Molina Healthcare's profit and revenue dipped in the second quarter as membership declined.

The insurance company that primarily operates through Medicare and Medicaid, said net income fell to $60 million, or $1.19 a share, from $255 million, or $4.75 a share, a year earlier.

Molina attributed the second-quarter decline in profit to lower premium revenue and an increase in the medical care ratio.

Adjusted earnings per share were $1.51. Analysts polled by FactSet expected $1.39.

Revenue fell 4.8% to $10.87 billion. Analysts polled by FactSet expected $10.83 billion. Premium revenue declined 6% year-over-year reflecting the impact of lower membership, partially offset by rate updates.

Chief Executive Joseph Zubretsky said the imbalance between Medicaid rates and medical costs appears to have stabilized and is well positioned to be corrected with future rate increases. He added that 2026 is a trough year for Medicaid pretax margins but he is confident Molina is well positioned for profitable growth in 2027.

The company raised its fiscal 2026 outlook for earnings per share to at least $2.15 and its view for adjusted earnings per share to at least $5.25. Analysts polled by FactSet expected earnings per share to be $2.58 and adjusted earnings per share to be $5.14.

Full year guidance includes a loss of $1.50 a share due to the implementation of the new Florida Medicaid contract and a loss of $1.00 a share due to performance of the traditional MAPD product, which the company plans to exit for 2027, Molina said.

Write to Grace Yoon at grace.yoon@wsj.com

(END) Dow Jones Newswires

July 22, 2026 16:51 ET (20:51 GMT)

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