Oscar Health Shares Jump 12% to Five-Year High on Healthy Tailwinds
OSCR•Oscar Health shares climbed to a five-year high after the insurer cited healthy tailwinds, with membership tracking as expected and May utilization stronger than feared. CFO Scott Blackley noted a $130 million favorable adjustment from the 2025 Wakely report and flagged potential upside if 2026 market morbidity outperforms expectations.
1. Five-Year High and 2026 Outlook
Shares of Oscar Health surged 12% to a five-year peak after CFO Scott Blackley described 2026 as off to a "very strong start," with membership tracking as expected and utilization in May running better than feared. The company awaits its first 2026 Wakely report, which could further inform morbidity trends and potential guidance adjustments.
2. $130 Million Favorable Wakely Adjustment
Oscar’s final 2025 Wakely report exceeded first-quarter accruals by $130 million, reinforcing current guidance and prompting management to cite healthy tailwinds. Blackley emphasized that early industry data suggest market morbidity may come in below prior estimates, offering room for upside if trends hold.
3. Q1 Financial Performance and ACA Market Context
In the first quarter, Oscar delivered earnings per share of $2.07 versus estimates of $1.10, adjusted EBITDA of $727 million, and revenue of $4.65 billion against $4.92 billion forecasts. Membership grew 56% year-over-year to 3.17 million and the medical loss ratio improved to 70.5% from 75.4%, even as some competitors plan ACA market exits.
