NEW YORK, May 6, 2026, 11:02 EDT
Oscar Health, Inc. reported first-quarter net income surged, more than doubling from a year ago, and stuck to its full-year 2026 guidance—a move that pushed its shares higher early Wednesday. Net income attributable to Oscar climbed to $679.0 million, or $2.07 per diluted share, compared with $275.3 million, or 92 cents a share, in the prior year.
The report has fresh relevance, as Oscar tries to convince the market that the tough stretch in 2025 was just a reset—not a structural problem with its Affordable Care Act-centric approach. Back in February, Oscar set its 2026 revenue outlook at $18.7 billion to $19.0 billion, with operating earnings pegged between $250 million and $450 million. On Wednesday, the company kept those targets unchanged.
Oscar Health was up 5.3% at $18.89 as of 10:46 a.m. ET, after hitting $20.35 earlier in the session, market data showed. Investors are watching the stock closely this year, seeking signs that rising membership will feed through to better margins.
Revenue jumped to $4.65 billion, up from $3.05 billion last year, driven by gains in both membership and rates. Membership reached 3.17 million as of March 31; a year ago, that number was 2.04 million. Adjusted EBITDA, the company’s preferred non-GAAP figure, surged to $727.1 million compared with $328.8 million.
The medical loss ratio dropped to 70.5%, down from 75.4%. That figure—MLR—measures the portion of premium income insurers spend on care and quality upgrades. Lower MLRs usually translate to better margins, but ACA rules do set a floor on how little can be spent.
Oscar is still “on track to significantly expand margins” and hit “meaningful profitability in 2026,” Chief Executive Mark Bertolini said. He highlighted that consumers are shopping for healthcare coverage based on “choice, price, and value”—phrasing that goes straight to the heart of the individual insurance market, Oscar’s main focus. Business Wire
During the earnings call, Bertolini highlighted Oscar’s 53% jump in revenue from a year ago, describing it as “the largest carrier fully dedicated to the individual market.” Utilization, he noted, mostly matched what the company had projected—a detail that matters for insurers, given how fast increased care use can erode margins. Investing.com
Chris Potochar, who heads up treasury and investor relations at Oscar, said the insurer entered Q2 with roughly 3 million paying members, anticipating steady churn for the rest of the year. As for market morbidity—the overall illness level in the insured group—Potochar called it “very early” to make concrete calls, but said so far the numbers are matching or even beating Oscar’s pricing expectations. Investing.com
Risk adjustment’s still moving the needle here. The ACA’s system shuffles funds between insurers depending on how sick their members are, and Oscar pointed to bigger risk-adjustment accruals this quarter—enough to eat into some of that revenue growth.
Oscar’s focus stays squarely on the individual market—mainly ACA exchange plans—so the competitive angle is tight but key. Shares of managed-care names like Centene and Molina also pushed higher late Wednesday morning, with Centene up roughly 1.5% and Molina advancing about 2.4%.
The quarter’s numbers don’t take the main risk off the table. Oscar flagged several wild cards: swings in medical-cost estimates, shifts in risk-adjustment, possible ACA regulation changes, the end of enhanced Advanced Premium Tax Credits — those federal subsidies that help cut monthly premiums — and new program-integrity rules.
The seasonal swing is up next. Oscar flagged to investors that MLR bottoms out in Q1, peaks in Q4, but stuck with its full-year MLR target—still 82.4% to 83.4%. It’s not really about growth early in the year; what matters now is whether claims and the member mix land where Oscar baked them in.
