Health insurance company Oscar Health (NYSE: OSCR) reported Q3 2026 results beating Wall Street’s revenue expectations, with revenue up 72.1% year on year to $5.14 billion. The company’s full-year revenue guidance of $19.15 billion at the midpoint came in 2.2% above analysts’ consensus estimates. Its GAAP profit of $0.49 per share was significantly above analysts’ consensus estimates.

For more on Oscar Health, read our free full research report.

“Oscar Health is on track to deliver the strongest year of financial performance in our history, and we are raising our earnings from operations outlook for a third time,” said Mark Bertolini, CEO of Oscar Health. “The ACA is the foundation of a rapidly-developing individual market in America, and Oscar Health is built to lead it. Our disciplined pricing, consumer-led products, and technology-powered approach are driving stronger economics and position us to grow market share and expand margin in 2027.”

Revenue growth

A company’s long-term revenue performance can indicate its overall quality. Any business can deliver a good quarter or two, but many enduring ones grow for years. Oscar Health’s 49.1% annualized revenue growth over the last five years was strong. Its growth surpassed the average healthcare company and shows its offerings resonate with customers.

Long-term growth matters most, but within healthcare, a half-decade historical view may miss recent innovations or disruptive industry trends. Oscar Health’s annualized revenue growth of 45.8% over the last two years is below its five-year trend, but the results still suggest healthy demand.

This quarter, Oscar Health reported strong year-on-year revenue growth of 72.1%, and its $5.14 billion in revenue beat Wall Street’s consensus estimates by 8.4%.

Looking ahead, sell-side analysts expect revenue to grow 14.7% over the next 12 months, according to S&P, a deceleration versus the last two years. Its growth trajectory remains attractive given its scale and indicates the market is pricing in success for its products and services.

Adjusted operating margin

Adjusted operating margin is a key measure of profitability. Think of it as net income (the bottom line) excluding the impact of non-recurring expenses, taxes and interest on debt – items less connected to business fundamentals.

Oscar Health was roughly breakeven when averaging the last five years of quarterly operating profits, a poor result for a healthcare business.

On the positive side, Oscar Health’s adjusted operating margin rose by 17.4 percentage points over the last five years, as its revenue growth gave it operating leverage. More recently, the company’s trajectory has remained intact, with its margin increasing by 4.8 percentage points on a two-year basis. These gains are a positive sign of continued momentum.

This quarter, Oscar Health generated an adjusted operating margin of 3.9%, up 8.2 percentage points year on year. This increase was a positive development and shows it was more efficient.

Earnings per share

Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth. For example, a company could inflate its revenue through excessive spending on advertising and promotions.

Oscar Health’s full-year EPS flipped from negative to positive over the last five years. This is a good sign and shows it’s at an inflection point.

In Q3, Oscar Health reported EPS of $0.49, up from negative $0.53 in the same quarter last year. This result easily cleared analysts’ consensus estimates, a positive outcome for shareholders. Over the next 12 months, Wall Street expects Oscar Health’s full-year EPS to shrink by 17.1% from $2.39 to $1.98, according to S&P.

Key takeaways from Oscar Health’s Q3 results

Oscar Health’s wide revenue beat stood out in Q3, and EPS also topped analysts’ consensus estimates. Those results made for a strong quarter with clear positives. Shares rose 4.7% to $36.85 immediately after the report.

Oscar Health had a solid quarter, but that alone doesn’t make the stock a buy. That decision requires considering its valuation and business quality as well as what happened in the latest quarter. For more on Oscar Health, read the full research report here (it’s free).