MOH Molina Healthcare (MOH) Q2 FY26 earnings call
Molina Healthcare delivered solid Q2 FY26 results, driven by strong performance in its Medicaid and Medicare duals businesses, which are exceeding initial expectations. The company raised its full-year EPS guidance despite significant headwinds from its Marketplace segment, where unfavorable acuity mix and prior-year adjustments led to a substantial reduction in profitability. Management is actively de-emphasizing the Marketplace business and remains confident in its long-term growth targets, supported by embedded earnings and G&A leverage.
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MOH operating KPIs by quarter
| KPI | Mar 2026 Q1 FY26 | This call Jun 2026 Q2 FY26 | Sep 2026 Q3 FY26 | Change vs prior quarter |
|---|---|---|---|---|
| Medical care ratio | 91.1%Our 91.1% consolidated MCR reflects strong operating performance as we continue to navigate a challenging medical cost environment.Source: earnings call transcript | 92.2%Our 92.2% consolidated MCR reflects solid operating performance as we continue to navigate a challenging medical cost environment.Source: earnings call transcript | 92.9%Our 92.9% consolidated MCR reflects solid operating performance as we continue to navigate a challenging medical cost environment.Source: earnings call transcript | +0.7 pt |
| Medical care ratio Medicaid | 92%In Medicaid in the first quarter, the business produced an MCR of 92%.Source: earnings call transcript | 92.7%In Medicaid, the business produced an MCR of 92.7% in the second quarter, which was in line with our expectations.Source: earnings call transcript | 93%In Medicaid, the business produced an MCR of 93% in the third quarter.Source: earnings call transcript | +0.3 pt |
| Medical care ratio Medicare | 89.8%In Medicare, we reported a first quarter MCR of 89.8%.Source: earnings call transcript | 90.7%In Medicare, we reported a second quarter MCR of 90.7% and very favorable to our expectations as our dual business performed much better than expected.Source: earnings call transcript | 93%In Medicare, we reported a third quarter MCR of 93%.Source: earnings call transcript | +2.3 pt |
| Medical care ratio Marketplace | 84%In Marketplace, the first quarter MCR was 84%.Source: earnings call transcript | 88.9%In Marketplace, the second quarter MCR was 88.9%, higher than our expectations.Source: earnings call transcript | 92.5%In Marketplace, the third quarter MCR was 92.5% and in line with our expectations.Source: earnings call transcript | +3.6 pt |
| Medical members Marketplace | 305KMembership stands at 305,000 and is slightly higher than our prior guidance, but the profile of our membership is as expected, following our decision to reduce our exposure in this highly volatile segment.Source: earnings call transcript | 280KAnd we are successful in doing that now at $2.5 billion of premium and 280,000 members.Source: earnings call transcript | — | -8.2% |
Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.
Inve summary of the company's earnings call; see how call summaries are prepared. Not investment advice.