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Jun 30, 2025
Molina Q2 2025 Earnings Report
Molina Healthcare, Inc. reported its second quarter 2025 earnings, showing a decrease in GAAP and adjusted earnings per diluted share compared to the previous year, while total revenue increased.
Key Takeaways
Molina Healthcare reported a challenging second quarter in 2025, with GAAP EPS at $4.75 and adjusted EPS at $5.48, both down year-over-year. Despite a 15% increase in premium revenue to $10.9 billion, net income decreased. The company attributed the earnings pressure to a temporary dislocation between premium rates and an accelerated medical cost trend, particularly in behavioral health, pharmacy, and inpatient/outpatient services. Full-year 2025 adjusted earnings guidance was revised downwards to no less than $19.00 per diluted share, though premium revenue guidance of approximately $42 billion was reaffirmed.
GAAP earnings per diluted share for Q2 2025 were $4.75, an 8% decrease year-over-year.
Adjusted earnings per diluted share for Q2 2025 were $5.48, a 6% decrease year-over-year.
Total revenue for Q2 2025 reached $11.427 billion, with premium revenue at $10.868 billion, up 15% year-over-year.
The company revised its full-year 2025 adjusted earnings guidance to no less than $19.00 per diluted share, citing accelerated medical cost trends.
Revenue by Segment
Forward Guidance
Molina Healthcare revised its full-year 2025 GAAP and adjusted earnings guidance downwards due to accelerated medical cost trends, particularly in the Marketplace segment, while reaffirming its premium revenue guidance.
Positive Outlook
- Reaffirmed full-year 2025 premium revenue guidance of approximately $42 billion, an increase of about 9% from 2024.
- New store embedded earnings remain strong at $8.65 per diluted share, indicating future growth potential from new contracts and acquisitions.
- The company believes the current earnings pressure is a temporary dislocation between premium rates and medical cost trends.
- Management expressed confidence in the long-term performance outlook of the business, stating nothing has changed their view.
- Operating discipline and one-time items contributed to favorable G&A ratios in Q2 2025.
Challenges Ahead
- Full-year 2025 GAAP EPS guidance revised downwards to no less than $16.90 per diluted share.
- Full-year 2025 adjusted EPS guidance revised downwards to no less than $19.00 per diluted share.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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