Oscar Health shares tumbled over 10% on August 6, 2026, even as the insurer reported stellar second-quarter results and lifted its full-year operating income forecast. The decline erased early premarket gains of nearly 9% and confounded investors after the company swung to a record net profit.
For the second quarter, Oscar posted net income of $361.8 million, or $1.10 per diluted share, compared to a loss of $228.4 million, or $0.89 per share, a year earlier. Revenue leaped 70% to $4.88 billion, driven by higher membership and rates. The medical loss ratio (MLR) improved dramatically to 79.2% from 91.1% in the prior-year period, thanks to disciplined pricing and $164 million in favorable reserve development.
The company boosted its full-year operating income guidance to a range of $500 million to $700 million, up from the previous $250 million to $450 million, while maintaining its revenue outlook at $18.7–$19.0 billion. It also lowered its expected MLR and SG&A expense ratio, signaling stronger underwriting performance.
Membership grew to 2.96 million by June 30, up 46% year-over-year, despite broader contraction in the Affordable Care Act individual market. However, membership dipped slightly from 3.2 million in the first quarter, and CEO Mark Bertolini acknowledged expectations of “further market contraction.” Analysts flagged the risk of membership churn in the second half as a key concern, with Stephens’ Raj Kumar noting it “could add additional risk” to the outlook. Baird’s Michael Ha said confidence is needed that the ACA marketplace “remains structurally viable.”
The stock’s selloff, which pushed it down toward an average analyst price target of $26.09, suggests the market focused on the churn uncertainty rather than the record profit.
