Molina Healthcare Says Higher Medical Cost Trends Bite, Cuts Profit Guidance

Molina Healthcare, Inc. MOH on Monday issued preliminary second-quarter results and lowered its full-year 2025 earnings outlook, citing rising medical costs across its Medicaid, Medicare, and state marketplace businesses.

The managed care company now expects Q2 adjusted earnings of approximately $5.50 per share—slightly below earlier forecasts—due to cost pressures that it expects will persist into the second half of the year. As a result, Molina cut its full-year 2025 adjusted EPS guidance to a range of $21.50 to $22.50, down from at least $24.50 previously. The new forecast reflects a consolidated pre-tax margin just under 4%, at the low end of the company's long-term target.

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“The short-term earnings pressure we are experiencing results from what we believe to be a temporary dislocation between premium rates and medical cost trend, which has recently accelerated,” said CEO Joseph Zubretsky. “As we are still performing near our long-term target ranges, nothing, including the potential impacts of the budget bill, has changed our outlook for the long-term performance of the business.”

On Wednesday, Centene Corp CNC withdrew its 2025 GAAP and adjusted diluted EPS guidance, stemming from its initial review of 2025 industry data from Wakely, an independent actuarial firm.

Price Action: MOH stock is up 1.64% at $243.50 during the premarket session at the last check on Monday.

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