Molina Q3 Miss, Cuts 2025 Forecast

Molina Healthcare reported a sharp Q3 earnings miss, with adjusted EPS of $1.84 versus about $3.90 expected, net income falling to $79 million from $326 million year‑over‑year, and revenue of $11.48 billion. Management blamed higher‑than‑anticipated medical costs—especially in the Affordable Care Act Marketplace and to some extent Medicare—pushing its medical‑cost ratio to about 92.6% and prompting a material cut to 2025 profit guidance of roughly $14 a share (with some outlets reporting as low as $11.90). Shares plunged roughly 19% premarket and are down about one‑third year‑to‑date as investors worry about persistent medical‑cost inflation, ACA/Medicaid funding uncertainty and rising utilization. Molina said Medicaid is delivering stronger margins but called Marketplace trends “unprecedented” and expects pressure to persist through year‑end; it also signaled a preliminary 2026 profit outlook roughly in line with 2025. Ongoing securities lawsuits, analyst skepticism and continued scrutiny of margin drivers leave the company working to stabilize profits and investor confidence.