MOH

California’s proposed wealth tax is being seen as a test of how aggressive policy can affect healthcare stocks. The article highlights three California healthcare companies that could be most impacted by the tax and state funding changes.

Molina Healthcare’s Q3 2026 earnings showed a sharp margin squeeze, with revenue of $10.6 billion but only $38 million in net income. The stock fell 3.5% to about $209, reflecting investor frustration with profit pressure.

Healthcare insurance company Molina Healthcare (NYSE:MOH) reported Q3 2026 results beating Wall Street’s revenue expectations, but sales fell by 3.4% year on year to $11.08 billion. Its non-GAAP profit of $0.89 per share was 12% above analysts’ consensus estimates.

UBS analyst A.J. Rice keeps a Neutral rating on Molina Healthcare and lifts the price target from $202 to $225.

Morgan Stanley analyst Erin Wright maintains an Equal‑Weight rating on Molina Healthcare and raises the price target from $167 to $192.

Molina Healthcare’s third quarter results reflected continued pressure from a challenging medical cost environment, with year-on-year declines in revenue and membership. Management pointed to operational execution on recent contracts and modest margin stability as key drivers, despite persistent utilization pressure in Medicaid and Medicare.