Molina runs government-funded health plans for low-income families, covering Medicaid and Medicare members across 18 states. Think of it as a toll booth for taxpayer dollars flowing to doctors and hospitals.
Revenue comes from premiums paid by state and federal programs, totaling USD 45.43B in 2025. Net margin is thin at 1.04%, typical for managed care, with earnings tied to keeping medical costs below premiums.
State contracts and established provider networks create barriers, but rivals like Centene and UnitedHealth compete fiercely for renewals. Moat is eroding as Medicaid redeterminations and pricing pressure squeeze margins.
Sell (sector percentile 13) — value B+, growth D, profitability C, momentum B-, revisions D. Updated daily, sector-relative, identical for every user.
Key events, in time order
Zacks article and Q2 call transcript corroborate, focusing on post-earnings selloff and valuation debate.
FY26 guide raised; Marketplace MCR jumped to 88.9%, pressuring peer OSCR after hours.
Adjusted EPS of $1.51 beat estimates but down sharply YoY; revenue slightly above, FY guide raised
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Facts and opinions separated · All items sourced · Not investment advice
