Oscar Health, Inc. (NYSE:OSCR) just released its latest quarterly results and things are looking bullish. It was overall a positive result, with revenues beating expectations by 2.7% to hit US$4.9b. Oscar Health also reported a statutory profit of US$1.10, which was an impressive 212% above what the analysts had forecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Following the latest results, Oscar Health's nine analysts are now forecasting revenues of US$18.6b in 2026. This would be a substantial 21% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to shrink 9.0% to US$1.63 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$18.6b and earnings per share (EPS) of US$0.90 in 2026. Although the revenue estimates have not really changed, we can see there's been a considerable lift to earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 12% to US$28.20. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Oscar Health at US$39.00 per share, while the most bearish prices it at US$19.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Oscar Health's rate of growth is expected to accelerate meaningfully, with the forecast 47% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 39% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 2.5% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Oscar Health is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Oscar Health's earnings potential next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Oscar Health. Long-term earnings power is much more important than next year's profits. We have forecasts for Oscar Health going out to 2028, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Oscar Health , and understanding these should be part of your investment process.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.