Oscar Health raises its 2026 outlook for earnings from operations to $850m to $950m, from $600m to $800m previously. It also lifts its revenue outlook to $19.0bn to $19.3bn, from $18.7bn to $19.0bn.

The guidance follows a third quarter in which revenue came in at $5.14bn against $4.82bn expected. Earnings per share were $0.49 on a GAAP basis, $0.71 better than expected.

The cost guidance moves the same way. Oscar now expects a medical loss ratio, the share of premiums spent on medical claims, of 80.5% to 81.5%, from 81.0% to 82.0% before. Its SG&A expense ratio, a measure of overhead, is now seen at 15.1% to 15.6%, from 15.6% to 16.1%.

Lower claims costs and lower overhead alongside higher revenue and profit targets suggest the pricing discipline management describes is showing up in underwriting results. These are management's own forecasts, but the mix points to company execution as the driver.

CEO Mark Bertolini said disciplined pricing, consumer-led products and technology-powered execution are driving stronger economics. He said they position Oscar to grow market share and expand margin in 2027.

© Raydn · raydn.us