Oscar Health (NYSE:OSCR – Get Free Report) announced its quarterly earnings results on Thursday. The company reported $1.10 EPS for the quarter, beating the consensus estimate of $0.40 by $0.70, FiscalAI reports. The company had revenue of $4.88 billion for the quarter, compared to analyst estimates of $4.73 billion. Oscar Health had a net margin of 3.60% and a return on equity of 44.96%. Oscar Health’s revenue was up 70.4% compared to the same quarter last year. During the same quarter last year, the business earned ($0.89) earnings per share.
Here are the key takeaways from Oscar Health’s conference call:
- Strong profitability and raised outlook: Oscar reported $1.1 billion in first-half earnings from operations and $1 billion in net income. Management raised full-year earnings-from-operations guidance by $250 million to $500 million–$700 million while maintaining its revenue outlook.
- Membership and operating metrics improved materially: Effectuated membership increased 46% year over year to 2.96 million, revenue rose 70% to $4.9 billion, and second-quarter MLR improved nearly 12 points to 79.2%. The SG&A ratio fell 450 basis points to a record-low 14.2%.
- Favorable medical trends provide potential upside: Inpatient, professional, and pharmacy utilization were favorable, while outpatient utilization was elevated but stable. Early 2026 morbidity data was better than pricing assumptions, although Oscar has not fully reflected that potential benefit in its guidance.
- Technology and AI are driving efficiency: Oscar said its AI-enabled claims, pharmacy, care-navigation, and member-support tools are reducing costs and improving productivity. The company expects its pharmacy analytics and related initiatives to generate tens of millions of dollars in annual savings and sees additional SG&A leverage ahead.
- Enrollment churn is expected to increase in the second half: CMS eligibility and program-integrity reviews are expected to produce disenrollments that were delayed from the second quarter, with churn potentially approaching twice the previously expected 1%–2% monthly rate. Management said the financial impact is included in guidance and primarily reflects timing rather than a fundamental change in retention.
Oscar Health Price Performance
Shares of NYSE:OSCR opened at $27.93 on Friday. The stock has a market cap of $8.42 billion, a price-to-earnings ratio of 19.95, a PEG ratio of 1.35 and a beta of 2.36. The company has a debt-to-equity ratio of 0.26, a current ratio of 1.11 and a quick ratio of 1.11. Oscar Health has a 12 month low of $10.69 and a 12 month high of $33.10. The stock’s 50 day moving average price is $28.93 and its 200 day moving average price is $20.37.
Key Headlines Impacting Oscar Health
- Positive Sentiment: Substantial earnings and revenue beat: Oscar reported quarterly EPS of $1.10, versus the $0.40–$0.43 analyst consensus, compared with a $0.89 loss in the year-ago quarter. Revenue rose 70.4% to $4.88 billion, exceeding estimates of approximately $4.73 billion. Oscar Health Inc. Q2 Earnings Beat Estimates
- Positive Sentiment: Profitability improved sharply: The insurer generated approximately $361 million of second-quarter profit and more than $1 billion in net income during the first half, helped by membership growth and easing medical costs. Oscar Health Reports Another Big Profit
- Positive Sentiment: Full-year outlook was raised: Oscar increased its 2026 revenue forecast to $18.7 billion–$19.0 billion, above the roughly $18.6 billion consensus estimate, and indicated $500 million–$700 million in earnings from operations with an 81.5%–82.5% medical-loss-ratio target. Oscar Health Signals 2026 Earnings Outlook
- Neutral Sentiment: The results reinforce Oscar’s improving profit-turnaround story, with technology and operational execution remaining important to managing a changing customer base. Oscar Health 2026 Profit Turnaround
- Negative Sentiment: Churn outlook pressured the shares: Management’s forecast for elevated member churn raised concerns about retention, future enrollment growth and whether the unusually strong earnings can be sustained. That concern reportedly outweighed the quarterly beat and guidance increase. Oscar Health Falls as Churn Forecast Overshadows Q2 Beat
Insider Transactions at Oscar Health
In other news, CFO Richard Scott Blackley sold 100,000 shares of Oscar Health stock in a transaction on Thursday, May 14th. The stock was sold at an average price of $23.16, for a total transaction of $2,316,000.00. Following the transaction, the chief financial officer directly owned 1,216,660 shares in the company, valued at approximately $28,177,845.60. This trade represents a 7.59% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Mark T. Bertolini sold 624,244 shares of the company’s stock in a transaction on Tuesday, June 30th. The shares were sold at an average price of $28.48, for a total value of $17,778,469.12. Following the completion of the sale, the chief executive officer owned 7,751,570 shares of the company’s stock, valued at approximately $220,764,713.60. This trade represents a 7.45% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders sold 3,662,466 shares of company stock valued at $105,145,815. Company insiders own 22.64% of the company’s stock.
Hedge Funds Weigh In On Oscar Health
Several large investors have recently made changes to their positions in the business. T. Rowe Price Investment Management Inc. raised its holdings in shares of Oscar Health by 11.0% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 9,217,816 shares of the company’s stock worth $132,461,000 after purchasing an additional 910,320 shares in the last quarter. Invesco Ltd. boosted its holdings in Oscar Health by 14.4% during the fourth quarter. Invesco Ltd. now owns 303,434 shares of the company’s stock worth $4,360,000 after buying an additional 38,163 shares in the last quarter. XTX Topco Ltd grew its position in Oscar Health by 16.0% in the fourth quarter. XTX Topco Ltd now owns 107,854 shares of the company’s stock worth $1,550,000 after buying an additional 14,865 shares during the last quarter. VARCOV Co. bought a new position in shares of Oscar Health in the fourth quarter valued at $688,000. Finally, Wellington Management Group LLP raised its position in shares of Oscar Health by 4.1% during the fourth quarter. Wellington Management Group LLP now owns 374,015 shares of the company’s stock worth $5,375,000 after purchasing an additional 14,590 shares during the period. Institutional investors own 75.70% of the company’s stock.
Analyst Ratings Changes
A number of equities analysts recently issued reports on the company. Wolfe Research initiated coverage on Oscar Health in a report on Tuesday, May 5th. They issued a “peer perform” rating for the company. Weiss Ratings raised Oscar Health from a “sell (d)” rating to a “sell (d+)” rating in a research note on Friday, July 10th. Robert W. Baird set a $27.00 price target on Oscar Health in a research note on Friday. Wells Fargo & Company set a $20.00 price target on Oscar Health and gave the company an “equal weight” rating in a report on Thursday, June 4th. Finally, Jefferies Financial Group upgraded shares of Oscar Health from an “underperform” rating to a “hold” rating and lifted their price objective for the company from $10.00 to $16.00 in a research note on Monday, April 20th. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Oscar Health has an average rating of “Hold” and a consensus price target of $24.00.
Get Our Latest Stock Analysis on OSCR
About Oscar Health
Oscar Health, trading on the New York Stock Exchange under the ticker OSCR, is a technology-driven health insurance company headquartered in New York, New York. Founded in 2012 by Mario Schlosser, Joshua Kushner and Kevin Nazemi, the company was built with the goal of simplifying healthcare coverage and enhancing member experience. Oscar leverages a proprietary digital platform to streamline plan enrollment, claims administration and member support, distinguishing itself in the individual, family and small group insurance markets.
The company’s primary products include on-exchange individual and family medical plans under the Affordable Care Act, off-exchange plans, as well as Medicare Advantage offerings.
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