Oscar Health beats Q1 estimates on lower medical costs, reaffirms full-year guidance

Oscar Health is soaring in premarket trading after it reported earnings results that beat Wall Street expectations and reaffirmed its full-year guidance.

For the first three months of 2026, the company reported:

• Earnings per share of $2.07, compared to the $1.11 analysts polled by FactSet were expecting.

• Revenue of $4.65 billion, higher than the $4.5 billion that was penciled in.

• A medical cost ratio of 70.5%, lower than the 73.8% the Street was expecting. The company said this was because of a “disciplined pricing strategy, claims and risk adjustment seasonality from metal and new member mix, and favorable prior period reserve development.”

For the full year, Oscar reaffirmed the guidance it gave in February:

• Revenues between $18.7 billion and $19 billion, in line with the $18.8 billion analysts are expecting.

• Its medical cost ratio to sit between 82.4% and 83.4%, also in line with the 83.3% the Street is penciling in.

The company, like most health insurers, struggled last year amid rising medical costs. Oscar’s higher-than-expected profit was driven by a sharp drop in medical costs and increased premiums alongside higher enrollment.