TLDR
- Oscar Health posted Q2 net income of $361.8 million, or $1.10 per share, versus a loss of 89 cents a year ago
- Revenue jumped 70% year over year to $4.88 billion, beating Wall Street’s $4.73 billion estimate
- Medical loss ratio improved to 79.2%, down from 91.1% in Q2 2025
- Full-year earnings from operations guidance raised to $500 million-$700 million, up from $250 million-$450 million
- OSCR stock fell roughly 9% on Thursday despite the beat, after an 8.9% premarket spike
Oscar Health posted one of its strongest quarters on record Thursday, but the stock had other ideas.
OSCR dropped about 9% during trading on August 6, reversing a near 9% premarket gain. The stock closed at $30.11 on Wednesday. Despite that drop, the stock is still up 110% in 2026, versus 13% for the S&P 500.
The company reported Q2 earnings of $1.10 per share, crushing the analyst consensus of 40 cents. Revenue surged 70% to $4.88 billion, ahead of the $4.73 billion Wall Street had expected.
OSCAR HEALTH $OSCR Q2’26 EARNINGS HIGHLIGHTS
🔹 Revenue: $4.9B (Est. $4.75B) 🟢
🔹 EPS: $1.10 (Est. $0.39) 🟢
🔹 Adj EBITDA: $415.3M (Est. $188M) 🟢
🔹 Net Income: $361.8M (Est. $156M) 🟢FY26 Guide:
🔹 Revenue: $18.7B-$19.0B (Est. $18.62B) 🟡
🔹 Operating Income: $500M-$700M… pic.twitter.com/DSJfXJ4Nd4— Wall St Engine (@wallstengine) August 6, 2026
For the first half of 2026, Oscar reported net income of $1.04 billion, or $3.16 per share. That compares to just $46.9 million in the same period a year ago.
Medical Loss Ratio Drives the Story
The medical loss ratio fell to 79.2% in Q2, down from 91.1% in Q2 2025. That came in below Wall Street’s estimate of 81.2%, which is a strong result. The company credited disciplined pricing and $164 million in favorable prior period reserve development.
Oscar raised its full-year earnings from operations forecast to a range of $500 million to $700 million, up from a prior range of $250 million to $450 million. It kept its total revenue outlook steady at $18.7 billion to $19 billion.
Membership grew to 2.9 million by June 30, up 46% from a year prior. That comes despite overall ACA enrollment falling by around three million nationally after temporary federal subsidies expired late last year.
Rivals CVS Health’s Aetna exited the ACA individual market this year. Cigna said it will leave in 2027. Oscar has moved in the opposite direction.
Membership Churn Raises a Flag
So why did the stock fall? Analyst Raj Kumar of Stephens pointed to the risk of membership churn in the back half of the year as a likely factor.
Membership had already dipped slightly from 3.2 million at March 31 to 2.96 million at June 30. CEO Mark Bertolini acknowledged on the earnings call that the company expects “further market contraction.”
Kumar noted that potential churn “could add additional risk” to the outlook. For Oscar, unlike larger diversified insurers, the ACA is its entire business.
Baird analyst Michael Ha called the results “an important proof point for the earnings thesis,” but added that owning the stock requires confidence that the ACA marketplace “remains structurally viable as enrollment and market composition evolve.”
The average analyst rating on OSCR is Hold, with an average price target of $26.09, according to FactSet.
Bertolini said the company is entering the second half of 2026 “from a position of strength, with the technology, scale, and operating discipline to deliver profitable growth.”
The average analyst price target of $26.09 sits below where the stock was trading before Thursday’s selloff.
Stop guessing and start investing with confidence. KnockoutStocks gives you the AI insights, market intelligence, and stock research you need to spot opportunities, cut through the noise, and make smarter investment decisions — all in one powerful platform.
Sign up today and get 50% OFF full access to our premium stock picks.
Simply use coupon code SPECIAL50 at checkout to claim your exclusive discount.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
