Oscar Health $OSCR ( ▲ 1.38% ) shares moved higher in premarket trading after the insurer delivered upbeat full year guidance that helped investors look past a weaker than expected fourth quarter.
The company posted a larger loss and softer revenue for Q4, but its outlook for 2026 painted a much stronger picture of growth and improving profitability.
A Tough Quarter to Close the Year
For the final three months of 2025, Oscar $OSCR reported a loss of $1.24 per share, wider than the $0.89 loss analysts were expecting. Revenue came in at $2.8 billion, missing Wall Street estimates of $3.1 billion.
Medical costs were also higher than hoped. The company posted a medical cost ratio of 95.4%, meaning a larger share of premium dollars went toward paying claims than analysts had forecast.
Guidance Changes the Conversation
What really caught investors’ attention was Oscar’s outlook for 2026. The company expects revenue between $18.7 billion and $19 billion, far above the $12.4 billion analysts had penciled in.
Oscar $OSCR also projected a medical cost ratio between 82.4% and 83.4%, better than the 85.5% analysts were expecting. Lower projected medical costs suggest the company believes it can manage claims more efficiently next year.
Industry Pressures Still Linger
Health insurers have faced a tough environment as medical costs rise across the system. Oscar $OSCR, which focuses on Affordable Care Act marketplace plans, has also been dealing with the impact of tax credits for those plans expiring in January.
Even with those headwinds, the company’s forward guidance gave investors confidence that performance could improve meaningfully in 2026.