Molina Healthcare (MOH)
NYSEHealth CareMedical - Healthcare PlansSnapshot 2026-09-04
$200.80-1.04%
Close 2026-09-04 · 1-day change
NYSEHealth CareMedical - Healthcare PlansSnapshot 2026-09-04
Broken: Primary pillar broken — premium revenue of approximately $42 billion in 2026: FY26 revenue guidance not reported; Q2 FY26 rev $10.9B (-6.0% YoY).
Molina Healthcare serves low-income families with Medicaid and Medicare plans. It aims for about $42 billion in premium revenue in 2026. The company expects adjusted earnings of at least $5.00 per share. Winning new contracts supports steady revenue growth.
Margins face pressure from rising medical costs. Earnings fell 61% year over year in Q1 2026. Revenue declined 4% in the same quarter. These trends could limit profit growth and margin improvement.
The stock trades about 35% above our fair value near $172. Analysts expect about 4% revenue growth. Our fair value is slightly below the Street median, reflecting some caution on margin risks.
Breaks if: adjusted EPS falls below $4.50 in FY26
Maintain adjusted earnings guidance of at least $5.00 per diluted share for full year 2026 with updates reflecting first half performance.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a mix of stable earnings potential and exposure to cyclical risks. The current thesis state is intact, supported by recent financial performance, though it faces challenges from market conditions.
The market appears to have priced in a low level of fragility due to weak execution quality, suggesting that expectations are not overly optimistic. Valuation is neutral compared to peers, with a slight premium indicating some confidence in the company's fundamentals.
Management has shown a commitment to reaffirming revenue and earnings guidance, despite a decline in premium revenue. However, the elevated medical costs and mixed performance in adjusted earnings suggest that fundamentals may face pressure in the near term.
The long-term thesis hinges on management's ability to maintain guidance and control costs, as well as broader sector performance. Key factors include the performance of major healthcare companies and the overall economic environment, particularly job growth.
The most important moves since the prior daily snapshot.
Mixed, the news cuts both ways. The latest earnings beat supports the company's outlook. However, a strategic exit from the Medicare Advantage Part D product poses a threat to growth.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Stated as a priority in 3 of last 3 quarters. Adjusted EPS was $1.51 in 2026-Q2 and $2.35 in 2026-Q1, totaling $3.86 for six months, down from $11.56 in first half 2025. Management increased full-year 2026 adjusted EPS guidance from at least $5.00 to $5.25 per share in 2026-Q2, reflecting first half performance. The trajectory shows management updating guidance upward, delivering on earnings focus.
“The Company increased its full year 2026 adjusted earnings guidance by $0.25 to at least $5.25 per diluted share.”
“The Company reaffirmed its full year 2026 adjusted earnings of at least $5.00 per diluted share.”
“The Company expects its full year 2026 adjusted earnings to be at least $5.00 per diluted share.”
Breaks if: medical cost ratios worsen materially over next 4 quarters
Breaks if: premium revenue falls below $41 billion in FY26
Maintain premium revenue guidance at approximately $42 billion for full year 2026 despite membership and market challenges.
Stated as a priority in 3 of last 3 quarters. Premium revenue was $10.2B in 2026-Q2 and $10.2B in 2026-Q1, totaling $20.4B for six months, down from $21.5B in first half 2025. Despite this, management reaffirmed full-year 2026 premium revenue guidance at approximately $42B. The trajectory shows stable guidance amid modest revenue decline, indicating management is maintaining focus on this target.
“Premium revenue guidance for the full year is unchanged at approximately $42 billion.”
“The Company reaffirmed its full year 2026 premium revenue guidance of approximately $42 billion.”
“The Company issued its full year 2026 earnings guidance with expected premium revenue of approximately $42 billion.”
Over the next 1 to 3 years, MOH's performance will depend on effective management execution and external market conditions. Not investment advice.