NEW YORK, August 6, 2026, 08:01 (EDT) Oscar Health NYSE:OSCR shares advanced after the company beat expectations for its second quarter, even as its forecast calls for a net loss in the latter half.
- Shares were set to open 6.6% up at $32.10 in premarket trade. NYSE regular trading begins at 9:30 a.m. EDT.
- Diluted earnings for the second quarter were $1.10 per share, surpassing analysts’ forecasts of approximately $0.40.
- Calculated estimate: The revised outlook signals an operating loss between $393 million and $593 million for the second half.
Oscar Health stock advanced in premarket trading after the insurer reported quarterly results that topped expectations. Revenue jumped 70%, and executives lifted their 2026 operating profit guidance. Regular U.S. trading was yet to commence.
The division is significant. Oscar reported $1.093 billion in operating income for the first half. However, its updated guidance for the full year is set at $500 million to $700 million. These company data suggest it expects to record an operating loss between $393 million and $593 million in the second half.
The quarter included a significant reserve benefit, as favorable prior-period development lowered medical costs by $164 million. This amount represents roughly 42% of second-quarter operating profit. Adjusting for reserves, a basic estimate brings the medical loss ratio to approximately 82.6%, which exceeds the analyst consensus of 81.2%.
| Second-quarter scorecard | Q2 2026 | Q2 2025 | Consensus estimate | Change or surprise |
|---|---|---|---|---|
| Revenue | $4.880 billion | $2.864 billion | $4.73 billion | Up 70.4% from last year; 3.2% above forecast |
| Diluted EPS | $1.10 | -$0.89 | $0.40 | Beat estimate by $0.70 |
| Medical loss ratio | 79.2% | 91.1% | 81.2% | Improved by 11.9 points from previous year |
| SG&A expense ratio | 14.2% | 18.7% | — | Down by 4.5 points |
| Operating income | $388.6 million | -$230.5 million | — | Improvement of $619.1 million |
| Net income | $361.8 million | -$228.4 million | — | Upturn of $590.2 million |
Company results have not been audited. Consensus numbers reflect analyst forecasts provided prior to publication.
Revenue increased due to growth in membership and higher premium rates. However, a greater net risk-adjustment transfer accrual partially offset these improvements. Effectuated membership climbed 46% to 2.963 million, up from 2.027 million.
Scale contributed to reductions beyond medical expenses. The selling, general and administrative ratio dropped to 14.2% from 18.7%. Oscar attributed this to stricter cost controls and improved fixed-cost leverage. The reported operating margin was close to 8%.
| Full-year 2026 outlook | Previous range | Updated range | Midpoint change |
|---|---|---|---|
| Revenue | $18.7 billion-$19.0 billion | $18.7 billion-$19.0 billion | No change |
| Medical loss ratio | 82.4%-83.4% | 81.5%-82.5% | Improved by 0.9 points |
| SG&A expense ratio | 15.8%-16.3% | 15.6%-16.1% | Improved by 0.2 points |
| Operating income | $250 million-$450 million | $500 million-$700 million | Up $250 million, or 71% |
Company guidance is used to determine midpoint changes.
Oscar’s Chief Executive Mark Bertolini stated that the company achieved “record profitability in the first half.” He credited this performance to disciplined pricing measures and Oscar’s technology platform. Business Wire
Oscar maintained its revenue outlook. As a result, the projected profit growth reflects anticipated improvements in claims and expense margins rather than increased sales. Despite this, the guidance midpoint suggests a full-year operating margin of just 3.2%, compared to 11.5% for the first half.
| Earnings bridge — calculated estimate | Revenue | Operating income | Operating margin |
|---|---|---|---|
| First half, reported | $9.527 billion | $1.093 billion | 11.5% |
| Full year, projected midpoint | $18.850 billion | $600 million | 3.2% |
| Implied second half | $9.323 billion | -$493 million | -5.3% |
Second-half numbers are derived by taking guidance midpoints and deducting first-half reported results. These are estimated calculations rather than official company projections.
The market is pricing in a stronger yearly profit baseline and tolerating a pronounced seasonal shift. Key outstanding questions include the extent tied to seasonal claims patterns, risk recalibration, and one-time reserve movements.
Wall Street showed mixed opinions ahead of Thursday’s results. Among seven analysts tracked by Google Finance, there were two buy ratings, four holds, and one sell. The mean price target was $23.57, roughly 27% less than the $32.10 indicated in premarket trading. All ratings were assigned before the earnings announcement.
| Analyst | Firm | Date | Standardized rating | Price target | Versus $32.10 |
|---|---|---|---|---|---|
| Jessica Tassan | Piper Sandler Companies NYSE:PIPR | July 28 | Buy | $36 | +12% |
| Andrew Mok | Barclays LON:BARC | June 10 | Buy | $35 | +9% |
| Stephen Baxter | Wells Fargo NYSE:WFC | June 4 | Hold | $20 | -38% |
| Scott Fidel | Goldman Sachs Group NYSE:GS | May 11 | Hold | $22 | -31% |
| Michael Ha | Robert W. Baird | May 7 | Hold | $19 | -41% |
| Michael Craig Jones | Bank of America NYSE:BAC | May 7 | Sell | $13 | -60% |
| Jonathan Yong | UBS Group NYSE:UBS | May 7 | Hold | $20 | -38% |
| Average from seven analysts | Hold | $23.57 | -27% |
Target returns are measured based on the $32.10 premarket signal.
The company’s 8 a.m. earnings call was underway at the time of publication. Investors will look for more details linking the record results from the first half to the projected loss in second-half guidance.
Risks: Oscar is still vulnerable to shifts in medical cost projections, adjustments to ACA policy, and updates to risk adjustment. Fluctuations in membership retention and reserve forecasts may also cause significant changes in reported margins from quarter to quarter.
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