Oscar Health (NYSE:OSCR) Issues Earnings Results

Key Points

• Oscar Health reported Q3 EPS of $0.49, beating the consensus estimate of a $0.14 loss, while revenue rose 72.1% year over year to $5.14 billion, above expectations.
• The company raised its 2026 earnings-from-operations guidance for the third time, to $850 million–$950 million, citing favorable risk-adjustment results and better-than-expected utilization.
• Membership grew 27% to 2.7 million, and the medical loss ratio improved to 84%; despite the strong results, shares fell 7.3% in Friday trading.

Oscar Health (NYSE:OSCR - Get Free Report) announced its earnings results on Thursday. The company reported $0.49 earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.14) by $0.63, FiscalAI reports. Oscar Health had a return on equity of 38.45% and a net margin of 3.60%. The company had revenue of $5.14 billion for the quarter, compared to analysts' expectations of $4.69 billion. During the same quarter in the previous year, the firm earned ($0.53) earnings per share. Oscar Health's quarterly revenue was up 72.1% on a year-over-year basis.

Here are the key takeaways from Oscar Health's conference call:

• Oscar raised its 2026 earnings-from-operations guidance for the third time, to $850 million–$950 million, citing favorable risk-adjustment results and utilization that was moderately better than expected. Through nine months, the company reported $1.2 billion in net income and $1.3 billion in earnings from operations.
• Third-quarter revenue rose 70% year over year to $5.1 billion, while the medical loss ratio improved to 84% and the SG&A expense ratio fell to a company-record 14%. Management attributed the efficiency gains to pricing discipline, fixed-cost leverage, expense controls, and technology and AI initiatives.
• Membership grew 27% year over year to 2.7 million, and Oscar is entering open enrollment across 713 counties, including a new South Carolina market. The company is also expanding products such as RetireEase and CHOICE, while its Lucie platform is projected to sell about 800,000 policies in 2027.
• For 2027, management expects overall ACA marketplace membership to be roughly stable year over year while aiming to gain share; its average rate increase is about 14%, reflecting high-single-digit medical-cost trend, higher market morbidity, and some margin expansion. New eligibility checks could create enrollment friction, though Oscar says it has prepared broker tools to help manage the process.
• Management cautioned that the $250 million third-quarter revenue benefit from updated risk-adjustment data does not all flow to earnings and is maintaining conservative reserves. Outpatient utilization was elevated, and Oscar expects a normal seasonal increase in fourth-quarter MLR.

Oscar Health Trading Down 7.3%

NYSE:OSCR traded down $2.44 during trading hours on Friday, reaching $30.74. The company's stock had a trading volume of 8,874,950 shares, compared to its average volume of 4,643,670. Oscar Health has a 1 year low of $10.69 and a 1 year high of $38.50. The company has a debt-to-equity ratio of 0.21, a quick ratio of 1.09 and a current ratio of 1.09. The firm has a 50-day simple moving average of $31.81 and a 200-day simple moving average of $23.97. The firm has a market capitalization of $9.49 billion, a price-to-earnings ratio of 12.70, a PEG ratio of 0.34 and a beta of 2.56.

Key Oscar Health News

Here are the key news stories impacting Oscar Health this week:

• Positive Sentiment: Oscar reported Q3 adjusted earnings of $0.49 per share, versus analysts’ expected loss, and revenue of $5.14 billion, topping the $4.69 billion estimate and rising 72.1% year over year. Oscar Health beats Q3 earnings and revenue estimates
• Positive Sentiment: The company raised its 2026 revenue outlook to $19 billion–$19.3 billion, above the $18.64 billion FactSet estimate, and increased its full-year earnings outlook. Management cited improving medical costs and operating efficiencies as supporting margin gains, with expansion expected to contribute to 2027 growth. Q3 earnings call highlights outlook and margin gains
• Positive Sentiment: Operational indicators were also encouraging: membership increased 27.2% to 2.69 million, the medical loss ratio improved to 84.0%, and Oscar swung to a $167.3 million profit. Oscar Health Q3 revenue and membership growth
• Positive Sentiment: Zacks added OSCR to its Rank #1 (Strong Buy) growth-stocks list, reflecting favorable quantitative signals. Zacks growth stocks list
• Negative Sentiment: Piper Sandler lowered its price target from $48 to $45, although it maintained an Overweight rating. The new target still implies substantial upside from the referenced $30.74 share price. Piper Sandler rating information

Insider Transactions at Oscar Health

In other news, Director Mario Schlosser sold 31,422 shares of the stock in a transaction that occurred on Thursday, September 3rd. The stock was sold at an average price of $31.45, for a total transaction of $988,221.90. Following the completion of the sale, the director owned 449,444 shares of the company's stock, valued at approximately $14,135,013.80. This represents a 6.53% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 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. Also, CAO Victoria Baltrus sold 958 shares of the firm's stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $31.45, for a total transaction of $30,129.10. Following the completion of the sale, the chief accounting officer directly owned 213,631 shares in the company, valued at approximately $6,718,694.95. This trade represents a 0.45% decrease in their position. The disclosure for this sale is available in the SEC filing. 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 ninety days, insiders have sold 874,451 shares of company stock valued at $26,761,671. Insiders own 22.64% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities research analysts have issued reports on OSCR shares. Robert W. Baird upped their price objective on shares of Oscar Health from $27.00 to $33.00 and gave the stock a "neutral" rating in a research report on Thursday, September 17th. Raymond James Financial upped their price target on shares of Oscar Health from $34.00 to $42.00 and gave the company an "outperform" rating in a research note on Friday, September 18th. Wells Fargo & Company lifted their target price on Oscar Health from $20.00 to $27.00 and gave the company an "equal weight" rating in a report on Thursday, August 13th. The Goldman Sachs Group reiterated a "neutral" rating and set a $34.00 price target on shares of Oscar Health in a research report on Thursday, September 17th. Finally, Bank of America increased their target price on shares of Oscar Health from $28.00 to $30.00 and gave the stock an "underperform" rating in a research note on Thursday, September 17th. One investment analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $34.60.

Oscar Health Company Profile

Oscar Health, Inc is a technology-focused health insurance company that provides health plans and related services in the United States. The company primarily serves individuals and families purchasing coverage through the Affordable Care Act's health insurance marketplace, as well as small businesses and their employees.

Oscar combines health insurance products with digital tools designed to help members manage their care. Its services include online enrollment, virtual care, provider search and appointment support, care navigation, claims and benefits information, and member engagement through web and mobile applications.

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