Molina: Q1 Beat Proves The Cost Story, Now Comes Hard Decision For The Management

Molina Healthcare (MOH) remains rated Hold as clarity on post-MAPD cost structure and market share recovery is still pending. MOH's exit from Medicare Advantage removes $1B in unprofitable revenue, improving business quality but shrinking the top line. 2026 guidance is reaffirmed at $42B premium revenue and at least $5.00 adjusted EPS, with underlying normalized earnings power closer to $7.50 per share.