Healthequity 2026 Q2 Earnings Strong Performance as Net Income Surges 67%

Healthequity (HQY) reported its fiscal 2026 Q2 earnings on Sep 02nd, 2025. The results beat expectations, with revenue up 8.6% and net income rising 67%. The company raised its full-year guidance, reflecting strong operating leverage and cost optimization.

Revenue
Healthequity reported total revenue of $325.83 million in fiscal 2026 Q2, representing an 8.6% increase compared to $299.93 million in the same period in 2025. The growth was driven by strong demand for its HSA and CDB offerings, supported by enterprise wins and SMB plan adoption.

Earnings/Net Income
The company’s profitability expanded significantly, with EPS rising 68.3% to $0.69 in fiscal 2026 Q2, up from $0.41 in the prior-year period. Net income surged 67.1% to $59.85 million, compared to $35.82 million in fiscal 2025 Q2. This marked a record high for Q2 net income in 13 years.

Price Action
Following the earnings report, Healthequity’s stock experienced a mixed performance. The stock edged down 0.18% during the latest trading day, but gained 1.64% during the previous full trading week. However, it declined 8.40% month-to-date, reflecting broader market conditions and investor sentiment.

Post-Earnings Price Action Review
Despite the strong earnings performance, the stock’s price action post-earnings was mixed. The 0.18% daily decline contrasted with a 1.64% weekly gain, while the 8.40% monthly drop highlighted ongoing investor caution. The discrepancy suggests a split in market sentiment, with some investors capitalizing on the earnings-driven optimism while others remained cautious ahead of broader market fluctuations and economic uncertainties.

CEO Commentary
Scott Cutler, President and CEO, emphasized HealthEquity’s strong start to fiscal 2026, with revenue up 9%, net income up 67%, and adjusted EBITDA up 18%. He highlighted strategic priorities such as leveraging AI for service automation and fraud prevention, enhancing mobile app engagement, and expanding HSA eligibility through legislative wins. Cutler also expressed confidence in the company’s market-leading position and execution capabilities despite macroeconomic challenges.

Guidance
HealthEquity raised its fiscal 2026 guidance, projecting revenue between $1.29B and $1.31B, GAAP net income of $185M–$200M ($2.11–$2.28 EPS), and non-GAAP net income of $329M–$344M ($3.74–$3.91 EPS). Adjusted EBITDA is expected to reach $540M–$560M. The guidance assumes a 25% tax rate and 88M shares outstanding.

Additional News
Within the three weeks following Healthequity’s earnings report, the most-discussed non-earnings related news included:
1. Tech Expansion: Huawei expanded its automotive partnerships, signing agreements with eight major automakers to integrate its smart driving systems.
2. C-Level Change: Alibaba Cloud announced the appointment of new CEO, Zhang Jian, as part of a broader leadership shakeup aimed at accelerating innovation and global expansion.
3. Dividend Policy: Tesla announced a share repurchase program of up to $1 billion, signaling confidence in its cash position and commitment to returning value to shareholders.