HealthEquity Stock Jumps on Strong Q2 Earnings and Raised Outlook
The health savings account administrator beat analyst estimates for profit and revenue, signaling strong growth in HSA adoption.
Shares of HealthEquity, Inc. (NASDAQ: HQY) climbed more than 4.5% in after-hours trading Tuesday after the company and raised its full-year guidance, reflecting robust growth in its core health savings account (HSA) business.
The Draper, Utah-based company announced adjusted earnings per share of $1.08 for the second quarter of fiscal year 2026, handily beating the 92 cents per share that Wall Street analysts had anticipated. Quarterly revenue also surpassed forecasts, coming in at $325.83 million against an estimated $320.82 million.
The positive results were driven by solid growth in key business metrics. HealthEquity reported a 6% year-over-year increase in the number of HSAs to 10.0 million. Total assets held in those accounts grew 12% to $33.1 billion, demonstrating increasing adoption and investment by consumers. The company's total accounts, including complementary consumer-directed benefits (CDBs), rose 5% to 17.1 million.
"The HealthEquity team delivered continued momentum during our second quarter with strong 9% revenue growth, record gross margin of 71% and record adjusted EBITDA of $151 million," said CEO Scott Cutler in a statement. Cutler also pointed to a bright future for the industry, noting that lawmakers are providing the "largest since 2006."
Buoyed by the strong performance, HealthEquity raised its fiscal 2026 outlook. The company now projects adjusted EPS between $3.74 and $3.91, up from previous estimates and ahead of the $3.72 consensus. It also lifted its revenue guidance to a range of $1.29 billion to $1.31 billion. This confident forecast suggests management expects the current business momentum to continue through the fiscal year, a signal that resonated positively with investors during the .
Following the release, HealthEquity's stock price rose 4.66% to $92.99 in extended trading, reflecting investor confidence in the company's growth trajectory and its leadership position in the expanding market for tax-advantaged health savings plans.