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.
HQY rides on strong HSA growth, AI-driven efficiency gains and solid Q4 results, though data security threats remain a key risk.
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HealthEquity (HQY) reported earnings 30 days ago. What's next for the stock?
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HealthEquity is upgraded from 'Hold' to 'Buy,' reflecting visible operating leverage and durable growth drivers. HQY's fiscal Q4 2026 saw 7% revenue growth, 500+ bps margin expansion, and 23% adjusted EBITDA growth, signaling an earnings inflection. Structural tailwinds include expanded HSA eligibility, rising engagement, and a shift toward higher-value, compounding accounts.
Whether you're a value, growth, or momentum investor, finding strong stocks becomes easier with the Zacks Style Scores, a top feature of the Zacks Premium research service.
HQY rides on strong HSA growth, AI-driven efficiency gains and solid Q4 results, though data security threats remain a key risk.
The Zacks Style Scores offers investors a way to easily find top-rated stocks based on their investing style. Here's why you should take advantage.
HealthEquity is upgraded to a buy, with ~25% upside potential over the next year as custodial revenue normalizes and legislative tailwinds strengthen. Shares trade at ~17x forward earnings, with EPS expected to grow 15% in FY27 and at least 10% in calendar 2027, driven by repricing of cash yields. Secular HSA account growth, an improved legislative environment, and rising custodial yields underpin HQY's earnings visibility and margin expansion.