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Feb 5 (Reuters) - Molina Healthcare MOH.N forecast annual profit below Wall Street estimates on Thursday as it expects increased costs in its Obamacare plans to weigh through 2026.

It forecast 2026 adjusted profit to be at least $5 per share, below analysts' estimate of $13.76 per share, according to data compiled by LSEG.

Shares of the Long Beach, California-based company fell nearly 32% in extended trading.

Molina said the annual profit forecast was burdened by $2.50 per diluted share, which includes $1.50 per diluted share due to implementation of the new Florida CMS Medicaid contract , and $1 per diluted share due to underperformance in the traditional Medicare Advantage Part D product.

"We believe that the imbalance between rates and trend marks 2026 as a trough year for Medicaid industry margins. Even at this low point in the cycle, we continue to produce positive pre-tax margins in Medicaid," CEO Joseph Zubretsky said.

The company expects premium annual revenue to be about $42.2 billion, a decline of nearly 2% from full-year 2025. Analysts had expected $45.46 billion.