Oscar Health's 2026 Outlook Remains Optimistic
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 51 minutes ago
0mins
Source: stocktwits
- Strong Start to 2026: CFO Scott Blackley stated that 2026 is off to a strong start with membership tracking as expected and May healthcare utilization performing better than anticipated, indicating resilience and potential growth opportunities for the company in the market.
- Financial Performance Exceeds Expectations: Oscar Health reported a first-quarter EPS of $2.07, surpassing the $1.10 estimate, while revenue reached $4.65 billion, although below the $4.92 billion forecast, with adjusted EBITDA hitting $727 million, showcasing enhanced profitability.
- Market Opportunities Amid Challenges: Despite expectations of a 20% to 30% contraction in the ACA market, Blackley highlighted competitor withdrawals as growth opportunities, particularly in overlapping markets, which could lead to increased market share by 2027.
- Investor Sentiment Extremely Bullish: According to Stocktwits, retail sentiment for OSCR is extremely bullish, with a 1,283% surge in message volume over 24 hours, reflecting strong market confidence in Oscar's future performance.
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Analyst Views on OSCR
Wall Street analysts forecast OSCR stock price to fall
8 Analyst Rating
1 Buy
4 Hold
3 Sell
Hold
Current: 24.510
Low
11.00
Averages
15.75
High
25.00
Current: 24.510
Low
11.00
Averages
15.75
High
25.00
About OSCR
Oscar Health, Inc. is a healthcare technology company built around a full stack technology platform. The Company's offerings include its insurance business and +Oscar Platform. Its health plans are offered in the individual market. The individual market primarily consists of policies purchased by individuals and families through health insurance marketplaces, established by the ACA and operated by the federal government, as well as other marketplaces operated by individual states. Individuals and families may also purchase policies in the individual market off-exchange. Employees whose employers have chosen to offer an Individual Coverage Health Reimbursement Arrangement (ICHRA) are also able to purchase its health plans. It offers health plans in the individual market under the five metal plan categories defined by the ACA: Catastrophic, Bronze, Silver, Gold, and Platinum. Through the +Oscar platform, the Company deploys its technology to help others throughout the healthcare system.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Apple Launches Revamped Siri AI Assistant at WWDC
- Siri AI Upgrade: At WWDC, Apple unveiled a revamped Siri AI assistant powered in part by Google Gemini technology, designed to handle complex tasks across devices, enhancing user information retrieval efficiency, although the stock fell over 1% after reaching an all-time high.
- Oscar Health Growth Outlook: Oscar Health reaffirmed its 2026 revenue forecast of $18.7 billion to $19 billion, with the CFO noting a strong start to the fiscal year supported by stable membership trends and favorable industry data, leading to a five-year high stock price of $27.59 and a shift to 'extremely bullish' retail sentiment.
- Eli Lilly Market Leadership: Eli Lilly's stock hit a record high of $1,182.73 following positive late-stage trial results for Foundayo, its oral obesity drug, showcasing competitive advantages in Type 2 diabetes treatment, with plans to seek regulatory approval for this indication.
- Stock Performance Review: Year-to-date, AAPL and LLY stocks have gained nearly 9% and 7%, respectively, while OSCR stock surged 90%, reflecting investor enthusiasm driven by developments in artificial intelligence and encouraging healthcare data, propelling all three companies to fresh 52-week highs.
See More
Oscar Health's 2026 Outlook Remains Optimistic
- Strong Start to 2026: CFO Scott Blackley stated that 2026 is off to a strong start with membership tracking as expected and May healthcare utilization performing better than anticipated, indicating resilience and potential growth opportunities for the company in the market.
- Financial Performance Exceeds Expectations: Oscar Health reported a first-quarter EPS of $2.07, surpassing the $1.10 estimate, while revenue reached $4.65 billion, although below the $4.92 billion forecast, with adjusted EBITDA hitting $727 million, showcasing enhanced profitability.
- Market Opportunities Amid Challenges: Despite expectations of a 20% to 30% contraction in the ACA market, Blackley highlighted competitor withdrawals as growth opportunities, particularly in overlapping markets, which could lead to increased market share by 2027.
- Investor Sentiment Extremely Bullish: According to Stocktwits, retail sentiment for OSCR is extremely bullish, with a 1,283% surge in message volume over 24 hours, reflecting strong market confidence in Oscar's future performance.
See More
Oscar Health Shares Surge After Wells Fargo Upgrade
- Upgrade Impact: Wells Fargo upgraded Oscar Health from Underweight to Equal Weight, with analyst Stephen Baxter expressing increased confidence in the Affordable Care Act marketplace, leading to a stock price surge that indicates a more optimistic market outlook for the company.
- Improved Market Trends: Baxter noted that despite poor long-term visibility, better-than-expected enrollment and morbidity trends have bolstered his confidence in the 2026 ACA Marketplace forecasts, reflecting the company's proactive adjustments in pricing strategies.
- Strong Florida Performance: Florida, which accounts for approximately 64% of Oscar's premium revenue, has experienced only a 13.5% year-over-year decline in membership, alongside a 370bps year-over-year improvement in the medical loss ratio, showcasing the company's resilience and potential in this key market.
- Target Price Increase: The analyst raised the per-share target price for Oscar Health from $11 to $20, reflecting enhanced confidence in the company's future profitability, although he cautioned that uncertainty in the market is expected to remain high beyond 2026.
See More
Investment Comparison: Oscar Health vs. UnitedHealth
- Oscar Health Growth Potential: Oscar Health reported approximately $11.7 billion in revenue for FY 2025, reflecting a 27.5% increase with nearly 3.2 million members, despite a net loss of about $443.2 million, indicating both challenges and opportunities in a rapidly growing market.
- UnitedHealth Stability: UnitedHealth generated nearly $447.6 billion in revenue for FY 2025, an 11.8% increase, with a net income of approximately $12.1 billion and a net margin of 2.7%, showcasing its leadership through a vast customer base and diversified services.
- Risks and Challenges: Oscar Health faces significant risks from changes to the Affordable Care Act, particularly regarding federal funding and premium tax credits, while UnitedHealth must effectively manage medical costs and cybersecurity risks to maintain its market position and profitability.
- Valuation Comparison: Oscar Health has a forward P/E ratio of 25.8x, lower than UnitedHealth's 20.6x, while its P/S ratio stands at 0.5x, indicating relative undervaluation amidst high growth potential, prompting investors to weigh stability against growth opportunities.
See More
Investment Comparison: Oscar Health vs. UnitedHealth Group
- Revenue Growth Comparison: Oscar Health reported approximately $11.7 billion in revenue for FY 2025, reflecting a 27.5% increase despite a net loss of about $443.2 million, indicating its rapid expansion potential in the individual health insurance market.
- Market Scale and Risks: UnitedHealth Group achieved nearly $447.6 billion in revenue for FY 2025, an 11.8% increase, with its vast customer base and diversified revenue streams providing stability, yet it faces concentration risk from the Centers for Medicare & Medicaid Services.
- Financial Health Metrics: Oscar Health's debt-to-equity ratio stands at approximately 0.4, indicating a conservative leverage level, while UnitedHealth's ratio is around 0.8, suggesting a relative reliance on debt financing that may impact liquidity.
- Investor Choice Dilemma: Investors weighing Oscar Health against UnitedHealth must navigate the trade-off between stability and growth potential, as Oscar Health, being a newer entrant, presents higher risks but also the promise of greater returns through its innovative digital service model.
See More
Oscar Health: Potential in the Health Insurance Market
- Market Share Growth: Oscar Health's total paying members reached 3.2 million last quarter, reflecting over a 50% increase from 2 million a year ago, indicating significant market share gains in the ACA sector and positioning the company strongly in the rapidly growing health insurance market.
- Revenue Expectations Rise: Oscar Health is guiding for $19 billion in revenue at the high end for 2026, and if it can reach 10 million members, annual premiums could exceed $50 billion, presenting substantial revenue growth potential, especially amid rising healthcare costs.
- Technology-Driven Profitability: The company generated $700 million in operating income last quarter, with expectations of $250 million to $450 million in operating earnings for 2026, and as Oscar Health scales and improves technological efficiencies, its profitability is expected to significantly enhance in the coming years.
- Investor Confidence Boost: With a current market cap of $6.6 billion and a price-to-earnings ratio of 15 based on 2026 earnings guidance, Oscar Health demonstrates strong potential for profit growth over the next decade, attracting interest from long-term investors.
See More
Apple Launches Revamped Siri AI Assistant at WWDC
- Siri AI Upgrade: At WWDC, Apple unveiled a revamped Siri AI assistant powered in part by Google Gemini technology, designed to handle complex tasks across devices, enhancing user information retrieval efficiency, although the stock fell over 1% after reaching an all-time high.
- Oscar Health Growth Outlook: Oscar Health reaffirmed its 2026 revenue forecast of $18.7 billion to $19 billion, with the CFO noting a strong start to the fiscal year supported by stable membership trends and favorable industry data, leading to a five-year high stock price of $27.59 and a shift to 'extremely bullish' retail sentiment.
- Eli Lilly Market Leadership: Eli Lilly's stock hit a record high of $1,182.73 following positive late-stage trial results for Foundayo, its oral obesity drug, showcasing competitive advantages in Type 2 diabetes treatment, with plans to seek regulatory approval for this indication.
- Stock Performance Review: Year-to-date, AAPL and LLY stocks have gained nearly 9% and 7%, respectively, while OSCR stock surged 90%, reflecting investor enthusiasm driven by developments in artificial intelligence and encouraging healthcare data, propelling all three companies to fresh 52-week highs.
See More
Oscar Health's 2026 Outlook Remains Optimistic
- Strong Start to 2026: CFO Scott Blackley stated that 2026 is off to a strong start with membership tracking as expected and May healthcare utilization performing better than anticipated, indicating resilience and potential growth opportunities for the company in the market.
- Financial Performance Exceeds Expectations: Oscar Health reported a first-quarter EPS of $2.07, surpassing the $1.10 estimate, while revenue reached $4.65 billion, although below the $4.92 billion forecast, with adjusted EBITDA hitting $727 million, showcasing enhanced profitability.
- Market Opportunities Amid Challenges: Despite expectations of a 20% to 30% contraction in the ACA market, Blackley highlighted competitor withdrawals as growth opportunities, particularly in overlapping markets, which could lead to increased market share by 2027.
- Investor Sentiment Extremely Bullish: According to Stocktwits, retail sentiment for OSCR is extremely bullish, with a 1,283% surge in message volume over 24 hours, reflecting strong market confidence in Oscar's future performance.
See More
Oscar Health Shares Surge After Wells Fargo Upgrade
- Upgrade Impact: Wells Fargo upgraded Oscar Health from Underweight to Equal Weight, with analyst Stephen Baxter expressing increased confidence in the Affordable Care Act marketplace, leading to a stock price surge that indicates a more optimistic market outlook for the company.
- Improved Market Trends: Baxter noted that despite poor long-term visibility, better-than-expected enrollment and morbidity trends have bolstered his confidence in the 2026 ACA Marketplace forecasts, reflecting the company's proactive adjustments in pricing strategies.
- Strong Florida Performance: Florida, which accounts for approximately 64% of Oscar's premium revenue, has experienced only a 13.5% year-over-year decline in membership, alongside a 370bps year-over-year improvement in the medical loss ratio, showcasing the company's resilience and potential in this key market.
- Target Price Increase: The analyst raised the per-share target price for Oscar Health from $11 to $20, reflecting enhanced confidence in the company's future profitability, although he cautioned that uncertainty in the market is expected to remain high beyond 2026.
See More
Investment Comparison: Oscar Health vs. UnitedHealth
- Oscar Health Growth Potential: Oscar Health reported approximately $11.7 billion in revenue for FY 2025, reflecting a 27.5% increase with nearly 3.2 million members, despite a net loss of about $443.2 million, indicating both challenges and opportunities in a rapidly growing market.
- UnitedHealth Stability: UnitedHealth generated nearly $447.6 billion in revenue for FY 2025, an 11.8% increase, with a net income of approximately $12.1 billion and a net margin of 2.7%, showcasing its leadership through a vast customer base and diversified services.
- Risks and Challenges: Oscar Health faces significant risks from changes to the Affordable Care Act, particularly regarding federal funding and premium tax credits, while UnitedHealth must effectively manage medical costs and cybersecurity risks to maintain its market position and profitability.
- Valuation Comparison: Oscar Health has a forward P/E ratio of 25.8x, lower than UnitedHealth's 20.6x, while its P/S ratio stands at 0.5x, indicating relative undervaluation amidst high growth potential, prompting investors to weigh stability against growth opportunities.
See More
Investment Comparison: Oscar Health vs. UnitedHealth Group
- Revenue Growth Comparison: Oscar Health reported approximately $11.7 billion in revenue for FY 2025, reflecting a 27.5% increase despite a net loss of about $443.2 million, indicating its rapid expansion potential in the individual health insurance market.
- Market Scale and Risks: UnitedHealth Group achieved nearly $447.6 billion in revenue for FY 2025, an 11.8% increase, with its vast customer base and diversified revenue streams providing stability, yet it faces concentration risk from the Centers for Medicare & Medicaid Services.
- Financial Health Metrics: Oscar Health's debt-to-equity ratio stands at approximately 0.4, indicating a conservative leverage level, while UnitedHealth's ratio is around 0.8, suggesting a relative reliance on debt financing that may impact liquidity.
- Investor Choice Dilemma: Investors weighing Oscar Health against UnitedHealth must navigate the trade-off between stability and growth potential, as Oscar Health, being a newer entrant, presents higher risks but also the promise of greater returns through its innovative digital service model.
See More
Oscar Health: Potential in the Health Insurance Market
- Market Share Growth: Oscar Health's total paying members reached 3.2 million last quarter, reflecting over a 50% increase from 2 million a year ago, indicating significant market share gains in the ACA sector and positioning the company strongly in the rapidly growing health insurance market.
- Revenue Expectations Rise: Oscar Health is guiding for $19 billion in revenue at the high end for 2026, and if it can reach 10 million members, annual premiums could exceed $50 billion, presenting substantial revenue growth potential, especially amid rising healthcare costs.
- Technology-Driven Profitability: The company generated $700 million in operating income last quarter, with expectations of $250 million to $450 million in operating earnings for 2026, and as Oscar Health scales and improves technological efficiencies, its profitability is expected to significantly enhance in the coming years.
- Investor Confidence Boost: With a current market cap of $6.6 billion and a price-to-earnings ratio of 15 based on 2026 earnings guidance, Oscar Health demonstrates strong potential for profit growth over the next decade, attracting interest from long-term investors.
See More
