time around as well. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is precisely the case here. Humana has an Earnings ESP of +1.71% and a Zacks Rank #1. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. You can see the complete list of today’s Zacks #1 Rank stocks here. The Zacks Consensus Estimate for HUM’s second-quarter premiums indicates a 25.6% increase from the prior-year quarter’s reported figure, whereas our model predicts 24% growth. We expect total Medicare to witness 26.6% growth in the quarter under review. Similarly, the consensus mark for service revenues signals a 22.3% increase from a year ago, whereas our model predicts a nearly 16% jump. Also, the Zacks Consensus Estimate for insurance membership predicts a 18.2% year-over-year growth, whereas specialty membership is expected to rise 3.7%. The Zacks Consensus Estimate for operating income from the Insurance unit indicates 10.2% growth from a year ago. The same for the CenterWell unit predicts a 12.8% growth from the year-ago level. The above-mentioned factors are expected to have positioned the company for an earnings beat in the second quarter. However, the consensus estimate indicates that Humana’s investment income will see a 13.5% drop from the year-ago level. We expect total operating costs to increase 24.4% in the second quarter, bringing the figure above $38.9 billion. This is likely to have led to a year-over-year decline in the bottom line. The consensus mark for insurance benefits expense ratio is pegged at 91.3% for the to-be-reported quarter, deteriorating from 89.9% a year ago. These are likely to have partially offset the positives. Several healthcare companies, including UnitedHealth Group Incorporated UNH, Molina Healthcare, Inc. MOH and Elevance Health, Inc. ELV, have already reported their financial results for the June quarter of 2026. Here’s how they performed: UnitedHealth reported second-quarter 2026 adjusted EPS of $6.38, which beat the Zacks Consensus Estimate of $4.94. The bottom line rose 56.4% year over year. Its strong quarterly results were aided by growth in commercial fee-based membership and the strength witnessed in Optum Insight. Medical cost management, pricing discipline and benefit design changes also contributed to the upside. However, weakness in UNH’s Optum Health, Optum Rx and declining risk-based membership partially offset the positives. Molina reported second-quarter 2026 adjusted EPS of $1.51, which beat the Zacks Consensus Estimate by 10.2%. But the bottom line declined 72.4% from the year-ago period's level. MOH’s earnings benefited from lower operating expenses. However, lower premium revenues, declining membership, and weaker investment income weighed on its performance. Elevance reported second-quarter 2026 adjusted EPS of $7.45, which surpassed the Zacks Consensus Estimate by 20.6%. However, the bottom line declined 15.7% year over year.The quarterly results were primarily driven by higher premium yields in the Health Benefits segment and increased CarelonRx product revenues. The upside was partly offset by a decline in ELV’s overall medical membership and an elevated expense level. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Humana Inc. (HUM) : Free Stock Analysis Report UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report Molina Healthcare, Inc (MOH) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Adjusted Earnings Per Share (EPS): $1.51 for Q2 2026. Premium Revenue: $10.2 billion for Q2 2026. Consolidated Medical Care Ratio (MCR): 92.2% for Q2 2026. Medicaid MCR: 92.7% for Q2 2026. Medicare MCR: 90.7% for Q2 2026. Marketplace MCR: 88.9% for Q2 2026. Full-Year 2026 Premium Revenue Guidance: Approximately $42 billion. Full-Year 2026 Adjusted EPS Guidance: Increased by $0.25 to at least $5.25 per share. Full-Year Medicaid Pretax Margin: Expected 1.2% for 2026. Full-Year Medicare Contribution: Expected $0.25 per share for 2026. Full-Year Marketplace Guidance: Loss of $0.75 per share for 2026. Operating Cash Flow: $788 million for the first 6 months of 2026. Debt-to-Capital Ratio: Approximately 47% at the end of Q2 2026. Days in Claims Payable: 44 days at the end of Q2 2026. Warning! GuruFocus has detected 9 Warning Signs with MOH. Is MOH fairly valued? Test your thesis with our free DCF calculator. Release Date: July 23, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Molina Healthcare Inc (NYSE:MOH) reported a strong second-quarter performance with adjusted earnings per share of $1.51 and $10.2 billion in premium revenue. The company's Medicaid business produced a Medical Care Ratio (MCR) of 92.7% in the second quarter, in line with expectations, and the medical cost trend remained stable. Medicare segment showed significant improvement with a second-quarter MCR of 90.7%, better than expected, driven by strong performance in duals products. Molina Healthcare Inc (NYSE:MOH) increased its full-year 2026 adjusted earnings guidance by $0.25 to at least $5.25 per share, reflecting strong first-half performance in Medicaid. The company successfully retained significant contracts, including a $2 billion managed Medicaid contract in Illinois and a regional contract in Wisconsin, enhancing growth opportunities. The Marketplace segment underperformed with a second-quarter MCR of 88.9%, higher than expected, due to unfavorable prior year risk adjustment and member acuity mix. Full-year Marketplace guidance was reduced by $1.50 per share, from a gain to a loss, due to prior year items and current year unfavorable member acuity mix. Molina Healthcare Inc (NYSE:MOH) plans to reduce its Marketplace footprint in 2027, indicating challenges in this segment. The implementation of the new Florida CMS contract is expected to impact Medicaid by $1.50 per share in 2026, contributing to losses. The company faces regulatory and political challenges, including Medicaid work requirements and potential funding pressures, which could impact future performance. Q: Can you explain the impact of the exchange business on EPS and the visibility on these fluctuations? A: Joseph Zubretsky, President and CEO, explained that Molina Healthcare implemented significant rate increases to reduce their footprint in the exchange market. Despite pricing for an acuity shift, the actual member acuity mix was underestimated. Mark Keim, CFO, added that the current guidance reflects a $0.75 loss in Marketplace, with $1 attributed to prior year items and $0.25 to current year performance. Q: What drove the adverse selection in the ACA market, and how are you accruing for 2026 plan year risk adjustment? A: Joseph Zubretsky noted that as the book shrinks, members needing coverage tend to stay, leading to high-cost drug utilization without corresponding HCC codes. Mark Keim added that while the Wakely reports show less market attrition than expected, Molina's retained members are skewing negative from the original outlook. Q: How are you addressing the issues in the exchange market for 2027? A: Joseph Zubretsky stated that the issue is not with product design but with the retained high-acuity members. Molina plans to reduce its footprint further and price according to the current member acuity. Mark Keim emphasized that pricing will reflect the current book's acuity and risk adjustment. Q: Can you provide insights into Medicaid cost trends and any off-cycle rate updates? A: Joseph Zubretsky mentioned that Medicaid cost trends remained stable at 5%, with minor off-cycle rate increases. Mark Keim added that the rate cycle is skewed to the first quarter, explaining small variances in MCR quarter-to-quarter. Q: How are states handling the Medicaid work requirements and RFP pacing? A: Joseph Zubretsky explained that states are working within CMS guidelines, with Nebraska providing a comprehensive program for eligibility verification. The RFP calendar remains intact, with no regulatory issues affecting the pace. Q: What are the expectations for G&A leverage and upcoming contract implementations? A: Joseph Zubretsky highlighted that G&A leverage should improve as premium grows, with potential upside from artificial intelligence. Mark Keim explained that half of the G&A load is fixed and half is variable, with fixed costs growing at inflation. Q: How do you view the potential for Medicaid margin recovery amid regulatory changes? A: Joseph Zubretsky acknowledged regulatory pressures but emphasized that the market is underfunded by 300 basis points. Mark Keim added that Molina only needs 90 basis points of improvement to hit target margins, making the odds favorable. Q: Can you elaborate on the Florida CMS contract and its financial impact? A: Joseph Zubretsky expressed confidence in the financial viability of the Florida CMS program, with a $1.50 drag expected in 2026 due to G&A and initial margin build. Mark Keim detailed the quarterly progression, noting that the drag is non-recurring. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management identified 2026 as a 'trough year' for Medicaid margins, citing a stabilized but still imbalanced relationship between 4% rate updates and 5% medical cost trend. Performance attribution for the quarter was led by the Medicare Duals segment, which achieved target margins faster than expected due to lower-than-anticipated medical cost trend across pharmacy and inpatient categories. The Marketplace segment faced significant headwinds from unfavorable member acuity mix, as the company's strategy to reduce its footprint led to adverse selection among high-utilizing members. Operational discipline in G&A remains a core strategic pillar, with management targeting a sub-6% ratio by 2029 through fixed-cost leverage and the future implementation of artificial intelligence. The company maintained a high 90% retention rate on contract reprocurements, including significant wins in Illinois and Wisconsin that secure the long-term premium base. Management characterized the broader Medicaid market as being underfunded by approximately 300 basis points, positioning Molina for significant margin recovery as state actuaries adjust for observed costs. The 2027 premium outlook was revised to $46.5 billion, accounting for a $1 billion intentional reduction in Marketplace exposure and a $500 million headwind from California's shift of undocumented members to fee-for-service. Management projects 2027 earnings power of more than $10 per share, driven by the reversal of $2.50 in non-recurring 2026 losses related to Florida implementation and discontinued Medicare products. The path to a $25 EPS target in 2029 assumes a 90 basis point improvement in Medicaid MCR over three years and the successful deployment of capital into accretive M&A opportunities. Guidance for 2027 assumes the Marketplace segment will return to at least breakeven as the company further consolidates its footprint into approximately six core states. Future rate updates are expected to be favorable, with 55% of the Medicaid premium scheduled for reset on January 1, 2027, providing a mechanism to correct current funding imbalances. A $1.50 per share headwind in 2026 is attributed to the Florida CMS contract implementation, involving pre-revenue G&A and conservative initial reserve positioning. The company is exiting its MAPD product for 2027, which contributed a $1.00 per share loss in the current period but will not recur in the future earnings base. Marketplace results were negatively impacted by $1.00 per share in prior-year items, split between risk adjustment true-ups and program integrity adjustments. Management noted that while new CMS Medicaid work requirements may reduce enrollment by 2-3% annually, the impact on member acuity is expected to be minor and gradual. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management explained that high-utilizing members on expensive drug therapies remained 'sticky' despite significant price increases, leading to higher-than-modeled acuity. The company noted that some high medical expenses do not drive commensurate Hierarchical Condition Category (HCC) scores, creating a gap in risk-adjustment revenue. Management confirmed that while trend remains high at 5%, it has plateaued in categories like behavioral health and professional office visits. The company expects a strong 'jump-off point' for 2027, with the second half of 2026 projected to produce nearly a 2% Medicaid pretax margin excluding Florida startup costs. Management acknowledged federal pressure on state-directed payments and waivers but argued that the 10-15% savings managed care provides to states makes the program indispensable. They emphasized that Molina only needs a 90 basis point improvement to hit targets, even if the broader market struggles to recover the full 300 basis point underfunding. The 180 basis point improvement in Medicare MCR was driven entirely by the Duals segment, where trend came in at 4% versus the 6% originally budgeted. Management attributed the favorability to conservative initial pricing for new products and broad-based lower utilization in pharmacy and inpatient services.

Interested in Molina Healthcare, Inc? Here are five stocks we like better. Molina Healthcare beat second-quarter expectations with adjusted EPS of $1.51 on $10.2 billion of premium revenue, and it raised full-year 2026 adjusted EPS guidance to at least $5.25. The increase was driven mainly by stronger Medicaid performance and better-than-expected Medicare duals results. Medicaid remained broadly in line with expectations, with management saying trends are stable and 2026 may be a trough year for margins. The company also said rate updates and future 2027 pricing negotiations could help close the gap between costs and reimbursement. Marketplace remains the weak spot, with higher medical costs and prior-year items forcing Molina to cut its full-year Marketplace outlook to a $0.75 per share loss from a prior expected gain. Management also warned that 2027 will include a roughly $1 billion reduction in Marketplace premium as the company shrinks exposure in that business. 3 Sectors to Buy While They're Down and 1 to Walk Away From Molina Healthcare (NYSE:MOH) reported second-quarter 2026 adjusted earnings per share of $1.51 on $10.2 billion of premium revenue, with management pointing to steady Medicaid performance and stronger-than-expected Medicare duals results while acknowledging continued pressure in its Marketplace business. President and CEO Joe Zubretsky said the company’s consolidated medical care ratio, or MCR, was 92.2% in the quarter, reflecting “solid operating performance” in what he described as a challenging medical cost environment. Molina produced a 1% adjusted pre-tax margin in the quarter and a 1.3% margin year to date. → Could Truth API Become Trump Media’s First Meaningful Revenue Driver? Why Centene Stock Dropped 40% — And Whether It's a Buy Now The company raised its full-year 2026 adjusted EPS guidance by $0.25 to at least $5.25 per share, while leaving full-year premium revenue guidance unchanged at approximately $42 billion. Zubretsky said the increase reflected first-half performance in Medicaid, partially offset by a lower outlook for Marketplace. In Medicaid, Molina reported a second-quarter MCR of 92.7%, which management said was in line with expectations. Zubretsky said medical cost trend remained stable and consistent with the company’s full-year guidance of 5%. → 3 Photonics Companies Making Quantum Tech Possible 3 Health Insurance Stocks Holding Green in Market Turmoil For the full year, Molina continues to expect a Medicaid MCR of 92.9%, with rate updates consistent with its 4% guidance and medical cost trend unchanged at 5%. Management said the gap between rates and trend appears to have stabilized and remains positioned to be addressed through future rate increases. “We continue to believe that 2026 represents a trough year for Medicaid margins,” Zubretsky said, adding that the company remains optimistic about the 2027 rate-setting process as state actuaries incorporate more recent medical cost trends. → AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off CFO Mark Keim said Medicaid’s first-half MCR of 92.4% is expected to rise to 93.3% in the second half due to normal seasonality and the implementation of the Florida CMS contract. He said any further off-cycle rate updates or early outperformance in Florida CMS would represent potential upside to 2026 guidance. Molina’s Medicare segment posted a second-quarter MCR of 90.7%, which was favorable to expectations. Management attributed the performance to the company’s duals products, which benefited from lower trend in several cost categories and 2026 pricing actions. The company lowered its full-year Medicare MCR guidance to 92.2% from 94%, reflecting better performance in duals. Molina now expects Medicare to contribute $0.25 per share in 2026. That includes $1.25 per share from duals, offset by a projected $1 per share loss in its Medicare Advantage prescription drug, or MAPD, product, which the company plans to discontinue for 2027. Zubretsky said Molina had been cautious in its initial expectations as it converted $2 billion of MMP premium to new products and added premium from RFP wins. He said early results indicate the company may reach target margins in duals sooner than originally expected. During the question-and-answer session, management said the upside in Medicare duals was broad-based, with favorable performance in categories including inpatient, pharmacy, outpatient, emergency room, professional office visits and long-term services and supports. The company’s Marketplace business remained the main area of pressure. Molina reported a second-quarter Marketplace MCR of 88.9%, above management’s expectations. Zubretsky said the segment was affected by prior-year risk adjustment and member reconciliation items, as well as unfavorable current-year member acuity mix. For the full year, Molina raised its Marketplace MCR guidance to 90% from 85.5%. The company reduced its Marketplace guidance by $1.50 per share, shifting from an expected gain of about $0.75 per share to a loss of $0.75 per share. Keim said the full-year Marketplace outlook includes approximately $1 per share of losses from prior-year items and about $0.25 per share of gain from the current-year book, resulting in the $0.75 per share loss. He said the decline from prior guidance was driven by roughly $0.50 per share of prior-year items and $1 per share from a weaker current-year membership outlook. Zubretsky said Molina entered 2026 with average Marketplace rate increases of about 30%, intended to reduce the company’s footprint and allocate less capital to the business. However, he said the company underestimated how many higher-cost members would remain with Molina as the book shrank. “Our philosophy is until we’re convinced that the risk pool is stable in that market, we’re going to allocate less capital to it,” Zubretsky said. The company expects to reduce Marketplace exposure by approximately $1 billion in 2027, with membership concentrated in fewer states. Molina provided preliminary commentary on 2027, saying its premium outlook is now approximately $46.5 billion, down from the $48 billion outlined at its Investor Day. The revision reflects an expected $1 billion reduction in Marketplace premium and a $500 million headwind from California’s plan to move members with undocumented immigration status from Managed Medicaid to fee-for-service. Keim said the company’s 2027 EPS building blocks sum to more than $10 per share before considering any Medicaid MCR improvement. These include about $4.50 per share from embedded earnings, the reversal of Florida CMS implementation costs, the discontinuation of MAPD losses and operating leverage. Molina also expects Marketplace to be at least break even in 2027 as it reduces its footprint. The company reiterated confidence in reaching $64 billion of premium revenue by 2029 and a $25 EPS target. Zubretsky said the path depends on MCR improvement in the current business, target margins from announced revenue wins and future initiatives, and operating leverage as the company grows. Keim said Molina ended the quarter with $290 million of parent company cash after harvesting approximately $110 million of subsidiary dividends. Operating cash flow for the first six months of 2026 was $788 million, driven by the timing of government payments in Medicaid and Marketplace. The company’s debt-to-capital ratio was about 47% at quarter-end, and Molina expects parent company cash of approximately $600 million and a debt-to-capital ratio of 44% by year-end. Zubretsky also highlighted contract wins, including retention of a $2 billion Managed Medicaid contract in Illinois and renewal of a regional Wisconsin contract that provides additional opportunity in integrated duals. He said Molina’s historical win rate on re-procurements is now above 90%. On regulation, Zubretsky said CMS’s interim final rule on Medicaid work requirements and biannual reverifications does not change Molina’s long-term view of enrollment reductions. The company expects membership declines to emerge gradually and result in only a minor acuity shift. Management also said it does not expect recent Medicare Stars court rulings to materially affect Molina’s business or product offerings. Molina Healthcare, Inc is a managed care company specializing in government-sponsored health insurance programs. The company offers Medicaid managed care plans, Medicare Advantage and prescription drug plans, and individual Marketplace plans under the Affordable Care Act. Through an integrated care model, Molina emphasizes preventive and primary care services, care coordination, and disease management to improve health outcomes for its members. The company traces its roots to the early 1980s, when Dr. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Molina Healthcare Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Molina Healthcare, Inc. MOH reported second-quarter 2026 adjusted earnings per share (EPS) of $1.51, which beat the Zacks Consensus Estimate by 10.2%. The bottom line declined 72.4% from the year-ago period's level. Revenues amounted to $10.9 billion, which decreased 4.8% year over year. The top line marginally missed the consensus mark by 0.08%. Second-quarter earnings benefited from lower operating expenses. However, lower premium revenues, declining membership, and weaker investment income weighed on its performance. Molina Healthcare, Inc price-consensus-eps-surprise-chart | Molina Healthcare, Inc Quote Premium revenues of $10.2 billion decreased 5.7% year over year and missed the Zacks Consensus Estimate by 1.8%. The decline primarily reflected lower membership levels, partially offset by pricing actions. As of June 30, 2026, total membership decreased 14.3% year over year to around 4.9 million and missed the Zacks Consensus Estimate by 1.6%. The health insurer witnessed a year-over-year decrease in customers across all segments, especially in Marketplace and Other. Investment income declined 4.7% year over year to $101 million. The figure beat the Zacks Consensus Estimate by 1.8%. Total operating expenses were $10.7 billion, down 2.9% year over year and slightly below our model estimate of $11 billion, driven by lower medical care costs. The adjusted general and administrative expense ratio increased to 6.5% from 6.1% a year ago. Interest expense increased 12.5% year over year to $54 million. The consolidated MCR (medical costs as a percentage of premium revenues) was 92.2% in the reported quarter. It rose from 90.4% a year ago but was marginally below the Zacks Consensus Estimate of 92.5%. Molina Healthcare’s adjusted net income decreased 73.8% year over year to $77 million. Molina Healthcare exited the second quarter with cash and cash equivalents of $5 billion, which increased from the 2025-end level of $4.2 billion. Total assets of $16 billion rose from $15.6 billion as of 2025-end. Long-term debt totaled $3.8 billion, which remained unchanged from the 2025-end level. Total stockholders’ equity of $4.2 billion inched up from $4.1 billion at the end of 2025. Net cash provided by operating activities was $788 million compared to net cash used in operating activities of $112 million in the prior-year period. The company's full-year 2026 premium revenue guidance has remained unchanged at about $42 billion, down roughly 2% from 2025. Management expects 2026 GAAP earnings of at least $2.15 per diluted share, up from its previous guidance of at least $1.90. It also raised its full-year 2026 adjusted earnings guidance by $0.25 to at least $5.25 per diluted share. MOH raised its 2026 adjusted net income guidance to $268 million from $256 million. It also increased its GAAP net income guidance to $110 million from the previous estimate of $97 million. Molina currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Medical space are Humana Inc. HUM, currently sporting a Zacks Rank #1 (Strong Buy), and CVS Health Corporation CVS and Cencora, Inc. COR, both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Humana is set to report second-quarter 2026 results on July 29, before the market closes. The Zacks Consensus Estimate for earnings is pegged at $6.22 per share, which has witnessed three upward revisions over the past 60 days, with no movement in the opposite direction. The company beat on earnings in three of the trailing four quarters and missed once, with the average surprise being 3.8%. The consensus estimate for Humana’s second-quarter revenues is pinned at $40.65 billion, indicating a 25.5% year-over-year increase. CVS Health is set to report second-quarter 2026 results on Aug. 5, before the market closes. The Zacks Consensus Estimate for earnings is pegged at $1.87 per share, indicating a 3.3% year-over-year increase. The company beat on earnings in each of the trailing four quarters, with the average surprise being 16.8%. The consensus estimate for CVS Health’s second-quarter revenues is pinned at $100.18 billion, indicating a 1.3% year-over-year increase. Cencora is set to report second-quarter 2026 results on Aug. 5, before the market closes. The Zacks Consensus Estimate for earnings is pegged at $4.37 per share, indicating a 9.3% year-over-year increase. The company beat on earnings in three of the trailing four quarters and missed once, with the average surprise being 1.6%. The consensus estimate for Cencora’s second-quarter revenues is pinned at $84.89 billion, indicating a 5.2% year-over-year increase. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Molina Healthcare, Inc (MOH) : Free Stock Analysis Report Humana Inc. (HUM) : Free Stock Analysis Report CVS Health Corporation (CVS) : Free Stock Analysis Report Cencora, Inc. (COR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research