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Primed to grow right now with long-term potential gains of 2X and more.

Primed to grow right now with long-term potential gains of 2X and more.

This oil and natural gas company has seen the Zacks Consensus Estimate for its current year earnings increase 241.2% over the last 60 days.

This oil and natural gas company has seen the Zacks Consensus Estimate for its current year earnings increase 241.2% over the last 60 days.

SPCX briefly reclaimed a $2 trillion market cap as Starlink growth, launch dominance and AI ambitions fueled investor optimism despite execution risks.

SPCX briefly reclaimed a $2 trillion market cap as Starlink growth, launch dominance and AI ambitions fueled investor optimism despite execution risks.

The consensus for today is expected to show August jobs up 55,000 (up 53K in the private sector and 2K in the public sector), while the unemployment rate is forecast at 4.2%.

The consensus for today is expected to show August jobs up 55,000 (up 53K in the private sector and 2K in the public sector), while the unemployment rate is forecast at 4.2%.

Stocks priced under $10 can present appealing entry points for investors seeking outsized returns. Here's our list of the best cheap stocks right now.

Stocks priced under $10 can present appealing entry points for investors seeking outsized returns. Here's our list of the best cheap stocks right now.

Gold stocks, or shares of companies involved in mining or streaming the precious metal, offer investors a way to participate indirectly in gold price booms.

Gold stocks, or shares of companies involved in mining or streaming the precious metal, offer investors a way to participate indirectly in gold price booms.

Biotech stocks are one of the most dynamic sectors in the market, combining scientific innovation with substantial financial opportunity. Here are some top current buys.

Biotech stocks are one of the most dynamic sectors in the market, combining scientific innovation with substantial financial opportunity. Here are some top current buys.

Amazon, AbbVie and Alibaba face contrasting growth drivers and challenges, from AI investment and drug launches to costly spending cycles.

Amazon, AbbVie and Alibaba face contrasting growth drivers and challenges, from AI investment and drug launches to costly spending cycles.

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Zacks #1 Rank Additions Company (Symbol) Research Caterpillar (CAT) Analyst Report Dell Technologies (DELL) Analyst Report Robinhood Markets (HOOD) Analyst Report MongoDB (MDB) Analyst Report Aurora Cannabis (ACB) Snapshot Report Investment Ideas Earnings Analysis More Analysis Reported Earnings Surprises View All Positive Negative Symbol Time Expected Reported %Surprise KNOP 16:24 -0.03 0.10 +433.33 DLTH 05:49 -0.05 0.06 +220.00 PL 16:08 -0.02 0.02 +200.00 EGAN 16:19 0.03 0.08 +166.67 AOUT 16:15 -0.24 0.03 +112.50 EPS Positive Surprises for Sep 04, 2026

Symbol Time Expected Reported %Surprise CURV 16:06 -0.03 -0.04 -33.33 VBNK 07:04 0.34 0.27 -20.59 LE 06:46 0.10 0.09 -10.00 CPB 07:15 0.40 0.39 -2.50 EPS Negative Surprises for Sep 04, 2026

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Stock to Watch: HealthEquity (HQY - Free Report) Draper, UT-headquartered HealthEquity provides integrated solutions for healthcare account management, health reimbursement arrangement and flexible spending accounts for health plans, insurance companies and third-party administrators in the United States.

HQY is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

Additionally, the company could be a top pick for growth investors. HQY has a Growth Style Score of B, forecasting year-over-year earnings growth of 18% for the current fiscal year.

Two analysts revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.01 to $4.72 per share. HQY also boasts an average earnings surprise of +8.7%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, HQY should be on investors' short list.

Highlights of the second quarter include:

Net income increased 10% to $65.6 million, and net income margin increased to 19% from 18% last year.Adjusted EBITDA increased 11% to $167.0 million, and Adjusted EBITDA margin increased to 48% from 46% last year.Revenue increased 8% to $350.7 million.Net income per diluted share rose 15% to $0.78 from $0.68 one year ago, and non-GAAP net income per diluted share increased 15% to $1.24.Total HSA Assets grew 14% to $37.9 billion.Returned $108.1 million to shareholders through stock repurchases.
DRAPER, Utah, Aug. 27, 2026 (GLOBE NEWSWIRE) -- HealthEquity, Inc. (NASDAQ: HQY) ("HealthEquity" or the "Company"), the largest independent health savings account ("HSA") custodian by account volume and a leader in consumer-directed benefits ("CDBs"), today announced financial results for its second quarter ended July 31, 2026.

"HealthEquity delivered a record-setting second quarter, with record Adjusted EBITDA margin of 48%, record HSA accounts of 10.7 million and record HSA Assets of nearly $38 billion," said Scott Cutler, President and CEO of HealthEquity. "These results reflect strong execution across the business and the durability of our model as growth comes from more places, member relationships deepen and technology-enabled efficiency improves how we serve members and clients. This momentum gives us confidence to raise fiscal 2027 guidance and enter the second half focused on scaling efficiently and creating long-term value."

Second quarter financial results

Revenue for the second quarter ended July 31, 2026 was $350.7 million, an increase of 8% compared to $325.8 million for the second quarter ended July 31, 2025. Revenue this quarter included: service revenue of $124.4 million, custodial revenue of $175.9 million, and interchange revenue of $50.4 million.

Net income was $65.6 million, or $0.78 per diluted share, for the second quarter ended July 31, 2026, compared to $59.9 million, or $0.68 per diluted share, for the second quarter ended July 31, 2025. Net income margin was 19% for the second quarter ended July 31, 2026, compared to 18% for the second quarter ended July 31, 2025.

Non-GAAP net income was $103.8 million, or $1.24 per diluted share, for the second quarter ended July 31, 2026, compared to $94.6 million, or $1.08 per diluted share, for the second quarter ended July 31, 2025.

Adjusted EBITDA was $167.0 million for the second quarter ended July 31, 2026, an increase of 11% compared to the second quarter ended July 31, 2025. Adjusted EBITDA was 48% of revenue, compared to 46% for the second quarter ended July 31, 2025.

Account and asset metrics

New HSAs from sales were 202 thousand, an increase of 24% compared to the second quarter ended July 31, 2025. HSAs as of July 31, 2026 were 10.7 million, an increase of 8% year over year, including 0.9 million HSAs with investments, an increase of 20% year over year. Total Accounts as of July 31, 2026 were 17.8 million, including 7.0 million complementary CDBs.

Total HSA Assets as of July 31, 2026 were $37.9 billion, an increase of 14% year over year. Total HSA Assets included $17.4 billion of HSA cash and $20.6 billion of HSA investments. Client-held funds, which are deposits held on behalf of our Clients to facilitate administration of our CDBs, and from which we generate custodial revenue, were $0.9 billion as of July 31, 2026.

Stock repurchase program

The Company repurchased 1.2 million shares of its common stock for $108.1 million during the second quarter ended July 31, 2026. As of July 31, 2026, $948.4 million of common stock remained authorized for repurchase under the stock repurchase program.

Business outlook

For the fiscal year ending January 31, 2027, management is raising guidance and now expects revenues of $1.411 billion to $1.421 billion. Its outlook for net income is between $242 million and $248 million, resulting in net income of $2.88 to $2.96 per diluted share. Its outlook for non-GAAP net income, calculated using the method described below, is between $392 million and $398 million, resulting in non-GAAP net income per diluted share of $4.66 to $4.73 (based on an estimated 84 million diluted weighted-average shares outstanding). Management expects Adjusted EBITDA of $628 million to $636 million.

See “Non-GAAP financial information” below for definitions of our Adjusted EBITDA and non-GAAP net income. A reconciliation of the non-GAAP financial measures used throughout this release to the most comparable GAAP financial measures is included with the financial tables at the end of this release.

Conference call

HealthEquity management will host a conference call at 8:30 a.m. (Eastern Time) on Thursday, August 27, 2026 to discuss the fiscal 2027 second quarter financial results. The conference call will be accessible by dialing 1-833-630-1956, or 1-412-317-1837 for international callers, and referencing conference ID "HealthEquity." A live audio webcast of the call will be available on the investor relations section of our website at http://ir.healthequity.com.

Non-GAAP financial information

To supplement our financial information presented on a GAAP basis, we disclose non-GAAP financial measures, including Adjusted EBITDA, non-GAAP net income, and non-GAAP net income per diluted share.

Adjusted EBITDA is earnings before interest, taxes, depreciation and amortization, amortization of acquired intangible assets, stock-based compensation expense, merger integration expenses, acquisition costs, gains and losses on equity securities, amortization of incremental costs to obtain a contract, costs associated with unused office space, and certain other non-operating items.Non-GAAP net income is calculated by adding back to GAAP net income before income taxes the following items: amortization of acquired intangible assets, stock-based compensation expense, merger integration expenses, acquisition costs, gains and losses on equity securities, costs associated with unused office space, and losses on extinguishment of debt, and subtracting a non-GAAP tax provision using a normalized non-GAAP tax rate.Non-GAAP net income per diluted share is calculated by dividing non-GAAP net income by diluted weighted-average shares outstanding. Non-GAAP financial measures should be considered in addition to results prepared in accordance with GAAP and should not be considered as a substitute for, or superior to, GAAP results. We believe that these non-GAAP financial measures provide useful information to management and investors regarding certain financial and business trends relating to the Company's financial condition and results of operations. The Company cautions investors that non-GAAP financial information, by its nature, departs from GAAP; accordingly, its use can make it difficult to compare current results with results from other reporting periods and with the results of other companies. In addition, while amortization of acquired intangible assets is being excluded from non-GAAP financial measures, the revenue generated from those acquired intangible assets is not excluded. Whenever we use these non-GAAP financial measures, we provide a reconciliation of the applicable non-GAAP financial measure to the most closely applicable GAAP financial measure. Investors are encouraged to review the related GAAP financial measures and the reconciliation of the non-GAAP financial measures to their most directly comparable GAAP financial measure as detailed in the tables below.

About HealthEquity

HealthEquity and its subsidiaries administer HSAs and other consumer-directed benefits for more than 17 million accounts in partnership with employers, benefits advisors, and health and retirement plan providers who share our mission to save and improve lives by empowering healthcare consumers. For more information, visit www.healthequity.com.

Forward-looking statements

This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our industry, business strategy, plans, goals and expectations concerning our markets and market position, product expansion, future operations, expenses and other results of operations, revenue, margins, profitability, acquisition synergies, future efficiencies, tax rates, capital expenditures, liquidity and capital resources and other financial and operating information. When used in this discussion, the words “may,” “believes,” “intends,” “seeks,” “aims,” “anticipates,” “plans,” “estimates,” “expects,” “should,” “assumes,” “continues,” “could,” “will,” “future” and the negative of these or similar terms and phrases are intended to identify forward-looking statements in this press release.

Forward-looking statements reflect our current expectations regarding future events, results or outcomes. These expectations may or may not be realized. Although we believe the expectations reflected in the forward-looking statements are reasonable, we can give you no assurance these expectations will prove to be correct. Some of these expectations may be based upon assumptions, data or judgments that prove to be incorrect. Actual events, results and outcomes may differ materially from our expectations due to a variety of known and unknown risks, uncertainties and other factors. Although it is not possible to identify all of these risks and factors, they include, among others, risks related to the following:

our ability to adequately place and safeguard our custodial assets, or the failure of any of our depository or insurance company partners;our ability to compete effectively in a rapidly evolving healthcare and benefits administration industry;our dependence on the continued availability and benefits of tax-advantaged HSAs and other CDBs;the impact of fraudulent account activity involving our member accounts or our third-party service providers on our reputation and financial results;our ability to successfully identify, acquire and integrate additional portfolio purchases or acquisition targets;the significant competition we face and may face in the future, including from those with greater resources than us;our reliance on the availability and performance of our technology and communications systems;potential future cybersecurity breaches of our technology and communications systems and other data interruptions, including resulting costs and liabilities, reputational damage and loss of business;the current uncertain healthcare environment, including changes in healthcare programs and expenditures and related regulations;our ability to comply with current and future privacy, healthcare, tax, ERISA, investment adviser and other laws applicable to our business;our reliance on partners and third-party vendors for distribution and important services;our ability to develop and implement updated features for our technology platforms and communications systems; andour reliance on our management team and key team members. For a detailed discussion of these and other risk factors, please refer to the risks detailed in our filings with the Securities and Exchange Commission, including, without limitation, our Annual Report on Form 10-K for the fiscal year ended January 31, 2026 and subsequent periodic and current reports. Past performance is not necessarily indicative of future results. We undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.

Investor Relations Contact
Richard Putnam
801-727-1000
[email protected]

HealthEquity, Inc. and subsidiaries
Condensed consolidated balance sheets
       (in thousands, except par value)July 31, 2026
  January 31, 2026
  (unaudited)
   Assets   Current assets   Cash and cash equivalents$                       256,003  $                       318,927 Accounts receivable, net of allowance for doubtful accounts of $1,067 and $924 as of July 31,
2026 and January 31, 2026, respectively                         122,193                           123,696 Prepaid expenses and other current assets                           82,008                             69,658 Total current assets                         460,204                           512,281 Property and equipment, net                             4,823                               3,177 Operating lease right-of-use assets                           32,874                             36,310 Intangible assets, net                      1,047,797                        1,097,172 Goodwill                       1,648,145                         1,648,145 Other assets                           77,520                             83,247 Total assets$                    3,271,363  $                    3,380,332 Liabilities and stockholders’ equity   Current liabilities   Accounts payable$                          8,592  $                        12,159 Accrued compensation                           37,913                             60,392 Accrued liabilities                           97,300                             74,388 Operating lease liabilities                             9,970                               9,911 Total current liabilities                          153,775                            156,850 Long-term liabilities   Long-term debt, net of issuance costs                          931,062                            957,379 Operating lease liabilities, non-current                           29,984                             34,190 Other long-term liabilities                           73,999                             31,007 Deferred tax liability                           92,433                             93,710 Total long-term liabilities                      1,127,478                        1,116,286 Total liabilities                      1,281,253                        1,273,136 Commitments and contingencies   Stockholders’ equity   Preferred stock, $0.0001 par value, 100,000 shares authorized, no shares issued and
outstanding as of July 31, 2026 and January 31, 2026, respectively                                   —                                     — Common stock, $0.0001 par value, 900,000 shares authorized, 82,909 and 85,007 shares
issued and outstanding as of July 31, 2026 and January 31, 2026, respectively                                    8                                      8 Additional paid-in capital                       1,896,571                         1,916,989 Accumulated earnings                         162,583                           195,906 Accumulated other comprehensive loss                          (69,052)                             (5,707)Total stockholders’ equity                      1,990,110                        2,107,196 Total liabilities and stockholders’ equity$                    3,271,363  $                    3,380,332  HealthEquity, Inc. and subsidiaries
Condensed consolidated statements of operations (unaudited)    Three months ended July 31,
  Six months ended July 31,
 (in thousands, except per share data) 2026   2025   2026   2025 Revenue       Service revenue$              124,444  $              117,873  $              247,376  $              237,657 Custodial revenue                 175,936                   159,876                   350,270                   316,331 Interchange revenue                  50,352                    48,086                   107,727                   102,691 Total revenue                 350,732                   325,835                   705,373                   656,679 Cost of revenue       Service costs                  73,170                    75,156                   151,496                   163,161 Custodial costs                  12,083                    11,137                    23,738                    21,884 Interchange costs                    7,525                      6,947                    15,873                    14,728 Total cost of revenue                  92,778                    93,240                   191,107                   199,773 Gross profit                 257,954                   232,595                   514,266                   456,906 Operating expenses       Sales and marketing                  23,215                    19,922                    50,048                    45,906 Technology and development                  73,923                    64,804                   141,690                   126,240 General and administrative                  34,869                    29,990                    66,000                    55,526 Amortization of acquired intangible assets                  26,286                    27,001                    52,801                    54,003 Merger integration                       971                      1,266                      2,084                      2,541 Total operating expenses                 159,264                   142,983                   312,623                   284,216 Income from operations                  98,690                    89,612                   201,643                   172,690 Other expense       Interest expense                 (12,605)                  (14,955)                  (25,193)                  (29,813)Other income, net                    1,780                      3,391                      3,828                      6,124 Total other expense                 (10,825)                  (11,564)                  (21,365)                  (23,689)Income before income taxes                  87,865                    78,048                   180,278                   149,001 Income tax provision                  22,221                    18,194                    45,216                    35,232 Net income$               65,644  $               59,854  $              135,062  $              113,769 Net income per share:       Basic$                   0.79  $                   0.69  $                   1.61  $                   1.31 Diluted$                   0.78  $                   0.68  $                   1.60  $                   1.29 Weighted-average number of shares used in computing net income per share:       Basic                  83,374                    86,550                    83,885                    86,601 Diluted                  84,014                    87,746                    84,578                    88,153  HealthEquity, Inc. and subsidiaries
Condensed consolidated statements of comprehensive income (unaudited)    Three months ended July 31, Six months ended July 31,(in thousands) 2026   2025  2026   2025Net income$               65,644  $               59,854 $              135,062  $              113,769Other comprehensive income (loss)       Cash flow hedges       Net unrealized gains (losses)                 (37,322)                        203                  (63,219)                        203Reclassification of net (gains) losses included in net income                         22                            —                       (126)                           —Net change, net of income tax benefit (expense) of $12,135, $(70), $20,598, and $(70), respectively                 (37,300)                        203                  (63,345)                        203Total other comprehensive income (loss)                 (37,300)                        203                  (63,345)                        203Comprehensive income$               28,344  $               60,057 $               71,717  $              113,972 HealthEquity, Inc. and subsidiaries
Condensed consolidated statements of cash flows (unaudited)   Six months ended July 31,
 (in thousands) 2026   2025 Cash flows from operating activities:   Net income$                       135,062  $                       113,769 Adjustments to reconcile net income to net cash provided by operating activities:   Depreciation and amortization                           80,169                             77,195 Stock-based compensation                           41,616                             33,404 Amortization of debt discount and issuance costs                                558                                  533 Amortization of gains on derivatives                               (168)                                    — Deferred taxes                           19,321                             30,711 Changes in operating assets and liabilities:   Accounts receivable, net                             1,503                               6,842 Prepaid expenses and other current and non-current assets                          (12,581)                           (20,650)Operating lease right-of-use assets                             3,436                               3,339 Accrued compensation                          (21,095)                           (35,032)Accounts payable, accrued liabilities, and other current liabilities                          (13,595)                             (3,785)Operating lease liabilities, non-current                            (4,206)                             (3,951)Other long-term liabilities                             3,665                              (1,771)Net cash provided by operating activities                          233,685                            200,604 Cash flows from investing activities:   Capitalized software development costs                          (30,720)                           (26,464)Purchases of property and equipment                            (1,340)                                (859)Settlement of derivatives, net                            (7,759)                                    — Net cash used in investing activities                          (39,819)                           (27,323)Cash flows from financing activities:   Repurchases of common stock                        (231,054)                         (125,810)Principal payments on long-term debt                          (26,875)                           (50,000)Settlement of client-held funds obligation, net                                480                                  596 Proceeds from exercise of common stock options                                659                             10,446 Net cash used in financing activities                        (256,790)                         (164,768)Increase (decrease) in cash and cash equivalents                          (62,924)                              8,513 Beginning cash and cash equivalents                          318,927                            295,948 Ending cash and cash equivalents$                       256,003  $                       304,461  HealthEquity, Inc. and subsidiaries
Condensed consolidated statements of cash flows (unaudited) (continued)  Six months ended July 31,(in thousands) 2026  2025Supplemental cash flow data:   Interest expense paid in cash$                        23,350 $                        28,362Income tax payments, net                           35,586                              6,507Supplemental disclosures of non-cash investing and financing activities:   Capitalized software development costs included in accounts payable, accrued liabilities, or accrued compensation                             3,434                              3,380Purchases of property and equipment included in accounts payable or accrued liabilities                             1,294                                 155Repurchases of common stock included in accrued liabilities                             3,255                              1,246Exercise of common stock options receivable                                  57                                    — Stock-based compensation expense (unaudited)Total stock-based compensation expense included in the condensed consolidated statements of operations and comprehensive income is as follows:

 Three months ended July 31, Six months ended July 31,(in thousands) 2026  2025  2026  2025Cost of revenue$                 2,713 $                 3,114 $                 5,500 $                 6,501Sales and marketing                    3,229                     1,529                     7,753                     6,399Technology and development                    6,178                     5,732                   10,131                   11,652General and administrative                  10,090                     8,693                   18,232                     8,852Total stock-based compensation expense$               22,210 $               19,068 $               41,616 $               33,404 Total Accounts (unaudited)       (in thousands, except percentages)July 31, 2026 July 31, 2025 % Change January 31, 2026HSAs                 10,739                    9,989 8 %
                  10,570New HSAs from sales - Quarter-to-date                      202                       163 24 %
                       553New HSAs from sales - Year-to-date                      374                       312 20 %
                    1,040New HSAs from acquisitions - Year-to-date                         —                          — *                          —HSAs with investments                      939                       782 20 %
                       832CDBs                   7,016                    7,153 (2)%                    7,221Total Accounts                 17,755                  17,142 4 %
                  17,791Average Total Accounts - Quarter-to-date                 17,710                  17,044 4 %
                  17,462Average Total Accounts - Year-to-date                 17,772                  17,083 4 %
                  17,220 *     Not meaningful

HSA Assets (unaudited)       (in millions, except percentages)July 31, 2026 July 31, 2025 % Change January 31, 2026HSA cash$               17,369 $               17,035 2%
 $               17,982HSA investments                  20,552                   16,102 28%
                   18,482Total HSA Assets                  37,921                   33,137 14%
                   36,464Average daily HSA cash - Quarter-to-date                  17,388                   17,017 2%
                   17,090Average daily HSA cash - Year-to-date                  17,547                   17,149 2%
                   17,082 HSA cash maturity scheduleThe following table summarizes the amount of HSA cash held by our depository partners and insurance company partners that is expected to reprice by fiscal year and the respective average annualized yield currently earned on that HSA cash as of July 31, 2026:

Year ending January 31, (in billions, except percentages)HSA cash expected to reprice Average annualized yieldRemainder of 2027$                              2.3 1.5%
2028                                 2.5 4.0%
2029                                 1.8 3.8%
2030                                 2.3 4.4%
Thereafter                                 7.8 4.4%
Total (1)$                            16.7 3.9%
(1)  Excludes $0.7 billion of HSA cash held in floating-rate contracts as of July 31, 2026.

Client-held funds (unaudited)       (in millions, except percentages)July 31, 2026 July 31, 2025 % Change January 31, 2026Client-held funds$                    931 $                    818 14 %
 $                 1,090Average daily Client-held funds - Quarter-to-date                       936                        884 6 %
                        879Average daily Client-held funds - Year-to-date                       986                        893 10 %
                        864 Reconciliation of net income to Adjusted EBITDA (unaudited)    Three months ended July 31,
  Six months ended July 31,
 (in thousands) 2026   2025   2026   2025 Net income$               65,644  $               59,854  $              135,062  $              113,769 Interest income                   (1,760)                    (3,364)                    (3,647)                    (6,097)Interest expense                  12,605                    14,955                    25,193                    29,813 Income tax provision                  22,221                    18,194                    45,216                    35,232 Depreciation and amortization                  15,669                    11,453                    27,368                    23,192 Amortization of acquired intangible assets                  26,286                    27,001                    52,801                    54,003 Stock-based compensation expense                  22,210                    19,068                    41,616                    33,404 Merger integration expenses                       971                      1,266                      2,084                      2,541 Amortization of incremental costs to obtain a contract                    2,139                      1,951                      4,255                      3,877 Costs associated with unused office space                    1,016                         723                      1,702                      1,575 Other                        (20)                         (27)                       (181)                         (27)Adjusted EBITDA$              166,981  $              151,074  $              331,469  $              291,282  Net income and Adjusted EBITDA as a percentage of revenue (unaudited) Three months ended July 31,     Six months ended July 31,    (in thousands, except
percentages) 2026   2025  $ Change % Change  2026   2025  $ Change % ChangeNet income$      65,644  $      59,854  $     5,790 10 % $    135,062  $    113,769  $   21,293 19 %As a percentage of revenue 19 %  18%      19 %  17 %    Adjusted EBITDA$    166,981  $    151,074  $   15,907 11  % $    331,469  $    291,282  $   40,187 14 %As a percentage of revenue 48 %  46%      47 %  44 %     Reconciliation of net income outlook to Adjusted EBITDA
(unaudited)  Outlook for the year ending(in millions)January 31, 2027Net income$242 - 248Interest income(7)
Interest expense50
Income tax provision81 - 83Depreciation and amortization54
Amortization of acquired intangible assets104
Stock-based compensation expense87
Merger integration expenses5
Amortization of incremental costs to obtain a contract9
Costs associated with unused office space3
Adjusted EBITDA$628 - 636 Note: Values presented may not calculate due to rounding.

Reconciliation of net income to non-GAAP net income (unaudited)

    Three months ended July 31, Six months ended July 31,(in thousands, except per share data) 2026  2025  2026  2025Net income$               65,644 $               59,854 $              135,062 $              113,769Income tax provision                  22,221                   18,194                   45,216                   35,232Income before income taxes - GAAP                  87,865                   78,048                  180,278                  149,001Non-GAAP adjustments:       Amortization of acquired intangible assets                  26,286                   27,001                   52,801                   54,003Stock-based compensation expense                  22,210                   19,068                   41,616                   33,404Merger integration expenses                       971                     1,266                     2,084                     2,541Costs associated with unused office space                    1,016                        723                     1,702                     1,575Total adjustments to income before income taxes - GAAP                  50,483                   48,058                   98,203                   91,523Income before income taxes - Non-GAAP                 138,348                  126,106                  278,481                  240,524Income tax provision - Non-GAAP (1)                  34,586                   31,526                   69,620                   60,130Non-GAAP net income                 103,762                   94,580                  208,861                  180,394        Diluted weighted-average shares                  84,014                   87,746                   84,578                   88,153GAAP net income per diluted share$                   0.78 $                   0.68 $                   1.60 $                   1.29Non-GAAP net income per diluted share$                   1.24 $                   1.08 $                   2.47 $                   2.05 (1)The Company utilizes a normalized non-GAAP tax rate to provide better consistency across the interim reporting periods within a given fiscal year by eliminating the effects of non-recurring and period-specific items, which can vary in size and frequency, and which are not necessarily reflective of the Company’s longer-term operations. The normalized non-GAAP tax rate applied to each period presented was 25%. The Company may adjust its non-GAAP tax rate as additional information becomes available and in conjunction with any other significant events occurring that may materially affect this rate, such as merger and acquisition activity, changes in business outlook, or other changes in expectations regarding tax regulations. Reconciliation of net income outlook to non-GAAP net income outlook (unaudited)

  Outlook for the year ending(in millions, except per share data)January 31, 2027Net income$242 - 248Income tax provision81 - 83Income before income taxes - GAAP323 - 331Non-GAAP adjustments: Amortization of acquired intangible assets104Stock-based compensation expense87Merger integration expenses5Costs associated with unused office space3Total adjustments to income before income taxes - GAAP199Income before income taxes - Non-GAAP522 - 530Income tax provision - Non-GAAP (1)131 - 133Non-GAAP net income$392 - 398  Diluted weighted-average shares84GAAP net income per diluted share$2.88 - 2.96Non-GAAP net income per diluted share$4.66 - 4.73 Note: Values presented may not calculate due to rounding.

(1) The Company utilizes a normalized non-GAAP tax rate to provide better consistency across the interim reporting periods within a given fiscal year by eliminating the effects of non-recurring and period-specific items, which can vary in size and frequency, and which are not necessarily reflective of the Company’s longer-term operations. The normalized non-GAAP tax rate applied to each period presented was 25%. The Company may adjust its non-GAAP tax rate as additional information becomes available and in conjunction with any other significant events occurring that may materially affect this rate, such as merger and acquisition activity, changes in business outlook, or other changes in expectations regarding tax regulations. Certain termsTermDefinitionHSAHealth Savings Account, which is a financial account through which consumers spend and save long-term for healthcare on a tax-advantaged basis.CDBConsumer-directed benefits offered by employers, including flexible spending and health reimbursement arrangements (“FSAs” and “HRAs”), Consolidated Omnibus Budget Reconciliation Act (“COBRA”) administration, commuter and other benefits.HSA memberConsumers with HSAs that we serve.Total HSA AssetsHSA members’ custodial cash assets held by our federally insured depository partners and our insurance company partners. Total HSA Assets also includes HSA members' investments held by our custodial investment fund partner.ClientOur employer clients.Total AccountsThe sum of HSAs and CDBs on our platforms.Client-held fundsDeposits held on behalf of our Clients to facilitate administration of our CDBs.Network PartnerOur health plan partners, benefits administrators, and retirement plan recordkeepers.Adjusted EBITDAEarnings before interest, taxes, depreciation and amortization, amortization of acquired intangible assets, stock-based compensation expense, merger integration expenses, acquisition costs, gains and losses on equity securities, amortization of incremental costs to obtain a contract, costs associated with unused office space, and certain other non-operating items.Non-GAAP net incomeCalculated by adding back to GAAP net income before income taxes the following items: amortization of acquired intangible assets, stock-based compensation expense, merger integration expenses, acquisition costs, gains and losses on equity securities, costs associated with unused office space, and losses on extinguishment of debt, and subtracting a non-GAAP tax provision using a normalized non-GAAP tax rate.Non-GAAP net income per diluted shareCalculated by dividing non-GAAP net income by diluted weighted-average shares outstanding.

HealthEquity (HQY - Free Report) reported $350.73 million in revenue for the quarter ended July 2026, representing a year-over-year increase of 7.6%. EPS of $1.24 for the same period compares to $1.08 a year ago.

The reported revenue represents a surprise of +0.14% over the Zacks Consensus Estimate of $350.23 million. With the consensus EPS estimate being $1.19, the EPS surprise was +4.2%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how HealthEquity performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Total HSA Assets: $37.92 billion versus $37.64 billion estimated by two analysts on average.HSA Assets - HSA investments: $20.55 billion compared to the $20.01 billion average estimate based on two analysts.Total Accounts - CDBs: 7.02 million versus the two-analyst average estimate of 7.05 million.Total Accounts: 17.76 million versus the two-analyst average estimate of 17.64 million.HSA Assets - HSA cash: $17.37 billion compared to the $17.63 billion average estimate based on two analysts.Total Accounts - HSAs: 10.74 million versus 10.59 million estimated by two analysts on average.Revenue- Service: $124.44 million compared to the $121.1 million average estimate based on three analysts. The reported number represents a change of +5.6% year over year.Revenue- Custodial: $175.94 million versus the three-analyst average estimate of $177.7 million. The reported number represents a year-over-year change of +10.1%.Revenue- Interchange: $50.35 million compared to the $50.98 million average estimate based on three analysts. The reported number represents a change of +4.7% year over year.View all Key Company Metrics for HealthEquity here>>>

Shares of HealthEquity have returned +0.3% over the past month versus the Zacks S&P 500 composite's +3.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

HealthEquity, Inc. (HQY) Q2 2027 Earnings Call Transcript

Canada Pension Plan Investment Board purchased a new stake in HealthEquity, Inc. (NASDAQ:HQY – Free Report) during the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund purchased 135,600 shares of the company’s stock, valued at approximately $12,247,000. Canada Pension Plan Investment Board owned 0.16% of HealthEquity as of its most recent filing with the Securities & Exchange Commission.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Acumen Wealth Advisors LLC acquired a new stake in shares of HealthEquity during the 4th quarter worth approximately $27,000. Caitong International Asset Management Co. Ltd lifted its position in shares of HealthEquity by 1,723.5% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 310 shares of the company’s stock valued at $28,000 after acquiring an additional 293 shares during the period. Aster Capital Management DIFC Ltd acquired a new position in shares of HealthEquity during the 4th quarter valued at $28,000. Leonteq Securities AG boosted its stake in HealthEquity by 159.9% during the first quarter. Leonteq Securities AG now owns 382 shares of the company’s stock worth $32,000 after acquiring an additional 235 shares in the last quarter. Finally, Axiom Investment Management LLC bought a new position in HealthEquity during the first quarter worth $33,000. 99.55% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In HQY has been the subject of several research analyst reports. Wells Fargo & Company set a $111.00 price target on shares of HealthEquity in a research note on Monday, June 1st. Citigroup reissued a “market outperform” rating on shares of HealthEquity in a research report on Friday. Weiss Ratings upgraded HealthEquity from a “hold (c)” rating to a “hold (c+)” rating in a research note on Friday, June 5th. Royal Bank Of Canada raised their target price on HealthEquity from $100.00 to $108.00 and gave the company an “outperform” rating in a research note on Wednesday, June 3rd. Finally, Telsey Advisory Group set a $111.00 target price on HealthEquity in a research report on Friday. Eleven analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $110.93.

Check Out Our Latest Analysis on HQY More HealthEquity News Here are the key news stories impacting HealthEquity this week:

Positive Sentiment: HealthEquity exceeded expectations with adjusted earnings of $1.24 per share versus the $1.19 consensus, while revenue reached $350.7 million, slightly above estimates. Revenue increased 95.5% year over year. HealthEquity Q2 Earnings and Revenues Top Estimates Positive Sentiment: Profitability improved, with net income rising 10% to $65.6 million and net margin expanding to 19% from 18%. Adjusted EBITDA grew 11% to $167 million, while its margin increased to 48% from 46%. HealthEquity Second-Quarter Financial Results Positive Sentiment: Management raised fiscal 2027 adjusted EPS guidance to $4.66–$4.73, above the $4.56 analyst consensus. Record HSA assets of $37.9 billion provide additional support for the company’s long-term growth outlook. HealthEquity Raises Fiscal 2027 Guidance Positive Sentiment: BTIG Research reaffirmed its “buy” rating and raised its price target to $115. Another analysis indicated that HQY could be approximately 19% undervalued after the guidance increase, reinforcing the bullish interpretation of the earnings update. BTIG Research Rating HealthEquity Could Be Undervalued Neutral Sentiment: Fiscal 2027 revenue guidance of approximately $1.4 billion was broadly in line with expectations, so the guidance improvement was driven mainly by stronger anticipated earnings and margins. Negative Sentiment: Director Adrian T. Dillon sold 7,632 shares valued at approximately $798,000, reducing his position by 10.9%. The sale was executed under a pre-arranged Rule 10b5-1 plan, which reduces its negative signaling value but could still attract investor attention. HealthEquity Director Stock Sale Negative Sentiment: HQY trades at a premium valuation of roughly 35 times earnings. After the recent advance toward its 52-week high, some investors may lock in gains, potentially tempering the stock’s reaction to otherwise favorable fundamentals. Insider Transactions at HealthEquity In other news, Director Adrian T. Dillon sold 7,632 shares of the stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $104.61, for a total value of $798,383.52. Following the completion of the sale, the director directly owned 62,395 shares of the company’s stock, valued at $6,527,140.95. This represents a 10.90% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Michael Henry Fiore sold 2,470 shares of the stock in a transaction that occurred on Thursday, July 2nd. The stock was sold at an average price of $95.00, for a total value of $234,650.00. Following the completion of the sale, the executive vice president directly owned 56,643 shares of the company’s stock, valued at approximately $5,381,085. This trade represents a 4.18% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 12,456 shares of company stock valued at $1,256,664 in the last quarter. Company insiders own 1.60% of the company’s stock.

HealthEquity Stock Performance NASDAQ HQY opened at $96.37 on Friday. The company has a fifty day simple moving average of $98.16 and a 200 day simple moving average of $87.87. HealthEquity, Inc. has a 12-month low of $72.76 and a 12-month high of $107.62. The company has a current ratio of 2.99, a quick ratio of 3.44 and a debt-to-equity ratio of 0.47. The company has a market cap of $8.06 billion, a P/E ratio of 34.79, a PEG ratio of 1.62 and a beta of 0.21.

HealthEquity (NASDAQ:HQY – Get Free Report) last posted its earnings results on Thursday, August 27th. The company reported $1.24 EPS for the quarter, topping the consensus estimate of $1.19 by $0.05. HealthEquity had a net margin of 17.36% and a return on equity of 15.33%. The company had revenue of $350.73 million during the quarter, compared to the consensus estimate of $349.22 million. HealthEquity’s revenue was up 95.5% on a year-over-year basis. HealthEquity has set its FY 2027 guidance at 4.660-4.730 EPS. Sell-side analysts predict that HealthEquity, Inc. will post 3.92 earnings per share for the current fiscal year.

HealthEquity Company Profile (Free Report)

HealthEquity, Inc (NASDAQ: HQY) is a leading administrator of consumer-directed health accounts and related benefit solutions in the United States. Founded in 2002 and headquartered in Draper, Utah, the company specializes in health savings accounts (HSAs) and offers complementary services such as flexible spending accounts (FSAs), health reimbursement arrangements (HRAs), COBRA administration and commuter benefits. Through its technology-driven platform, HealthEquity enables employers, health plans and individuals to streamline account management, improve cost transparency and encourage more informed healthcare spending.

Serving millions of members across all 50 states, HealthEquity leverages an open-architecture ecosystem that integrates with health plans, payroll providers and financial institutions.

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Wall Street analysts forecast that HealthEquity (HQY - Free Report) will report quarterly earnings of $1.19 per share in its upcoming release, pointing to a year-over-year increase of 10.2%. It is anticipated that revenues will amount to $350.23 million, exhibiting an increase of 7.5% compared to the year-ago quarter.

The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.

Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.

While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.

In light of this perspective, let's dive into the average estimates of certain HealthEquity metrics that are commonly tracked and forecasted by Wall Street analysts.

The consensus among analysts is that 'Revenue- Service' will reach $121.10 million. The estimate indicates a change of +2.7% from the prior-year quarter.

According to the collective judgment of analysts, 'Revenue- Custodial' should come in at $177.70 million. The estimate indicates a change of +11.2% from the prior-year quarter.

Analysts predict that the 'Revenue- Interchange' will reach $50.98 million. The estimate indicates a year-over-year change of +6%.

It is projected by analysts that the 'Total HSA Assets' will reach $37.64 billion. Compared to the present estimate, the company reported $33.14 billion in the same quarter last year.

Analysts expect 'HSA Assets - HSA investments' to come in at $20.01 billion. Compared to the present estimate, the company reported $16.10 billion in the same quarter last year.

Analysts forecast 'Total Accounts - CDBs' to reach 7.05 million. Compared to the current estimate, the company reported 7.15 million in the same quarter of the previous year.

The average prediction of analysts places 'Total Accounts' at 17.64 million. The estimate compares to the year-ago value of 17.14 million.

Analysts' assessment points toward 'HSA Assets - HSA cash' reaching $17.63 billion. Compared to the current estimate, the company reported $17.04 billion in the same quarter of the previous year.

The combined assessment of analysts suggests that 'Total Accounts - HSAs' will likely reach 10.59 million. The estimate is in contrast to the year-ago figure of 9.99 million.

View all Key Company Metrics for HealthEquity here>>>

HealthEquity shares have witnessed a change of +11.4% in the past month, in contrast to the Zacks S&P 500 composite's +2.3% move. With a Zacks Rank #3 (Hold), HQY is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Posted by Defense World Staff on Aug 6th, 2026

Amundi increased its holdings in HealthEquity, Inc. (NASDAQ:HQY – Free Report) by 2,130.8% during the 1st quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 67,592 shares of the company’s stock after acquiring an additional 64,562 shares during the quarter. Amundi owned approximately 0.08% of HealthEquity worth $5,649,000 as of its most recent filing with the SEC.

Other institutional investors and hedge funds have also recently bought and sold shares of the company. Acumen Wealth Advisors LLC bought a new stake in shares of HealthEquity in the fourth quarter worth $27,000. Aster Capital Management DIFC Ltd bought a new position in HealthEquity during the 4th quarter valued at $28,000. Caitong International Asset Management Co. Ltd boosted its stake in HealthEquity by 1,723.5% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 310 shares of the company’s stock valued at $28,000 after acquiring an additional 293 shares during the last quarter. Leonteq Securities AG grew its holdings in HealthEquity by 159.9% during the 1st quarter. Leonteq Securities AG now owns 382 shares of the company’s stock worth $32,000 after acquiring an additional 235 shares in the last quarter. Finally, Torren Management LLC acquired a new position in HealthEquity during the 4th quarter worth $40,000. Hedge funds and other institutional investors own 99.55% of the company’s stock.

Wall Street Analyst Weigh In HQY has been the topic of several research reports. Citigroup restated a “market outperform” rating on shares of HealthEquity in a research note on Monday, June 1st. KeyCorp reiterated an “overweight” rating on shares of HealthEquity in a research report on Tuesday, May 26th. Citizens Jmp boosted their price target on HealthEquity from $110.00 to $111.00 and gave the company a “market outperform” rating in a report on Monday, June 1st. BMO Capital Markets raised HealthEquity from a “market perform” rating to an “outperform” rating and upped their price target for the company from $85.00 to $105.00 in a research report on Thursday, April 9th. Finally, Weiss Ratings upgraded HealthEquity from a “hold (c)” rating to a “hold (c+)” rating in a research note on Friday, June 5th. Eleven equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $110.93.

Get Our Latest Research Report on HealthEquity

HealthEquity Trading Down 0.5% NASDAQ:HQY opened at $104.41 on Thursday. The firm has a market capitalization of $8.73 billion, a P/E ratio of 39.10, a P/E/G ratio of 1.76 and a beta of 0.21. The business has a 50 day simple moving average of $92.77 and a 200 day simple moving average of $85.53. The company has a debt-to-equity ratio of 0.46, a current ratio of 3.44 and a quick ratio of 3.44. HealthEquity, Inc. has a 12-month low of $72.76 and a 12-month high of $106.42.

HealthEquity (NASDAQ:HQY – Get Free Report) last posted its earnings results on Thursday, May 28th. The company reported $1.24 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.11 by $0.13. The company had revenue of $354.64 million for the quarter, compared to analysts’ expectations of $352.02 million. HealthEquity had a return on equity of 14.75% and a net margin of 17.25%.HealthEquity’s revenue was up 7.2% compared to the same quarter last year. HealthEquity has set its FY 2027 guidance at 2.880-2.950 EPS. Equities research analysts predict that HealthEquity, Inc. will post 3.92 EPS for the current year.

Insider Activity at HealthEquity In related news, EVP Michael Henry Fiore sold 3,142 shares of HealthEquity stock in a transaction dated Friday, May 29th. The stock was sold at an average price of $95.00, for a total transaction of $298,490.00. Following the transaction, the executive vice president directly owned 59,113 shares of the company’s stock, valued at $5,615,735. The trade was a 5.05% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Gayle Furgurson Wellborn sold 2,439 shares of HealthEquity stock in a transaction on Thursday, May 28th. The stock was sold at an average price of $90.00, for a total value of $219,510.00. Following the completion of the transaction, the director owned 19,733 shares in the company, valued at $1,775,970. The trade was a 11.00% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 17,905 shares of company stock worth $1,651,280 in the last 90 days. Corporate insiders own 1.60% of the company’s stock.

About HealthEquity (Free Report)

HealthEquity, Inc (NASDAQ: HQY) is a leading administrator of consumer-directed health accounts and related benefit solutions in the United States. Founded in 2002 and headquartered in Draper, Utah, the company specializes in health savings accounts (HSAs) and offers complementary services such as flexible spending accounts (FSAs), health reimbursement arrangements (HRAs), COBRA administration and commuter benefits. Through its technology-driven platform, HealthEquity enables employers, health plans and individuals to streamline account management, improve cost transparency and encourage more informed healthcare spending.

Serving millions of members across all 50 states, HealthEquity leverages an open-architecture ecosystem that integrates with health plans, payroll providers and financial institutions.

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HealthEquity (HQY - Free Report) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.

The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.

Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.

Therefore, the Zacks rating upgrade for HealthEquity basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.

Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.

Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for HealthEquity imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.

Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .

Earnings Estimate Revisions for HealthEquityFor the fiscal year ending January 2027, this provider of services for managing health care accounts is expected to earn $4.71 per share, which is unchanged compared with the year-ago reported number.

Analysts have been steadily raising their estimates for HealthEquity. Over the past three months, the Zacks Consensus Estimate for the company has increased 2%.

Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of HealthEquity to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Stock to Watch: HealthEquity (HQY - Free Report) Draper, UT-headquartered HealthEquity provides integrated solutions for healthcare account management, health reimbursement arrangement and flexible spending accounts for health plans, insurance companies and third-party administrators in the United States.

HQY is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

Additionally, the company could be a top pick for growth investors. HQY has a Growth Style Score of A, forecasting year-over-year earnings growth of 17.8% for the current fiscal year.

For fiscal 2027, six analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.10 to $4.71 per share. HQY boasts an average earnings surprise of +12%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, HQY should be on investors' short list.

Key Takeaways HealthEquity is gaining from solid fiscal Q1 results, HSA strength and its business model.HQY's AI tools cut manual email handling 25% and reduced efforts by more than 90% in targeted workflows.HealthEquity's HSAs rose 8% to 10.6 million, while total HSA assets grew 19% to $37.1 billion. HealthEquity, Inc. (HQY - Free Report) has been gaining from its business model and strategy. The optimism, led by a solid first-quarter fiscal 2027 performance and strength in Health Savings Accounts (HSAs), is expected to contribute further. However, data security threats are major concerns.

In the year-to-date period, this Zacks Rank #3 (Hold) company’s shares have gained 3.8% against the 0.7% decline of the industry. The S&P 500 has increased 10.3% during the said time frame.

The renowned provider of technology-enabled services platforms for healthcare savings and spending decisions has a market capitalization of $7.9 billion. The company projects 15.2% growth over the next five years and expects to witness continued improvements in its business. HealthEquity’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 12.02%.

Image Source: Zacks Investment Research

Reasons Favoring HQY’s GrowthAI & Digital Innovation Drive Scalable Efficiency:In the first quarter of fiscal 2027, management said AI-driven tools reduced manual handling of member and client service emails by 25%. In targeted workflows such as card servicing and claims inquiries, AI-enabled automation reduced manual efforts by more than 90% and accelerated processing times by up to 50%. These initiatives are being paired with continued technology and security investments embedded in the raised fiscal 2027 outlook, suggesting management intends to keep pushing automation while sustaining service quality.

Expansion of Health Savings Accounts: HealthEquity has experienced significant growth in its HSA offerings. As of April 30, 2026, the total number of HSAs for which HealthEquity served as a non-bank custodian was 10.6 million, up 8% year over year.

HealthEquity reported 909,000 HSAs with investments as of April 30, 2026, up 18% year over year. Total accounts, as of April 30, 2026, were 17.8 million. This uptick included total HSAs and 7.2 million Consumer Direct Benefits (CDBs).

Total HSA assets were $37.1 billion at the end of April 30, 2026, up 19% year over year. This included $17.5 billion of HSA cash and $19.6 billion of HSA investments. This figure compares with our fiscal first-quarter HSA cash and HSA investments projection of $17.6 billion and $17.9 billion, respectively. We projected total HSA assets of $35.5 billion for the fiscal first quarter.

Client-held funds, which are deposits held on behalf of HealthEquity’s clients to facilitate the administration of its CDBs and from which the company generates custodial revenues, were $1 billion as of April 30, 2026.

Strong Fiscal Q1 Results: HealthEquity exited first-quarter fiscal 2027 with better-than-expected results. The company witnessed solid top and bottom-line performances in the reported quarter. Solid growth in HSAs also drove the top line. The solid uptick in total HSA assets in the reported quarter is promising. Improvements in operating and gross margins also bode well.

Management noted that the company opened approximately 172,000 new HSAs during the quarter. The company noted that it outpaced industry HSA growth, supported by strong client retention, an active enterprise sales pipeline and continued adoption of HSA-qualified plans.

Management also emphasized that digital engagement continues to strengthen, with monthly active mobile usage surging 90% year over year. The increased use of the mobile platform is helping improve member engagement, boost investing activity and support marketplace adoption, all of which are expected to enhance long-term member lifetime value.

Factor That May Offset HQY’s GainsData Security Threats: HealthEquity manages sensitive personal data and large custodial balances, which keeps cybersecurity risk elevated despite recent progress in fraud reduction. The company remains subject to a consolidated putative class action related to a fiscal 2025 cybersecurity incident involving a business partner’s user account and is also subject to regulatory inquiries connected to that incident.

In May 2026, the company filed a renewed motion to compel arbitration, and the potential loss associated with the lawsuit and any regulatory action was not reasonably estimable based on available information. Any adverse outcome could increase costs, create operational distraction and impact member and client confidence, which can weigh on the long-term margin and growth profile.

Estimate TrendHealthEquity has been witnessing a stable estimate revision trend for fiscal 2027. Over the past 30 days, the Zacks Consensus Estimate for earnings per share (EPS) has remained stable at $4.71.

The Zacks Consensus Estimate for second-quarter fiscal 2027 revenues is pegged at $350.2 million, implying a 7.5% rise from the year-ago reported number. The consensus mark for fiscal second-quarter EPS is pinned at $1.19, implying a 10.2% improvement year over year.

Key PicksSome better-ranked stocks from the broader medical space are West Pharmaceutical (WST - Free Report) , Intuitive Surgical (ISRG - Free Report) and Cardinal Health (CAH - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

West Pharmaceutical reported first-quarter 2026 earnings per share of $2.13, which beat the Zacks Consensus Estimate by 26.8%. Revenues of $844.9 million surpassed the Zacks Consensus Estimate by 8.5%.

West Pharmaceutical has an estimated long-term earnings growth rate of 13.9%. WST’s earnings surpassed estimates in the trailing four quarters, the average surprise being 19.4%.

Intuitive Surgical reported first-quarter 2026 adjusted EPS of $2.50, which beat the Zacks Consensus Estimate by 20.2%. Revenues of $2.77 billion surpassed the Zacks Consensus Estimate by 6.2%.

Intuitive Surgical has an estimated long-term earnings growth rate of 14.3%. ISRG’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.8%.

Cardinal Health reported a third-quarter fiscal 2026 adjusted EPS of $3.17, which beat the Zacks Consensus Estimate by 13.2%. Revenues of $60.94 billion missed the Zacks Consensus Estimate by 2.3%.

Cardinal Health has an estimated long-term earnings growth rate of 17%. CAH’s earnings surpassed estimates in the trailing four quarters, the average surprise being 10.3%.

Investors interested in Medical Services stocks are likely familiar with GoodRx Holdings, Inc. (GDRX) and HealthEquity (HQY). But which of these two stocks offers value investors a better bang for their buck right now?

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Zacks Premium also includes the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.

Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.

Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.

#1 (Strong Buy) stocks have produced an unmatched +24% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

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Stock to Watch: HealthEquity (HQY - Free Report) Draper, UT-headquartered HealthEquity provides integrated solutions for healthcare account management, health reimbursement arrangement and flexible spending accounts for health plans, insurance companies and third-party administrators in the United States.

HQY is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.

Additionally, the company could be a top pick for growth investors. HQY has a Growth Style Score of A, forecasting year-over-year earnings growth of 17.8% for the current fiscal year.

Six analysts revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.10 to $4.71 per share. HQY also boasts an average earnings surprise of +12%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, HQY should be on investors' short list.

Key Takeaways HQY benefits from solid Q4 results and expanding HSAs, including rising HSA assets and investment accounts.HQY advances AI tools like claims adjudication and Agentic AI to speed service and boost satisfaction.HQY faces ongoing data security risks, including $0.3M in fraud reimbursements in the quarter. HealthEquity, Inc. (HQY - Free Report) has been gaining from its business model and strategy. The optimism, led by a solid fourth-quarter fiscal 2026 performance and strength in Health Savings Accounts (HSAs), is expected to contribute further. However, data security threats are major concerns.

In the year-to-date period, the Zacks Rank #3 (Hold) company’s shares have lost 10.3% compared with the 10.2% decline of the industry. The S&P 500 has increased 8.8% during the said time frame.

The renowned provider of technology-enabled services platforms for healthcare savings and spending decisions has a market capitalization of $6.8 billion. The company projects 14.3% growth over the next five years and expects to witness continued improvements in its business. HealthEquity’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 14.03%.

Image Source: Zacks Investment Research

Reasons Favoring HQY’s GrowthAI & Digital Innovation Drive Scalable Efficiency: In fourth-quarter fiscal 2026, HealthEquity further advanced its AI and digital innovation strategy, with management now framing AI as an active driver of operating leverage rather than a forward-looking initiative. The company highlighted that AI-enabled tools, including expedited claims processing, intelligent self-service solutions and evolving agentic support capabilities, are already reducing reliance on phone-based interactions, lowering service costs and improving resolution speed. These efficiencies contributed to a $17 million year-over-year decline in service costs and supported more than 700 basis points of gross margin expansion, demonstrating that automation and digital workflows are translating into tangible financial benefits.

Expansion of Health Savings Accounts: HealthEquity has experienced significant growth in its HSA offerings. As of Jan. 31, 2026, the total number of Health Savings Accounts (HSAs) for which HealthEquity served as a non-bank custodian was 10.6 million, up 7% year over year.

HealthEquity reported 832,000 HSAs with investments as of Jan. 31, 2026, up 10% year over year. Total accounts, as of Jan. 31, 2026, were 17.8 million. This uptick included total HSAs and 7.2 million Consumer Direct Benefits (CDBs).

Total HSA assets were $36.5 billion at the end of Jan. 31, 2026, up 14% year over year. This included $18 billion of HSA cash and $18.5 billion of HSA investments.

Client-held funds, which are deposits held on behalf of HealthEquity’s clients to facilitate the administration of its CDBs and from which the company generates custodial revenues, were $1.1 billion as of Jan. 31, 2026.

Strong Q4 Results: HealthEquity exited fourth-quarter fiscal 2026 results on a strong note, with both earnings and revenues surpassing expectations. The company benefited from solid growth in health savings accounts (HSAs), which continued to drive top-line expansion, while a sharp increase in total HSA assets remained encouraging.

Margin performance was another highlight, with meaningful improvements in both gross and operating margins reflecting operating leverage and disciplined cost management. HealthEquity also demonstrated robust account growth momentum, adding a record 550,000 HSAs in the fiscal fourth quarter and more than 1 million new HSAs during fiscal 2026, taking total accounts to 17.8 million.

Management attributed the strong growth to solid execution in new sales, retention rates above 98% and continued adoption of HSA-qualified health plans, which collectively position the company well for sustained growth.

A Factor That May Offset HQY’s GainsData Security Threats: HealthEquity manages highly sensitive personal data and more than $34 billion of client HSA assets, making platform security a persistent operational risk. While fraud reimbursements declined to approximately $0.3 million in the fiscal third quarter of 2026, management continues to invest heavily in fraud prevention and security controls, underscoring that the threat remains structural rather than eliminated. Any material security breach could result in the loss of funds or sensitive data, litigation, regulatory scrutiny and reputational damage, potentially disrupting operations, pressuring margins and eroding client and member confidence.

Estimate TrendHealthEquity has been witnessing a stable estimate revision trend for fiscal 2027. Over the past 30 days, the Zacks Consensus Estimate for earnings per share (EPS) has remained stable at $4.60.

The Zacks Consensus Estimate for first-quarter fiscal 2027 revenues is pegged at $354.4 million, implying a 7.1% rise from the year-ago reported number. The consensus mark for fiscal first-quarter EPS is pinned at $1.11, implying a 14.4% improvement year over year.

Key PicksSome better-ranked stocks in the broader medical space that have announced quarterly results are West Pharmaceutical Services, Inc. (WST - Free Report) , Intuitive Surgical (ISRG - Free Report) and Cardinal Health, Inc. (CAH - Free Report) .

West Pharmaceutical reported first-quarter 2026 EPS of $2.13, which beat the Zacks Consensus Estimate by 26.8%. Revenues of $844.9 million surpassed the Zacks Consensus Estimate by 8.5%. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

West Pharmaceutical has a long-term estimated growth rate of 13.9%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 19.37%.

Intuitive Surgical reported first-quarter 2026 adjusted EPS of $2.50, which beat the Zacks Consensus Estimate by 20.19%. Revenues of $2.77 billion surpassed the Zacks Consensus Estimate by 6.2%. It currently carries a Zacks Rank of 2 (Buy).

Intuitive Surgical has a long-term estimated growth rate of 14.9%. ISRG’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.82%.

Cardinal Health, carrying a Zacks Rank of 2 at present, reported third-quarter fiscal 2026 adjusted EPS of $3.17, which beat the Zacks Consensus Estimate by 13.2%. Revenues of $60.94 billion missed the Zacks Consensus Estimate by 2.3%.

Cardinal Health has a long-term estimated growth rate of 15.6%. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 10.27%.

In its upcoming report, HealthEquity (HQY - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $1.11 per share, reflecting an increase of 14.4% compared to the same period last year. Revenues are forecasted to be $354.43 million, representing a year-over-year increase of 7.1%.

The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.

Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.

While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.

Bearing this in mind, let's now explore the average estimates of specific HealthEquity metrics that are commonly monitored and projected by Wall Street analysts.

It is projected by analysts that the 'Revenue- Service' will reach $121.69 million. The estimate indicates a year-over-year change of +1.6%.

The consensus estimate for 'Revenue- Custodial' stands at $175.56 million. The estimate indicates a change of +12.2% from the prior-year quarter.

Analysts forecast 'Revenue- Interchange' to reach $58.34 million. The estimate indicates a change of +6.8% from the prior-year quarter.

View all Key Company Metrics for HealthEquity here>>>

HealthEquity shares have witnessed a change of +11.2% in the past month, in contrast to the Zacks S&P 500 composite's +5.5% move. With a Zacks Rank #2 (Buy), HQY is expected outperform the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

HealthEquity is a leading HSA administrator, benefiting from rising healthcare costs and recent legislative tailwinds expanding its addressable market. Revenue grew 9% in FY2026 to $1.313 billion, with significant margin expansion and a standout 17% growth in custodial revenue driven by enhanced rate migration. Management projects further yield increases in FY2027, and a major low-yield contract expiry is set to boost custodial revenue meaningfully.

Increases Repurchase Program by $1.0 Billion

Highlights of the first quarter include:

Net income increased 29% to $69.4 million, and net income margin increased to 20% from 16% last year.Adjusted EBITDA increased 17% to $164.5 million, and Adjusted EBITDA margin increased to 46% from 42% last year.Revenue increased 7% to $354.6 million.Net income per diluted share rose 34% to $0.82 from $0.61 one year ago, and non-GAAP net income per diluted share increased 28% to $1.24.Total HSA Assets grew 19% to $37.1 billion.Returned $123.0 million to shareholders through stock repurchases. DRAPER, Utah, May 28, 2026 (GLOBE NEWSWIRE) -- HealthEquity, Inc. (NASDAQ: HQY) ("HealthEquity" or the "Company"), the largest independent health savings account ("HSA") custodian by account volume and a leader in consumer-directed benefits ("CDBs"), today announced financial results for its first quarter ended April 30, 2026.

"HealthEquity delivered strong first‑quarter results, with Adjusted EBITDA margin expanding to 46% and a raised fiscal 2027 outlook," said Scott Cutler, President and CEO of HealthEquity. "These results demonstrate that our flywheel is compounding through account and asset growth, deeper member engagement, technology‑enabled efficiency, and increasing operating leverage. As healthcare affordability structurally shifts more responsibility to consumers, demand for trusted healthcare financial solutions continues to expand. Our authorization of an additional $1 billion under our share repurchase program reflects our confidence in the durability and long-term cash-generating power of our model."

HealthEquity’s growth model is built on two reinforcing drivers: growth in member accounts and their HSA Assets over time and expansion in the lifetime value of each member relationship as engagement and activity increase. As accounts mature, these dynamics can compound, supporting durable growth and margin expansion while reducing reliance on short-term employment trends and new account additions in any single period.

First quarter financial results

Revenue for the first quarter ended April 30, 2026 was $354.6 million, an increase of 7% compared to $330.8 million for the first quarter ended April 30, 2025. Revenue this quarter included: service revenue of $122.9 million, custodial revenue of $174.3 million, and interchange revenue of $57.4 million.

Net income was $69.4 million, or $0.82 per diluted share, for the first quarter ended April 30, 2026, compared to $53.9 million, or $0.61 per diluted share, for the first quarter ended April 30, 2025. Net income margin was 20% for the first quarter ended April 30, 2026, compared to 16% for the first quarter ended April 30, 2025.

Non-GAAP net income was $105.1 million, or $1.24 per diluted share, for the first quarter ended April 30, 2026, compared to $85.8 million, or $0.97 per diluted share, for the first quarter ended April 30, 2025.

Adjusted EBITDA was $164.5 million for the first quarter ended April 30, 2026, an increase of 17% compared to the first quarter ended April 30, 2025. Adjusted EBITDA was 46% of revenue, compared to 42% for the first quarter ended April 30, 2025.

Account and asset metrics

HSAs as of April 30, 2026 were 10.6 million, an increase of 8% year over year, including 909,000 HSAs with investments, an increase of 18% year over year. Total Accounts as of April 30, 2026 were 17.8 million, including 7.2 million complementary CDBs.

Total HSA Assets as of April 30, 2026 were $37.1 billion, an increase of 19% year over year. Total HSA Assets included $17.5 billion of HSA cash and $19.6 billion of HSA investments. Client-held funds, which are deposits held on behalf of our Clients to facilitate administration of our CDBs, and from which we generate custodial revenue, were $1.0 billion as of April 30, 2026.

Stock repurchase program

The Company repurchased 1.5 million shares of its common stock for $123.0 million during the first quarter ended April 30, 2026. In May 2026, the Company's board of directors authorized an additional $1.0 billion of common stock repurchases under the program.

Business outlook

For the fiscal year ending January 31, 2027, management expects revenues of $1.410 billion to $1.420 billion. Its outlook for net income is between $242 million and $248 million, resulting in net income of $2.88 to $2.95 per diluted share. Its outlook for non-GAAP net income, calculated using the method described below, is between $392 million and $398 million, resulting in non-GAAP net income per diluted share of $4.66 to $4.73 (based on an estimated 84 million diluted weighted-average shares outstanding). Management expects Adjusted EBITDA of $625 million to $633 million.

See “Non-GAAP financial information” below for definitions of our Adjusted EBITDA and non-GAAP net income. A reconciliation of the non-GAAP financial measures used throughout this release to the most comparable GAAP financial measures is included with the financial tables at the end of this release.

Conference call

HealthEquity management will host a conference call at 4:30 pm (Eastern Time) on Thursday, May 28, 2026 to discuss the fiscal 2027 first quarter financial results. The conference call will be accessible by dialing 1-833-630-1956, or 1-412-317-1837 for international callers, and referencing conference ID "HealthEquity." A live audio webcast of the call will be available on the investor relations section of our website at http://ir.healthequity.com.

Non-GAAP financial information

To supplement our financial information presented on a GAAP basis, we disclose non-GAAP financial measures, including Adjusted EBITDA, non-GAAP net income, and non-GAAP net income per diluted share.

Adjusted EBITDA is earnings before interest, taxes, depreciation and amortization, amortization of acquired intangible assets, stock-based compensation expense, merger integration expenses, acquisition costs, gains and losses on equity securities, amortization of incremental costs to obtain a contract, costs associated with unused office space, and certain other non-operating items.Non-GAAP net income is calculated by adding back to GAAP net income before income taxes the following items: amortization of acquired intangible assets, stock-based compensation expense, merger integration expenses, acquisition costs, gains and losses on equity securities, costs associated with unused office space, and losses on extinguishment of debt, and subtracting a non-GAAP tax provision using a normalized non-GAAP tax rate.Non-GAAP net income per diluted share is calculated by dividing non-GAAP net income by diluted weighted-average shares outstanding. Non-GAAP financial measures should be considered in addition to results prepared in accordance with GAAP and should not be considered as a substitute for, or superior to, GAAP results. We believe that these non-GAAP financial measures provide useful information to management and investors regarding certain financial and business trends relating to the Company's financial condition and results of operations. The Company cautions investors that non-GAAP financial information, by its nature, departs from GAAP; accordingly, its use can make it difficult to compare current results with results from other reporting periods and with the results of other companies. In addition, while amortization of acquired intangible assets is being excluded from non-GAAP financial measures, the revenue generated from those acquired intangible assets is not excluded. Whenever we use these non-GAAP financial measures, we provide a reconciliation of the applicable non-GAAP financial measure to the most closely applicable GAAP financial measure. Investors are encouraged to review the related GAAP financial measures and the reconciliation of the non-GAAP financial measures to their most directly comparable GAAP financial measure as detailed in the tables below.

About HealthEquity

HealthEquity and its subsidiaries administer HSAs and other consumer-directed benefits for more than 17 million accounts in partnership with employers, benefits advisors, and health and retirement plan providers who share our mission to save and improve lives by empowering healthcare consumers. For more information, visit www.healthequity.com.

Forward-looking statements

This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our industry, business strategy, plans, goals and expectations concerning our markets and market position, product expansion, future operations, expenses and other results of operations, revenue, margins, profitability, acquisition synergies, future efficiencies, tax rates, capital expenditures, liquidity and capital resources and other financial and operating information. When used in this discussion, the words “may,” “believes,” “intends,” “seeks,” “aims,” “anticipates,” “plans,” “estimates,” “expects,” “should,” “assumes,” “continues,” “could,” “will,” “future” and the negative of these or similar terms and phrases are intended to identify forward-looking statements in this press release.

Forward-looking statements reflect our current expectations regarding future events, results or outcomes. These expectations may or may not be realized. Although we believe the expectations reflected in the forward-looking statements are reasonable, we can give you no assurance these expectations will prove to be correct. Some of these expectations may be based upon assumptions, data or judgments that prove to be incorrect. Actual events, results and outcomes may differ materially from our expectations due to a variety of known and unknown risks, uncertainties and other factors. Although it is not possible to identify all of these risks and factors, they include, among others, risks related to the following:

our ability to adequately place and safeguard our custodial assets, or the failure of any of our depository or insurance company partners;our ability to compete effectively in a rapidly evolving healthcare and benefits administration industry;our dependence on the continued availability and benefits of tax-advantaged HSAs and other CDBs;the impact of fraudulent account activity involving our member accounts or our third-party service providers on our reputation and financial results;our ability to successfully identify, acquire and integrate additional portfolio purchases or acquisition targets;the significant competition we face and may face in the future, including from those with greater resources than us;our reliance on the availability and performance of our technology and communications systems;potential future cybersecurity breaches of our technology and communications systems and other data interruptions, including resulting costs and liabilities, reputational damage and loss of business;the current uncertain healthcare environment, including changes in healthcare programs and expenditures and related regulations;our ability to comply with current and future privacy, healthcare, tax, ERISA, investment adviser and other laws applicable to our business;our reliance on partners and third-party vendors for distribution and important services;our ability to develop and implement updated features for our technology platforms and communications systems; andour reliance on our management team and key team members. For a detailed discussion of these and other risk factors, please refer to the risks detailed in our filings with the Securities and Exchange Commission, including, without limitation, our Annual Report on Form 10-K for the fiscal year ended January 31, 2026 and subsequent periodic and current reports. Past performance is not necessarily indicative of future results. We undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.

Investor Relations Contact
Richard Putnam
801-727-1000
[email protected]

 HealthEquity, Inc. and subsidiaries
Condensed consolidated balance sheets(in thousands, except par value)April 30, 2026
  January 31, 2026
  (unaudited)
   Assets   Current assets   Cash and cash equivalents$265,369  $318,927 Accounts receivable, net of allowance for doubtful accounts of $953 and $924 as of April 30, 2026 and January 31, 2026, respectively 122,003   123,696 Prepaid expenses and other current assets 79,156   69,658 Total current assets 466,528   512,281 Property and equipment, net 3,800   3,177 Operating lease right-of-use assets 34,578   36,310 Intangible assets, net 1,073,045   1,097,172 Goodwill 1,648,145   1,648,145 Other assets 80,090   83,247 Total assets$3,306,186  $3,380,332 Liabilities and stockholders’ equity   Current liabilities   Accounts payable$14,219  $12,159 Accrued compensation 26,664   60,392 Accrued liabilities 84,941   74,388 Operating lease liabilities 9,916   9,911 Total current liabilities 135,740   156,850 Long-term liabilities   Long-term debt, net of issuance costs 942,656   957,379 Operating lease liabilities, non-current 32,110   34,190 Other long-term liabilities 52,932   31,007 Deferred tax liability 95,353   93,710 Total long-term liabilities 1,123,051   1,116,286 Total liabilities 1,258,791   1,273,136 Commitments and contingencies   Stockholders’ equity   Preferred stock, $0.0001 par value, 100,000 shares authorized, no shares issued and outstanding as of April 30, 2026 and January 31, 2026, respectively —   — Common stock, $0.0001 par value, 900,000 shares authorized, 83,927 and 85,007 shares issued and outstanding as of April 30, 2026 and January 31, 2026, respectively 8   8 Additional paid-in capital 1,901,935   1,916,989 Accumulated earnings 177,204   195,906 Accumulated other comprehensive loss (31,752)  (5,707)Total stockholders’ equity 2,047,395   2,107,196 Total liabilities and stockholders’ equity$3,306,186  $3,380,332            HealthEquity, Inc. and subsidiaries
Condensed consolidated statements of operations (unaudited)
 Three months ended April 30,
 (in thousands, except per share data) 2026   2025 Revenue   Service revenue$122,932  $119,784 Custodial revenue 174,334   156,455 Interchange revenue 57,375   54,605 Total revenue 354,641   330,844 Cost of revenue   Service costs 78,326   88,005 Custodial costs 11,655   10,747 Interchange costs 8,348   7,781 Total cost of revenue 98,329   106,533 Gross profit 256,312   224,311 Operating expenses   Sales and marketing 26,833   25,984 Technology and development 67,767   61,436 General and administrative 31,131   25,536 Amortization of acquired intangible assets 26,515   27,002 Merger integration 1,113   1,275 Total operating expenses 153,359   141,233 Income from operations 102,953   83,078 Other expense   Interest expense (12,588)  (14,858)Other income, net 2,048   2,733 Total other expense (10,540)  (12,125)Income before income taxes 92,413   70,953 Income tax provision 22,995   17,038 Net income$69,418  $53,915 Net income per share:   Basic$0.82  $0.62 Diluted$0.82  $0.61 Weighted-average number of shares used in computing net income per share:   Basic 84,413   86,655 Diluted 85,006   88,415           HealthEquity, Inc. and subsidiaries
Condensed consolidated statements of comprehensive income (unaudited)
 Three months ended April 30,
 (in thousands, except per share data) 2026   2025 Net income$69,418  $53,915 Other comprehensive loss    Cash flow hedges    Net unrealized losses (25,897)  — Reclassification of net gains included in net income (148)  — Net change, net of income tax benefit of $8,463 for the three months ended April 30, 2026 (26,045)  — Total other comprehensive loss (26,045)  — Comprehensive income$43,373  $53,915           HealthEquity, Inc. and subsidiaries
Condensed consolidated statements of cash flows (unaudited)
 Three months ended April 30,
 (in thousands) 2026   2025 Cash flows from operating activities:   Net income$69,418  $53,915 Adjustments to reconcile net income to net cash provided by operating activities:   Depreciation and amortization 38,214   38,741 Stock-based compensation 19,406   14,336 Amortization of debt discount and issuance costs 277   265 Amortization of gains on derivatives (196)  — Deferred taxes 10,106   1,324 Changes in operating assets and liabilities:   Accounts receivable, net 1,693   1,750 Prepaid expenses and other current and non-current assets (11,690)  (5,702)Operating lease right-of-use assets 1,732   1,649 Accrued compensation (31,242)  (42,210)Accounts payable, accrued liabilities, and other current liabilities (873)  3,422 Operating lease liabilities, non-current (2,080)  (1,968)Other long-term liabilities 2,761   (784)Net cash provided by operating activities 97,526   64,738 Cash flows from investing activities:   Purchases of software and capitalized software development costs (15,930)  (16,057)Purchases of property and equipment (362)  (86)Settlement of derivatives, net 2,388   — Net cash used in investing activities (13,904)  (16,143)Cash flows from financing activities:   Repurchases of common stock (123,314)  (59,065)Principal payments on long-term debt (15,000)  — Settlement of client-held funds obligation, net 716   1,451 Proceeds from exercise of common stock options 418   965 Net cash used in financing activities (137,180)  (56,649)Decrease in cash and cash equivalents (53,558)  (8,054)Beginning cash and cash equivalents 318,927   295,948 Ending cash and cash equivalents$265,369  $287,894           HealthEquity, Inc. and subsidiaries
Condensed consolidated statements of cash flows (unaudited) (continued)
 Three months ended April 30,
 (in thousands) 2026   2025 Supplemental cash flow data:   Interest expense paid in cash$18,512  $20,809 Income tax refunds, net (451)  (46)Supplemental disclosures of non-cash investing and financing activities:   Purchases of software and capitalized software development costs included in accounts payable, accrued liabilities, or accrued compensation 2,001   2,774 Purchases of property and equipment included in accounts payable or accrued liabilities 765   546 Repurchases of common stock included in accrued liabilities 2,858   2,000           Stock-based compensation expense (unaudited)Total stock-based compensation expense included in the condensed consolidated statements of operations and comprehensive income is as follows: Three months ended April 30, (in thousands) 2026   2025 Cost of revenue$2,787  $3,387 Sales and marketing 4,524   4,870 Technology and development 3,953   5,920 General and administrative 8,142   159 Total stock-based compensation expense$19,406  $14,336           Total Accounts (unaudited)
(in thousands, except percentages)April 30, 2026  April 30, 2025  % Change  January 31, 2026 HSAs10,635  9,886  8% 10,570 New HSAs from sales - Quarter-to-date172  150  15% 553 New HSAs from sales - Year-to-date172  150  15% 1,040 New HSAs from acquisitions - Year-to-date—  —   * — HSAs with investments909  770  18% 832 CDBs7,150  7,174  0% 7,221 Total Accounts17,785  17,060  4% 17,791 Average Total Accounts - Quarter-to-date17,834  17,122  4% 17,462 Average Total Accounts - Year-to-date17,834  17,122  4% 17,220 *  Not meaningful   HSA Assets (unaudited)(in millions, except percentages)April 30, 2026  April 30, 2025  % Change  January 31, 2026 HSA cash$17,494  $17,066  3% $17,982 HSA investments 19,613   14,205  38%  18,482 Total HSA Assets 37,107   31,271  19%  36,464 Average daily HSA cash - Quarter-to-date 17,706   17,281  2%  17,090 Average daily HSA cash - Year-to-date 17,706   17,281  2%  17,082                  HSA cash maturity schedule
The following table summarizes the amount of HSA cash held by our depository partners and insurance company partners that is expected to reprice by fiscal year and the respective average annualized yield currently earned on that HSA cash as of April 30, 2026:
Year ending January 31, (in billions, except percentages)HSA cash expected to reprice  Average annualized yield Remainder of 2027$3.2  1.8%2028 2.4  3.9%2029 1.7  3.5%2030 2.0  4.3%Thereafter 7.2  4.0%Total (1)$16.5  3.6%(1)  Excludes $1.0 billion of HSA cash held in floating-rate contracts as of April 30, 2026.   Client-held funds (unaudited)
(in millions, except percentages)April 30, 2026  April 30, 2025  % Change  January 31, 2026 Client-held funds$1,013  $925  10% $1,090 Average daily Client-held funds - Quarter-to-date 1,036   902  15%  879 Average daily Client-held funds - Year-to-date 1,036   902  15%  864                  Reconciliation of net income to Adjusted EBITDA (unaudited) Three months ended April 30,
 (in thousands) 2026   2025 Net income$69,418  $53,915 Interest income (1,887)  (2,733)Interest expense 12,588   14,858 Income tax provision 22,995   17,038 Depreciation and amortization 11,699   11,739 Amortization of acquired intangible assets 26,515   27,002 Stock-based compensation expense 19,406   14,336 Merger integration expenses 1,113   1,275 Amortization of incremental costs to obtain a contract 2,116   1,926 Costs associated with unused office space 686   852 Other (161)  — Adjusted EBITDA$164,488  $140,208           Net income and Adjusted EBITDA as a percentage of revenue (unaudited) Three months ended April 30,
      (in thousands, except percentages) 2026   2025  $ Change  % Change Net income$69,418  $53,915  $15,503  29%As a percentage of revenue 20%  16%     Adjusted EBITDA$164,488  $140,208  $24,280  17%As a percentage of revenue 46%  42%                    Reconciliation of net income outlook to Adjusted EBITDA outlook (unaudited) Outlook for the year ending (in millions)January 31, 2027 Net income$242 - 248 Interest income(6)Interest expense50 Income tax provision81 - 83 Depreciation and amortization50 Amortization of acquired intangible assets104 Stock-based compensation expense87 Merger integration expenses6 Amortization of incremental costs to obtain a contract9 Costs associated with unused office space3 Adjusted EBITDA$625 - 633 Note: Values presented may not calculate due to rounding.     Reconciliation of net income to non-GAAP net income (unaudited)
 Three months ended April 30, (in thousands, except per share data) 2026   2025 Net income$69,418  $53,915 Income tax provision 22,995   17,038 Income before income taxes - GAAP 92,413   70,953 Non-GAAP adjustments:     Amortization of acquired intangible assets 26,515   27,002 Stock-based compensation expense 19,406   14,336 Merger integration expenses 1,113   1,275 Costs associated with unused office space 686   852 Total adjustments to income before income taxes - GAAP 47,720   43,465 Income before income taxes - Non-GAAP 140,133   114,418 Income tax provision - Non-GAAP (1) 35,034   28,604 Non-GAAP net income 105,099   85,814       Diluted weighted-average shares 85,006   88,415 GAAP net income per diluted share$0.82  $0.61 Non-GAAP net income per diluted share$1.24  $0.97  (1) The Company utilizes a normalized non-GAAP tax rate to provide better consistency across the interim reporting periods within a given fiscal year by eliminating the effects of non-recurring and period-specific items, which can vary in size and frequency, and which are not necessarily reflective of the Company’s longer-term operations. The normalized non-GAAP tax rate applied to each period presented was 25%. The Company may adjust its non-GAAP tax rate as additional information becomes available and in conjunction with any other significant events occurring that may materially affect this rate, such as merger and acquisition activity, changes in business outlook, or other changes in expectations regarding tax regulations.     Reconciliation of net income outlook to non-GAAP net income outlook (unaudited)
 Outlook for the year ending (in millions, except per share data)January 31, 2027 Net income$242 - 248 Income tax provision81 - 83 Income before income taxes - GAAP322 - 330 Non-GAAP adjustments:  Amortization of acquired intangible assets104 Stock-based compensation expense87 Merger integration expenses6 Costs associated with unused office space3 Total adjustments to income before income taxes - GAAP200 Income before income taxes - Non-GAAP522 - 530 Income tax provision - Non-GAAP (1)131 - 133 Non-GAAP net income$392 - 398    Diluted weighted-average shares84 GAAP net income per diluted share$2.88 - 2.95 Non-GAAP net income per diluted share$4.66 - 4.73 Note: Values presented may not calculate due to rounding. (1) The Company utilizes a normalized non-GAAP tax rate to provide better consistency across the interim reporting periods within a given fiscal year by eliminating the effects of non-recurring and period-specific items, which can vary in size and frequency, and which are not necessarily reflective of the Company’s longer-term operations. The normalized non-GAAP tax rate applied to each period presented was 25%. The Company may adjust its non-GAAP tax rate as additional information becomes available and in conjunction with any other significant events occurring that may materially affect this rate, such as merger and acquisition activity, changes in business outlook, or other changes in expectations regarding tax regulations.     Certain terms
Term DefinitionHSA Health Savings Account, which is a financial account through which consumers spend and save long-term for healthcare on a tax-advantaged basis.CDB Consumer-directed benefits offered by employers, including flexible spending and health reimbursement arrangements (“FSAs” and “HRAs”), Consolidated Omnibus Budget Reconciliation Act (“COBRA”) administration, commuter and other benefits.HSA member Consumers with HSAs that we serve.Total HSA Assets HSA members’ custodial cash assets held by our federally insured depository partners and our insurance company partners. Total HSA Assets also includes HSA members' investments held by our custodial investment fund partner.Client Our employer clients.Total Accounts The sum of HSAs and CDBs on our platforms.Client-held funds Deposits held on behalf of our Clients to facilitate administration of our CDBs.Network Partner Our health plan partners, benefits administrators, and retirement plan recordkeepers.Adjusted EBITDA Earnings before interest, taxes, depreciation and amortization, amortization of acquired intangible assets, stock-based compensation expense, merger integration expenses, acquisition costs, gains and losses on equity securities, amortization of incremental costs to obtain a contract, costs associated with unused office space, and certain other non-operating items.Non-GAAP net income Calculated by adding back to GAAP net income before income taxes the following items: amortization of acquired intangible assets, stock-based compensation expense, merger integration expenses, acquisition costs, gains and losses on equity securities, costs associated with unused office space, and losses on extinguishment of debt, and subtracting a non-GAAP tax provision using a normalized non-GAAP tax rate.Non-GAAP net income per diluted share Calculated by dividing non-GAAP net income by diluted weighted-average shares outstanding.   

HealthEquity (HQY - Free Report) came out with quarterly earnings of $1.24 per share, beating the Zacks Consensus Estimate of $1.11 per share. This compares to earnings of $0.97 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +11.57%. A quarter ago, it was expected that this provider of services for managing health care accounts would post earnings of $0.89 per share when it actually produced earnings of $0.95, delivering a surprise of +6.74%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

HealthEquity, which belongs to the Zacks Medical Services industry, posted revenues of $354.64 million for the quarter ended April 2026, surpassing the Zacks Consensus Estimate by 0.06%. This compares to year-ago revenues of $330.84 million. The company has topped consensus revenue estimates four times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

HealthEquity shares have lost about 5.5% since the beginning of the year versus the S&P 500's gain of 9.9%.

What's Next for HealthEquity?While HealthEquity has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for HealthEquity was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.17 on $348.13 million in revenues for the coming quarter and $4.60 on $1.41 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical Services is currently in the top 33% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

VistaGen Therapeutics, Inc. (VTGN - Free Report) , another stock in the broader Zacks Medical sector, has yet to report results for the quarter ended March 2026.

This company is expected to post quarterly loss of $0.42 per share in its upcoming report, which represents a year-over-year change of +2.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

VistaGen Therapeutics, Inc.'s revenues are expected to be $0.5 million, up 5100% from the year-ago quarter.

For the quarter ended April 2026, HealthEquity (HQY - Free Report) reported revenue of $354.64 million, up 7.2% over the same period last year. EPS came in at $1.24, compared to $0.97 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $354.43 million, representing a surprise of +0.06%. The company delivered an EPS surprise of +11.57%, with the consensus EPS estimate being $1.11.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how HealthEquity performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Revenue- Service: $122.93 million versus the three-analyst average estimate of $121.69 million. The reported number represents a year-over-year change of +2.6%.Revenue- Custodial: $174.33 million compared to the $175.56 million average estimate based on three analysts. The reported number represents a change of +11.4% year over year.Revenue- Interchange: $57.38 million versus $58.34 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +5.1% change.View all Key Company Metrics for HealthEquity here>>>

Shares of HealthEquity have returned +6.2% over the past month versus the Zacks S&P 500 composite's +5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

Key Takeaways HQY posted Q1 FY27 adjusted EPS of $1.24 and revenues of $354.6M, beating estimates.HQY served 10.6M HSAs ( 8% YoY) and 17.8M total accounts, including 7.2M CDBs.HQY expanded gross margin to 72.3% and raised FY27 adjusted EPS view to $4.66-$4.73. HealthEquity, Inc. (HQY - Free Report) reported adjusted earnings per share (EPS) of $1.24 for first-quarter fiscal 2027, surpassing the Zacks Consensus Estimate by 11.7%. The bottom line improved 28% on a year-over-year basis.

GAAP EPS in the fiscal first quarter was 82 cents, up from the year-ago quarter’s EPS of 61 cents.

Shares of HQY gained 1.04% in after-market trading following the earnings call.

HealthEquity’s Q1 Revenues in DetailIn the fiscal first quarter, the company generated revenues of $354.6 million, which beat the Zacks Consensus Estimate by 0.06%. The top line improved 7% from the prior-year quarter.

HSA Details of HQYAs of April 30, 2026, the total number of Health Savings Accounts (HSAs) for which HealthEquity served as a non-bank custodian was 10.6 million, up 8% year over year.

HealthEquity reported 909,000 HSAs with investments as of April 30, 2026, up 18% year over year. Total accounts, as of April 30, 2026, were 17.8 million. This uptick included total HSAs and 7.2 million Consumer Direct Benefits (CDBs).

Total HSA assets were $37.1 billion at the end of April 30, 2026, up 19% year over year. This included $17.5 billion of HSA cash and $19.6 billion of HSA investments. This figure compares to our fiscal first-quarter HSA cash and HSA investments projection of $17.6 billion and $17.9 billion, respectively. We had projected total HSA assets of $35.5 billion for the fiscal first quarter.

Client-held funds, which are deposits held on behalf of HealthEquity’s clients to facilitate the administration of its CDBs and from which the company generates custodial revenues, were $1.0 billion as of April 30, 2026.

Revenue Sources of HealthEquityHealthEquity derives revenues from three sources: Service revenues, Custodial revenues and Interchange revenues.

Service revenues totaled $122.9 million in the quarter, up 2.6% year over year. This reflected a higher number of HSAs and invested HSA Assets. This figure compares favorably with our fiscal first-quarter projection of $122 million.

Custodial revenues totaled $174.3 million, up 11.4% from the year-ago period. Our projection for the fiscal first-quarter Custodial revenues was $176 million.

Interchange revenues totaled $57.4 million, up 5.1% year over year. This figure compares favorably with our fiscal first-quarter projection of $58 million.

HQY’s Q1 Margin DetailsIn the quarter under review, HealthEquity’s gross profit rose 14.3% year over year to $256.3 million. The gross margin expanded 450 basis points (bps) to 72.3%.

Sales and marketing expenses increased 3.3% to $26.8 million year over year, whereas technology and development expenses climbed 10.3% year over year to $67.8 million. General and administrative expenses increased 21.9% year over year to $31.1 million. Total operating expenses of $153.4 million increased 8.6% year over year.

Operating profit totaled $103 million, improving by 23.9% from the prior-year quarter. The operating margin in the quarter expanded by 390 bps to 29% compared with the prior-year quarter.

Financial Position of HQYThe company exited the first quarter of fiscal 2027 with cash and cash equivalents of $265.4 million compared with $318.9 million at the fiscal 2026-end. Total debt (net of issuance costs) at the end of first-quarter fiscal 2027 was $942.6 million compared with $957.4 million at the end of fiscal 2026.

Cumulative net cash provided by operating activities at the end of first-quarter fiscal 2027 totaled $97.5 million compared with $64.7 million a year ago.

HealthEquity’s FY27 GuidanceHealthEquity has updated its revenue and EPS projections for fiscal 2027.

For fiscal 2027, revenues are now projected to be between $1.410 billion and $1.420 billion compared with the previous guidance of $1.405 billion and $1.415 billion. The Zacks Consensus Estimate is currently pegged at $1.41 billion.

Adjusted EPS is now expected to be in the range of $4.66-$4.73 compared with the previous guidance of $4.56-$4.65. The Zacks Consensus Estimate currently stands at $4.60.

Our Take on HQYHealthEquity exited first-quarter fiscal 2027 with better-than-expected results. The company witnessed solid top-line and bottom-line performances in the reported quarter. Solid growth in HSAs also drove the top line. The solid uptick in total HSA assets in the reported quarter is promising. Improvements in operating and gross margins also bode well.

HealthEquity management noted that the company opened approximately 172,000 new HSAs during the quarter. Management noted that the company outpaced industry HSA growth, supported by strong client retention, an active enterprise sales pipeline and continued adoption of HSA-qualified plans. They emphasized that digital engagement continues to strengthen, with monthly active mobile usage surging 90% year over year. Increased use of the mobile platform is helping improve member engagement, boost investing activity and support marketplace adoption, all of which are expected to enhance long-term member lifetime value.

Management also pointed to encouraging early traction in marketplace offerings, particularly metabolic health, diagnostics and men’s health programs. These offerings can become a significant contributor to service revenues over time, given the high-margin nature of marketplace transactions.

At the same time, management acknowledged a few near-term headwinds. Softer healthcare utilization trends modestly pressured interchange revenue growth during the quarter. The company also noted limited visibility in long-term marketplace member retention and adoption patterns, particularly in newer offerings like GLP and men’s health programs. HSA cash yield assumptions remain sensitive to future interest rate movements and custodial contract renewals. While these dynamics may create near-term variability, HealthEquity remains confident that strong digital capabilities, AI-driven operational efficiencies and growing enterprise demand can support long-term growth.

HQY’s Zacks Rank & Other Key PicksCurrently, HealthEquity carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks from the broader medical space are Globus Medical (GMED - Free Report) , West Pharmaceutical (WST - Free Report) and Intuitive Surgical (ISRG - Free Report) .

Globus Medical, currently flaunting a Zacks Rank #1 (Strong Buy), reported a first-quarter 2026 adjusted earnings per share (EPS) of $1.12 per share, which surpassed the Zacks Consensus Estimate by 22.1%. Revenues of $759.9 million beat the Zacks Consensus Estimate by 4.0%. You can see the complete list of today’s Zacks #1 Rank stocks here.

GMED has an estimated long-term earnings growth rate of 10.2% compared with the industry’s 12.6% growth. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 26.3%.

West Pharmaceutical, currently sporting a Zacks Rank #1, reported first-quarter 2026 EPS of $2.13, which beat the Zacks Consensus Estimate by 26.8%. Revenues of $844.9 million surpassed the Zacks Consensus Estimate by 8.5%.

WST has an estimated long-term earnings growth rate of 13.9% compared with the industry’s 9.5% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 19.4%.

Intuitive Surgical, carrying a Zacks Rank #2 at present, reported first-quarter 2026 adjusted EPS of $2.50, which beat the Zacks Consensus Estimate by 20.2%. Revenues of $2.77 billion surpassed the Zacks Consensus Estimate by 6.2%.

ISRG has a long-term estimated growth rate of 14.6% compared with the industry’s 12.6% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.8%.

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What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

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Stock to Watch: HealthEquity (HQY - Free Report) Draper, UT-headquartered HealthEquity provides integrated solutions for healthcare account management, health reimbursement arrangement and flexible spending accounts for health plans, insurance companies and third-party administrators in the United States.

HQY is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.

Momentum investors should take note of this Medical stock. HQY has a Momentum Style Score of A, and shares are up 2.4% over the past four weeks.

Two analysts revised their earnings estimate higher in the last 60 days for fiscal 2027, while the Zacks Consensus Estimate has increased $0.03 to $4.63 per share. HQY also boasts an average earnings surprise of +12%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, HQY should be on investors' short list.

Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. But finding a great growth stock is not easy at all.

By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.

However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.

HealthEquity (HQY - Free Report) is on the list of such stocks currently recommended by our proprietary system. In addition to a favorable Growth Score, it carries a top Zacks Rank.

Studies have shown that stocks with the best growth features consistently outperform the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.

Here are three of the most important factors that make the stock of this provider of services for managing health care accounts a great growth pick right now.

Earnings GrowthEarnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.

While the historical EPS growth rate for HealthEquity is 45.8%, investors should actually focus on the projected growth. The company's EPS is expected to grow 15.7% this year, crushing the industry average, which calls for EPS growth of 11.7%.

Cash Flow GrowthWhile cash is the lifeblood of any business, higher-than-average cash flow growth is more important and beneficial for growth-oriented companies than for mature companies. That's because, growth in cash flow enables these companies to expand their businesses without depending on expensive outside funds.

Right now, year-over-year cash flow growth for HealthEquity is 22%, which is higher than many of its peers. In fact, the rate compares to the industry average of -1%.

While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 16.2% over the past 3-5 years versus the industry average of 11.3%.

Promising Earnings Estimate RevisionsSuperiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

The current-year earnings estimates for HealthEquity have been revising upward. The Zacks Consensus Estimate for the current year has surged 0.4% over the past month.

Bottom LineHealthEquity has not only earned a Growth Score of B based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions.

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

This combination positions HealthEquity well for outperformance, so growth investors may want to bet on it.

Healthcare Cost Pressures Drive Workplace Productivity Losses; HSA Holders Report Stronger Confidence and Control June 08, 2026 11:56 ET  | Source: HealthEquity, Inc.

DRAPER, Utah, June 08, 2026 (GLOBE NEWSWIRE) -- Healthcare affordability remains a significant pressure point for American workers, with more than one in three delaying or avoiding care due to cost, according to new research from HealthEquity (NASDAQ: HQY), the nation's largest independent health savings account (HSA) custodian by account volume. The findings, released today as part of HealthEquity’s second Healthcare Affordability Pulse, show how these pressures are shaping care decisions, workplace productivity, and financial preparedness across American households.

HealthEquity’s Spring 2026 survey found that healthcare-specific pressures show no signs of easing. A recent Gallup poll cites healthcare affordability as Americans' top domestic concern and HealthEquity's data underscores why. Over a third of respondents (36%) reported delaying or avoiding needed medical care due to cost in the past six months. Despite a 16-point jump in benefits understanding since the Fall 2025 wave, the share of consumers who feel financially prepared for healthcare expenses fell from 50% to 42%, showing that knowledge alone isn't enough to close the financial gap.

The Real Cost of Delayed Care
Among the 36% of respondents who reported delaying care, the most commonly skipped services were specialist visits, prescription medications, and diagnostic tests, precisely the care tied to early detection and ongoing condition management. The impact is sharpest among those with the least margin for error:

Chronic condition patients: 44% delayed care, compared to 25% of those without chronic conditionsLower-income households: 46% of those earning under $50,000 delayed or avoided careYounger workers: Gen Z (45%) and Millennials (42%) delayed at significantly higher rates than Gen X (30%) or Boomers (29%)
Workers may also be skipping care they're already entitled to receive. Despite most health plans covering preventive visits at no additional cost, one in three respondents don't fully understand this benefit, a knowledge gap that likely keeps people from seeking care that could catch problems early.

Skipping care merely defers costs and often multiplies them. Commonwealth Fund research shows that more than half of adults with employer coverage who delayed care reported their health problems worsened as a result. The financial consequences follow at every level: studies have shown that medication non-adherence alone adds more than $5 billion annually to the U.S. healthcare system, a figure that reflects only what's visible at the system level, not the compounding burden individuals carry.

"Healthcare costs are forcing Americans to make tradeoffs no one should have to face: skipping a test, delaying a specialist visit, or going without a prescription,” said Scott Cutler, HealthEquity President and CEO. “For employers, this is more than a benefits issue –it is a workforce health, productivity, and financial resilience issue. The urgency here cannot be overstated.”

Delayed Care As a Workforce Productivity Issue
The ripple effects of healthcare affordability pressure don't stop at the doctor's office. Nearly half of all respondents (48%) say they are more financially worried now than six months ago. Among younger workers, the anxiety is following them to work: Millennials are four times more likely than Boomers to report being highly distracted at work due to financial strain (32% vs. 8%).

The cost to employers is significant as workers lose an average of 7.3 hours of productivity each week due to financial stress, costing U.S. employers an estimated $183 billion annually. Healthcare affordability fuels a vicious cycle: employees under financial stress are not only distracted but more likely to delay or skip care, leading to worse health outcomes, higher absenteeism, and additional costs that ultimately land back on the employer's balance sheet.

HSAs Make a Measurable Difference
Having an HSA correlates with a fundamentally different relationship with healthcare costs. The Spring 2026 Pulse illustrates the real changes in how people think about, plan for, and absorb medical expenses. Across every metric, HSA holders demonstrate meaningfully stronger financial readiness:

Affordability: HSA holders are 43% more likely to say their healthcare expenses are mostly or completely affordable than non-HSA individualsPreparedness: 49% of HSA holders feel prepared to cover routine healthcare expenses, compared to 36% of non-HSA individualsSense of security: 88% of HSA holders say their account helps them feel financially prepared for healthcare expenses — at least somewhat — and 54% say it helps a great deal or quite a bitBenefits literacy: 72% of HSA holders understand their benefits very or extremely well, versus 64% of non-HSA individualsControl: HSA holders with strong benefits understanding are three times more likely to report "quite a bit of control" over healthcare costs (27% vs. 9%)
"When 88% of HSA holders say their HSA helps them feel more financially secure, the message is clear: HSAs fundamentally change how people experience healthcare costs,” Cutler continued. “The challenge now is scale. Employers should think about HSAs the way they think about retirement readiness, not as a benefits line item, but as a core part of workforce financial resilience.”

The HealthEquity Healthcare Affordability Pulse tracks American consumer sentiment on healthcare costs, financial preparedness, and economic wellbeing on a biannual basis. The Spring 2026 edition surveyed 1,031 full-time, part-time, and self-employed Americans who were primary or shared healthcare decision makers enrolled in employer-sponsored health plans between Feb. 11 and Feb. 26, 2026.

The full report, including detailed demographic breakdowns and methodology, is available for download at https://www2.healthequity.com/research/spring-2026-healthcare-affordability-pulse/.

About HealthEquity
HealthEquity and its subsidiaries administer HSAs and various other consumer-directed benefits for over 17 million accounts, working in close partnership with employers, benefits advisors, and health and retirement plan providers who share our unwavering commitment to our mission of saving and improving lives by empowering healthcare consumers. Through cutting-edge solutions, innovation, and a relentless focus on improving health outcomes, we empower individuals to take control of their healthcare journey while ultimately enhancing their overall well-being. For more information, visit www.healthequity.com.

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