Oscar Health lifts 2026 profit guidance, tightens cost ratio outlook
The insurer now expects earnings from operations of $600m to $800m for 2026, up from $500m to $700m, with revenue guidance unchanged
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Oscar Health raised its full year 2026 earnings guidance at its Investor Day, telling investors it now expects earnings from operations between $600 million and $800 million, up $100 million from its prior range of $500 million to $700 million.
The company also improved its expected medical loss ratio, the share of premiums paid out in claims, to between 81.0% and 82.0%, a 50 basis point improvement from its previous outlook. It reaffirmed full year 2026 total revenue guidance of $18.7 billion to $19.0 billion and kept its SG&A expense ratio guidance at between 15.6% and 16.1%.
Because revenue guidance held steady while the earnings floor moved higher, the improvement is coming from cost control rather than membership growth. Oscar has posted widening net losses over the past year, with investors watching for signs that the expiration of ACA subsidies would squeeze margins further.
The tightened cost ratio alongside a higher profit range suggests management sees less near term pressure from subsidy uncertainty and cost trends than the market had priced in. That pushes back directly against the unprofitability risk investors had been pricing into the stock.