HealthEquity

HQY

Market cap $7.57B

HQY tops Q1 FY27 EPS and revenue estimates as HSA accounts and assets climb, and guidance for FY27 revenues and adjusted EPS rises.

HealthEquity, Inc. (HQY) Q1 2027 Earnings Call Transcript

While the top- and bottom-line numbers for HealthEquity (HQY) give a sense of how the business performed in the quarter ended April 2026, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.

HealthEquity (HQY) 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.

HealthEquity NASDAQ: HQY raised its fiscal 2027 outlook after reporting higher first-quarter profitability, record revenue in key categories and expanded margins, with management pointing to account growth, deeper member engagement and operating efficiencies from technology and artificial intelligence.

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.

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.

HealthEquity (HQY) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #2 (Buy).

Looking beyond Wall Street's top-and-bottom-line estimate forecasts for HealthEquity (HQY), delve into some of its key metrics to gain a deeper insight into the company's potential performance for the quarter ended April 2026.

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