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The company now expects annual adjusted profit of about $14 per share, down sharply from its prior view of at least $19 per share. Sign up here. The outlook was disproportionately affected by "unprecedented" medical costs in its Marketplace plans that serve individuals under the Affordable Care Act, Molina said. It expects the costs to remain high until the end of the year. "Buyside expectations were materially below $19. New EPS guide is well below that," said Jefferies analyst David Windley. Health insurers have warned of elevated costs across government-backed plans, as demand for healthcare increased across the U.S. over the last two years. Molina had cut its annual profit forecast twice in July, anticipating the higher medical costs. Molina sees potential to improve its margins next year and said its preliminary profit 2026 outlook is expected to approximate its 2025 forecast. But analysts remained skeptical whether the company has priced in all the headwinds. Given the choppiness in both Medicaid and Marketplace, Molina will need to lay out clear expectations around margin drivers behind its 2026 adjusted profit expectations, J.P. Morgan analysts said. Reporting by Sneha S K in Bengaluru; Editing by Sahal Muhammed
