Molina Healthcare Inc
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +8.13%.
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 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.
- 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
“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.”
Molina Healthcare CEO, on the earnings call
Forward Guidance & Outlook
Molina reaffirmed full-year 2025 guidance: premium revenue of approximately $42 billion (up ~9% YoY), GAAP EPS of at least $22.32, and adjusted EPS of at least $24.50 (representing 8% growth over 2024). The company also disclosed new store embedded earnings of $8.65 per diluted share, representing incremental earnings expected between 2026 and 2028 from newly awarded Medicaid contracts (California, Iowa, Nebraska, New Mexico, Texas, Georgia), Medicare Duals contracts (Idaho, Illinois, Massachusetts, Michigan, Ohio), and recent acquisitions (California Medicare Health Plans and ConnectiCare). Management expressed confidence in achieving its long-term 13% to 15% adjusted EPS growth target.
MOH YoY Financials
MOH Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.