Molina Healthcare

Molina Healthcare (MOH) Q1 2025 Earnings

Reported Apr 23, 2025 at 4:18 PM ET · SEC Source

Q1 25 EPS

$6.08

BEAT +2.05%

Est. $5.96

Q1 25 Revenue

$11.15B

BEAT +3.08%

Est. $10.81B

vs S&P Since Q1 25

-67.8%

TRAILING MARKET

MOH -29.7% vs S&P +38.1%

Market Reaction

Did MOH Beat Earnings? Q1 2025 Results

Molina Healthcare kicked off 2025 with a solid first quarter, posting adjusted earnings per share of $6.08 against a consensus estimate of $5.96, a beat of 2.05%, while revenue of $11.15 billion cleared expectations by 3.08% and grew 12.2% from a yea… Read more Molina Healthcare kicked off 2025 with a solid first quarter, posting adjusted earnings per share of $6.08 against a consensus estimate of $5.96, a beat of 2.05%, while revenue of $11.15 billion cleared expectations by 3.08% and grew 12.2% from a year ago. The top-line expansion was fueled primarily by premium revenue climbing to $10.63 billion from $9.50 billion, reflecting new contract wins, the ConnectiCare acquisition, and rate increases across the company's Medicaid and Marketplace footprints. Marketplace membership nearly doubled to 662,000 from 346,000, though the segment's medical care ratio widened to 81.7% from 73.3%, partly due to prior-year risk adjustment items and costs absorbed from ConnectiCare. Even as elevated Medicaid utilization in pharmacy and behavioral health nudged the consolidated MCR slightly higher, management held its full-year 2025 guidance firm, targeting adjusted EPS of at least $24.50 and premium revenue of roughly $42 billion. With CEO Joe Zubretsky signaling continued appetite for acquisitions, particularly among smaller single-state operators, the company appears focused on sustaining its long-term 13% to 15% adjusted EPS growth trajectory.

Key Takeaways

  • New contract wins and acquisitions driving 12% premium revenue growth
  • Disciplined medical cost management in an improving rate environment
  • G&A ratio improved to 6.9% from 7.2% due to operating leverage
  • Marketplace membership nearly doubled year over year to 662,000
  • Medicare pricing and benefit adjustments improved Medicare MCR to 88.3%
  • New rate cycle offset higher Medicaid utilization in long-term services, pharmacy, and behavioral health
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MOH YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

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MOH Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q4 25

“Our first quarter results reflect our team's disciplined approach to medical cost management in an improving rate environment. Our 2025 earnings and growth profiles are solid, and we remain confident in our ability to achieve our 13% to 15% long-term adjusted EPS growth target.”

— Joseph Zubretsky, Q1 2025 Earnings Press Release