Molina Healthcare reported its second-quarter 2025 financial results with adjusted earnings per share (EPS) of $5.48, missing the consensus estimate of $5.72. Revenue reached $11.43 billion, surpassing estimates, driven by a 15% year-over-year increase in premium revenue to approximately $10.9 billion. However, rising medical costs pushed the medical cost ratio (MCR) to 90.4%, pressuring profit margins. Consequently, Molina lowered its full-year EPS guidance from $21-22 to $19 per share. Similarly, Centene reported a second-quarter adjusted loss per share of $0.16, missing the estimated profit of $0.23, despite revenue of $48.74 billion beating estimates of $44.24 billion. Centene's health benefits ratio rose to 93.0% from 87.6% year-over-year, exceeding the estimated 91.6%, reflecting increased medical claims and costs. Centene also reduced its EPS guidance to $1.75 from a consensus of $2.94. These earnings misses and rising medical cost ratios have negatively impacted shares of major health insurers including Molina Healthcare, Centene, Elevance, UnitedHealth, and Cigna. UnitedHealth’s stock has fallen 60% over recent months amid a Department of Justice probe and operational challenges, leading to a downgrade by Baird from Neutral to Underperform with a price target cut to $198, implying a 19% downside. The CFO of UnitedHealth was reportedly dismissed amid these challenges. Cigna was noted as an exception, having beaten earnings estimates and reaffirmed guidance.