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Equity Residential (EQR) M&A Call Transcript

Apartment REITs benefit from rising mortgage rates and affordability constraints, as more households are forced to rent rather than buy. Supply pressures in multifamily are easing, with construction starts slowing and absorption now exceeding new deliveries, setting up for improved fundamentals. The AVB/EQR merger creates a $50B market cap leader, aiming for scale, cost synergies, and enhanced capital access in a challenging rate environment.

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NEW YORK CITY & NEW ORLEANS--(BUSINESS WIRE)--Former Attorney General of Louisiana Charles C. Foti, Jr., Esq. and the law firm of Kahn Swick & Foti, LLC (“KSF”) are investigating the proposed sale of AvalonBay Communities, Inc. (NYSE: AVB) to Equity Residential (NYSE: EQR). Under the terms of the proposed transaction, shareholders of AvalonBay will receive 2.793 shares of Equity Residential for each share of AvalonBay that they own. KSF is seeking to determine whether this consideration and the process that led to it are adequate, or whether the consideration undervalues the Company.

If you believe that this transaction undervalues the Company and/or if you would like to discuss your legal rights regarding the proposed sale, you may, without obligation or cost to you, e-mail or call KSF Managing Partner Lewis S. Kahn ([email protected]) toll free at any time at 855-768-1857, or visit https://www.ksfcounsel.com/cases/nyse-avb/ to learn more.

To learn more about KSF, whose partners include the Former Louisiana Attorney General, visit www.ksfcounsel.com.

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NEW YORK, May 27, 2026 (GLOBE NEWSWIRE) --

Class Action Attorney Juan Monteverde with Monteverde & Associates PC (the “M&A Class Action Firm”), has recovered millions of dollars for shareholders and is recognized as a Top 50 Firm in the 2025 ISS Securities Class Action Services Report. We are headquartered at the Empire State Building in New York City and are investigating

AvalonBay Communities, Inc. (NYSE: AVB) related to its sale to Equity Residential. Under the terms of the proposed transaction, AvalonBay shareholders are expected to receive 2.793 shares of Equity Residential common stock for each share of AvalonBay common stock.
Click here for more information https://monteverdelaw.com/case/avalonbay-communities-inc/. It is free and there is no cost or obligation to you.

Equity Residential (NYSE: EQR) related to its merger with AvalonBay Communities, Inc. Upon closing of the proposed transaction, Equity Residential shareholders will own approximately 48.8% of the combined company.
Click here for more information https://monteverdelaw.com/case/equity-residential/. It is free and there is no cost or obligation to you.

Select Medical Holdings Corporation (NYSE: SEM) related to its sale to a consortium led by Select Medical executives and directors. Under the terms of the proposed transaction, Select Medical shareholders are expected to receive $16.50 per share in cash.
ACT NOW. The Shareholder Vote is scheduled for June 26, 2026.

Click here for more information https://monteverdelaw.com/case/select-medical-holdings-corporation/. It is free and there is no cost or obligation to you.

Sila Realty Trust, Inc. (NYSE: SILA) related to its sale to Sunshine Ultimate Parent LLC. Under the terms of the proposed transaction, Sila Realty shareholders are expected to receive $30.38 in cash per share.
ACT NOW. The Shareholder Vote is scheduled for June 26, 2026.

Click here for more info https://monteverdelaw.com/case/sila-realty-trust-inc/. It is free and there is no cost or obligation to you.

NOT ALL LAW FIRMS ARE THE SAME. Before you hire a law firm, you should talk to a lawyer and ask:

Do you file class actions and go to Court?When was the last time you recovered money for shareholders?What cases did you recover money in and how much?
About Monteverde & Associates PC

Our firm litigates and has recovered money for shareholders…and we do it from our offices in the Empire State Building. We are a national class action securities firm with a successful track record in trial and appellate courts, including the U.S. Supreme Court. 

No company, director or officer is above the law. If you own common stock in the above listed company and have concerns or wish to obtain additional information free of charge, please visit our website or contact Juan Monteverde, Esq. either via e-mail at [email protected] or by telephone at (212) 971-1341.

Contact:
Juan Monteverde, Esq.
MONTEVERDE & ASSOCIATES PC
The Empire State Building
350 Fifth Ave. Suite 4740
New York, NY 10118
United States of America
[email protected]
Tel: (212) 971-1341

Attorney Advertising. (C) 2026 Monteverde & Associates PC. The law firm responsible for this advertisement is Monteverde & Associates PC (www.monteverdelaw.com).  Prior results do not guarantee a similar outcome with respect to any future matter.

Insiders may stand to receive substantial financial benefits not available to ordinary shareholders.

The proposed transactions may contain terms that could limit superior competing offers.

Shareholders are encouraged to contact the firm to discuss their rights and options at no cost or obligation. We would handle any matter on a contingent fee basis, whereby you would not be responsible for out-of-pocket payment of our legal fees or expenses.

, /PRNewswire/ -- Halper Sadeh LLC, an investor rights law firm, is investigating the following companies for potential violations of the federal securities laws and/or breaches of fiduciary duties to shareholders relating to:

AvalonBay Communities, Inc. (NYSE: AVB)'s sale to Equity Residential for 2.793 shares of Equity Residential common stock for each share of AvalonBay common stock. If you are an AvalonBay shareholder, click here to learn more about your rights and options.

Equity Residential (NYSE: EQR)'s merger with AvalonBay Communities, Inc. Upon closing of the proposed transaction, Equity Residential shareholders will own approximately 48.8% of the combined company. If you are an Equity Residential shareholder, click here to learn more about your rights and options.

Axalta Coating Systems Ltd. (NYSE: AXTA)'s sale to Akzo Nobel N.V. for 0.6539 shares of AkzoNobel stock for each share of Axalta common stock. If you are an Axalta shareholder, click here to learn more about your rights and options.

LivePerson, Inc. (NASDAQ: LPSN)'s sale to SoundHound AI, Inc. for an equity value of $43 million. If you are a LivePerson shareholder, click here to learn more about your rights and options.

On behalf of shareholders, Halper Sadeh LLC may seek increased consideration, additional disclosures and information, or other relief and benefits.

Halper Sadeh LLC represents investors all over the world who have fallen victim to securities fraud and corporate misconduct. Our attorneys have been instrumental in implementing corporate reforms and recovering millions of dollars on behalf of defrauded investors.

Attorney Advertising. Prior results do not guarantee a similar outcome.

Contact Information:
Halper Sadeh LLC
Daniel Sadeh, Esq.
Zachary Halper, Esq.
One World Trade Center
85th Floor
New York, NY 10007
(212) 763-0060
[email protected]
[email protected]
https://www.halpersadeh.com

SOURCE Halper Sadeh LLP

Also from this source

Insiders may stand to receive substantial financial benefits not available to ordinary shareholders.

The proposed transactions may contain terms that could limit superior competing offers.

Shareholders are encouraged to contact the firm to discuss their rights and options at no cost or obligation. We would handle any matter on a contingent fee basis, whereby you would not be responsible for out-of-pocket payment of our legal fees or expenses.

, /PRNewswire/ -- Halper Sadeh LLC, an investor rights law firm, is investigating the following companies for potential violations of the federal securities laws and/or breaches of fiduciary duties to shareholders relating to:

Taylor Morrison Home Corporation (NYSE: TMHC)'s sale to Berkshire Hathaway Inc. for $72.50 per common share in cash. If you are a Taylor Morrison shareholder, click here to learn more about your legal rights and options.

LiveRamp Holdings, Inc. (NYSE: RAMP)'s sale to Publicis Groupe for $38.50 per share. If you are a LiveRamp shareholder, click here to learn more about your legal rights and options.

Equity Residential (NYSE: EQR)'s merger with AvalonBay Communities, Inc. Upon closing of the proposed transaction, Equity Residential shareholders will own approximately 48.8% of the combined company. If you are an Equity Residential shareholder, click here to learn more about your rights and options.

On behalf of shareholders, Halper Sadeh LLC may seek increased consideration, additional disclosures and information, or other relief and benefits.

Halper Sadeh LLC represents investors all over the world who have fallen victim to securities fraud and corporate misconduct. Our attorneys have been instrumental in implementing corporate reforms and recovering millions of dollars on behalf of defrauded investors.

Attorney Advertising. Prior results do not guarantee a similar outcome.

Contact Information:
Halper Sadeh LLC
Daniel Sadeh, Esq.
Zachary Halper, Esq.
One World Trade Center
85th Floor
New York, NY 10007
(212) 763-0060
[email protected]
[email protected]
https://www.halpersadeh.com

SOURCE Halper Sadeh LLP

Assenagon Asset Management S.A. increased its stake in shares of Performance Food Group Company (NYSE: PFGC) by 10.3% in the undefined quarter, according to its most recent 13F filing with the SEC. The firm owned 490,701 shares of the food distribution company's stock after buying an additional 45,867 shares during the period. Assenagon

RICHMOND, Va.--(BUSINESS WIRE)--Performance Food Group Company to Host Webcast of Third-Quarter Fiscal 2026 Results.

RICHMOND, Va.--(BUSINESS WIRE)--Performance Food Group Company Reports Third-Quarter and First-Nine Months Fiscal 2026 Results.

Performance Food Group Company (PFGC) Q3 2026 Earnings Call Transcript

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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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.

Media Contact
[email protected]

Posted by Defense World Staff on Apr 7th, 2026

Allspring Global Investments Holdings LLC grew its holdings in Tanger Inc. (NYSE:SKT – Free Report) by 31.6% during the fourth quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 154,759 shares of the real estate investment trust’s stock after purchasing an additional 37,163 shares during the period. Allspring Global Investments Holdings LLC owned about 0.13% of Tanger worth $5,124,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds and other institutional investors have also bought and sold shares of SKT. Invesco Ltd. increased its stake in Tanger by 127.0% in the second quarter. Invesco Ltd. now owns 2,036,716 shares of the real estate investment trust’s stock worth $62,283,000 after purchasing an additional 1,139,288 shares during the period. GRS Advisors LLC increased its stake in Tanger by 98.9% in the second quarter. GRS Advisors LLC now owns 1,889,097 shares of the real estate investment trust’s stock worth $57,769,000 after purchasing an additional 939,424 shares during the period. Schonfeld Strategic Advisors LLC increased its stake in Tanger by 2,190.0% in the third quarter. Schonfeld Strategic Advisors LLC now owns 832,777 shares of the real estate investment trust’s stock worth $28,181,000 after purchasing an additional 796,411 shares during the period. American Century Companies Inc. increased its stake in Tanger by 1,459.4% in the third quarter. American Century Companies Inc. now owns 787,880 shares of the real estate investment trust’s stock worth $26,662,000 after purchasing an additional 737,354 shares during the period. Finally, Cbre Investment Management Listed Real Assets LLC grew its position in shares of Tanger by 6,186.3% during the 3rd quarter. Cbre Investment Management Listed Real Assets LLC now owns 721,599 shares of the real estate investment trust’s stock worth $24,419,000 after buying an additional 710,120 shares in the last quarter. Hedge funds and other institutional investors own 85.23% of the company’s stock.

Analyst Upgrades and Downgrades A number of equities analysts have recently issued reports on the company. Compass Point downgraded Tanger from a “buy” rating to a “neutral” rating and set a $38.00 price target on the stock. in a research report on Thursday, February 26th. Bank of America reissued a “neutral” rating and set a $39.00 price target on shares of Tanger in a research report on Friday, March 6th. Weiss Ratings reissued a “buy (b)” rating on shares of Tanger in a research report on Wednesday, January 21st. Barclays increased their price target on Tanger from $36.00 to $38.00 and gave the stock an “equal weight” rating in a research report on Monday, March 2nd. Finally, Scotiabank increased their price target on Tanger from $34.00 to $36.00 and gave the stock a “sector perform” rating in a research report on Tuesday, March 24th. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and six have issued a Hold rating to the company’s stock. According to MarketBeat.com, Tanger currently has a consensus rating of “Hold” and an average price target of $36.71.

View Our Latest Stock Report on Tanger

Tanger Price Performance Shares of SKT stock opened at $35.01 on Tuesday. Tanger Inc. has a 1-year low of $28.69 and a 1-year high of $37.95. The stock’s 50-day moving average is $34.70 and its 200 day moving average is $33.85. The company has a market cap of $4.01 billion, a P/E ratio of 35.01, a PEG ratio of 1.65 and a beta of 1.20. The company has a debt-to-equity ratio of 2.17, a current ratio of 0.40 and a quick ratio of 0.40.

Tanger Dividend Announcement The firm also recently declared a quarterly dividend, which was paid on Friday, February 13th. Shareholders of record on Friday, January 30th were issued a $0.2925 dividend. This represents a $1.17 annualized dividend and a yield of 3.3%. The ex-dividend date of this dividend was Friday, January 30th. Tanger’s dividend payout ratio (DPR) is currently 117.00%.

About Tanger (Free Report)

Tanger Factory Outlet Centers, Inc (NYSE: SKT) is a real estate investment trust specializing in the ownership, development and management of outlet shopping centers. The company’s portfolio comprises more than 40 outlet properties anchored by leading fashion and lifestyle brands. Tanger’s centers are designed to offer off-price retail experiences in open-air, community-oriented settings, providing value-focused shoppers with access to premium brands at reduced prices.

Founded in 1981 by Stanley K.

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GREENSBORO, N.C.--(BUSINESS WIRE)--Tanger® (NYSE: SKT), a leading owner and operator of outlet and other open-air retail shopping destinations, announced today that its Board of Directors approved a 6.8% increase in the dividend on its common shares from $1.17 to $1.25 per share on an annualized basis. Simultaneously, the Board of Directors declared a quarterly cash dividend of $0.3125 per share, payable on May 15, 2026 to common shareholders of record on April 30, 2026. “Our dividend increase.

Key Takeaways Five dividend stocks raise payouts as inflation, rates and geopolitical risks fuel market volatility.SKT declared a 31-cent dividend, marking eight hikes in five years with a 50% payout ratio.JNJ, STZ, FNB and KNOP also lifted payouts, signaling stable financials amid uncertainty. The U.S. economic landscape remains resilient. However, investors should remain cautious due to various domestic and geopolitical uncertainties. Inflation remains the primary concern as energy costs begin to bite. The Consumer Price Index jumped to 3.3% over the last 12 months in March, driven by a 21.2% spike in gasoline prices. While core inflation remains relatively stable at 2.6%, the wholesale side is seeing pressure, with the Producer Price Index hitting 4% year over year.

Looking ahead, the near-term outlook is heavily influenced by geopolitical developments, particularly the conflict in the Middle East, which has caused massive volatility in energy prices. However, hopes for a truce have brought some stability to oil prices. At the same time, ongoing conflicts involving Russia and Ukraine, as well as U.S.-China trade uncertainties, also pose downside risks. These factors can disrupt global supply chains, energy prices and global trade flows, which will eventually nudge inflation higher. The Federal Reserve has adopted a "wait-and-see" approach, holding interest rates between 3.5% and 3.75%. Elevated interest rates could negatively influence borrowing costs and corporate investment decisions.

As a result, cautious investors can diversify their portfolios and pick dividend-paying stocks. Some of the prominent names are: TANGER INC (SKT - Free Report) , F.N.B. (FNB - Free Report) , Johnson & Johnson (JNJ - Free Report) , Constellation Brands (STZ - Free Report) andKNOT Offshore Partners (KNOP - Free Report) . Companies that pay out dividends consistently indicate a healthy business model. Stocks that have raised dividends recently exhibit a sound financial structure and can counter market upheavals. Moreover, stocks that tend to reward investors with a high dividend payout outperform non-dividend-paying entities in a highly volatile market.

TANGER INCTANGER INC is a real estate investment trust, which acts as an operator of upscale open-air outlet centers, fully or partially owns and manages a portfolio of shopping centers principally in U.S. states and Canada. This Greensboro, NC-based company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

On April 13, SKT declared that its shareholders would receive a dividend of 31 cents a share on May 15, 2026. SKT has a dividend yield of 3.2%.

Over the past five years, SKT has increased its dividend eight times, and its payout ratio presently sits at 50% of earnings. Check TANGER’s dividend history here.

F.N.B.F.N.B. is headquartered in Pittsburgh, PA. This Zacks Rank #3 (Hold) company provides a variety of banking and financial services through its subsidiaries.

On April 14, FNB declared that its shareholders would receive a dividend of 13 cents a share on June 15, 2026. FNB has a dividend yield of 2.7%.

In the past five years, FNB has increased its dividend once. Its payout ratio is currently 30% of earnings. Check F.N.B.’s dividend history here.

Johnson & JohnsonJohnson & Johnson innovates, produces and distributes diverse medical products worldwide. This New Brunswick, NJ-based company currently carries a Zacks Rank #3.

On April 14, JNJ announced that its shareholders would receive a dividend of $1.34 a share on June 9, 2026. JNJ has a dividend yield of 2.2%.

Over the past five years, JNJ has increased its dividend six times. Its payout ratio now sits at 48% of earnings. Check Johnson & Johnson's dividend history here.

Constellation BrandsConstellation Brands produces and markets beer, wine and spirits. The Zacks Rank #3 company operates from Rochester, NY.

On April 8, STZ declared that its shareholders would receive a dividend of $1.03 a share on May 14, 2026. STZ has a dividend yield of 2.5%.

Over the past five years, STZ has increased its dividend six times, and its payout ratio presently sits at 35% of earnings. Check Constellation Brands' dividend history here.

KNOT Offshore PartnersKNOT Offshore Partners is headquartered in Aberdeen, United Kingdom. This Zacks Rank #3 company is engaged in owning, acquiring and operating shuttle tankers, designed to transport crude oil and condensates from offshore oil field installations to onshore terminals and refineries.

On April 7, KNOP declared that its shareholders would receive a dividend of 5 cents a share on May 14, 2026. KNOP has a dividend yield of 1%.

In the past five years, KNOP has increased its dividend once. Its payout ratio is currently 9% of earnings. Check KNOT Offshore Partners’ dividend history here.

GREENSBORO, N.C.--(BUSINESS WIRE)--Tanger® (NYSE:SKT), a leading owner and operator of outlet and other open-air retail shopping destinations, today reported financial results and operating metrics for the three months ended March 31, 2026. “Tanger's successful execution of its growth strategy delivered another quarter of strong financial and operating results, contributing to an increase in our full-year guidance,” said Stephen Yalof, President and Chief Executive Officer. “Through our proven.

Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.

While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.

Based in Greensboro, Tanger (SKT - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of 11.12%. Currently paying a dividend of $0.29 per share, the company has a dividend yield of 3.37%. In comparison, the REIT and Equity Trust - Retail industry's yield is 4%, while the S&P 500's yield is 1.39%.

Looking at dividend growth, the company's current annualized dividend of $1.25 is up 8.4% from last year. Over the last 5 years, Tanger has increased its dividend 4 times on a year-over-year basis for an average annual increase of 14.37%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Tanger's current payout ratio is 50%, meaning it paid out 50% of its trailing 12-month EPS as dividend.

SKT is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2026 is $2.46 per share, with earnings expected to increase 5.58% from the year ago period.

Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. But, not every company offers a quarterly payout.

For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, SKT is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).