Oscar Health Lifts 2026 Operating Profit Outlook as Q2 Margins Expand

Oscar Health, Inc. (OSCR) has raised its 2026 operating earnings outlook to a range of $500 million to $700 million, up from its previous projection of $250 million to $450 million. The company reaffirmed its full-year revenue expectation of $18.7 billion to $19 billion, indicating that the guidance hike reflects margin expansion and expense discipline rather than top-line growth alone.

The updated outlook follows second-quarter earnings of $1.10 per share as revenues rose 70.4% year over year to $4.9 billion. Profitability gains were driven by a first-half medical loss ratio of 75%, down from 83% a year earlier, alongside a company-low administrative expense ratio of 14.2%. However, results benefited from $164 million in favorable prior-period reserve development, which may not recur in future quarters.

In the second half of the year, the insurer expects monthly member churn of 2% to 4% and retroactive disenrollment of 250,000 to 300,000 members due to program-integrity actions. Investors will watch whether margin improvements can offset anticipated seasonal cost increases and elevated open-enrollment spending in the fourth quarter.