Molina Sinks Most Since 2012 After Slashing Profit Expectations

Molina Healthcare Inc.’s shares plunged after the health insurer forecast 2026 profit that was less than half of Wall Street’s expectations, on higher medical costs and insufficient government repayments.

Shares of Molina were down 29% when markets opened Friday, the biggest drop since June 2012, shaving $2.5 billion off of the company’s market value.

Molina expects adjusted earnings of at least $5 per share in 2026, the company said in a statement Thursday, well below the average estimate of $13.71 per share from Wall Street analysts. It forecast revenue of $44.5 billion, missing the average estimate of $46.6 billion. ...