Molina Healthcare's stock price plummeted 33% following a surprise Q4 loss and bleak guidance for 2026. The managed care provider reported an adjusted loss of -$2.75 per share, far below the expected $0.34. Revenue, however, exceeded expectations at $11.38 billion. This sharp decline reflects investor concern over the company's financial performance.

The disappointing results stemmed from unfavorable retroactive premium adjustments in its California Medicaid business, combined with rising medical costs in its Medicare and Marketplace segments. The company's Medical Care Ratio (MCR) worsened to 94.6%. Management cited a challenging environment, including a new Florida CMS Medicaid contract.

For 2026, Molina projects adjusted earnings of at least $5.00 per share, significantly lower than the $13.71 consensus estimate. Revenue guidance also fell short of expectations. The company anticipates a 2% decline in premium revenue. Investors are now closely watching Molina's strategic adjustments, including exiting traditional Medicare Advantage Part D products in 2027.