Healthequity 2026 Q3 Earnings Surpasses Forecasts, Net Income Soars 806%

HealthEquity (HQY) reported fiscal 2026 Q3 earnings on Dec 3, 2025, surpassing analyst expectations with a 10.99% EPS beat and 0.4% revenue outperformance. The company raised FY26 guidance for revenue, net income, and adjusted EBITDA, reflecting strong operational momentum and market confidence.

Revenue

HealthEquity’s total revenue rose 7.2% year-over-year to $322.16 million in Q3 2026, driven by robust performance across its core segments. Service revenue led the growth at $120.29 million, supported by expanded platform capabilities and increased client adoption. Custodial revenue followed at $159.07 million, reflecting stable account management and transaction volumes. Interchange revenue contributed $42.81 million, bolstered by higher HSA-eligible transaction activity. The diversified revenue streams underscore the company’s resilience and scalability in the healthcare savings market.

Earnings/Net Income

The company’s earnings surged dramatically, with EPS jumping 757.1% to $0.60 in Q3 2026 from $0.07 in the prior year. Net income reached $51.69 million, an 806.4% increase, marking a record high for Q3 in 13 years. This exceptional growth highlights HealthEquity’s ability to leverage cost efficiencies and scale its high-margin business model.

Post-Earnings Price Action Review

A strategy of purchasing HealthEquity shares following its Q3 2026 earnings report and holding for 30 days yielded a cumulative return of 24.5% over three years, averaging 7.8% annually. This performance suggests a compelling medium-term investment opportunity, given the company’s consistent earnings growth and strategic tailwinds in the HSA market.

CEO Commentary

CEO Scott Cutler emphasized HealthEquity’s 7% revenue growth, 806% net income surge, and 20% adjusted EBITDA expansion, driven by 71% gross margins. Strategic initiatives include AI-driven claims automation, enhanced mobile security, and a new direct HSA enrollment platform for ACA Bronze plans. Cutler expressed optimism about Q4 demand for HSAs amid rising healthcare costs and legislative support, while cautioning on fraud mitigation and macroeconomic risks.

Guidance

HealthEquity raised FY26 guidance: $1.302–1.312 billion in revenue, $197–205 million in GAAP net income ($2.24–2.33 EPS), and $341–348 million in non-GAAP net income ($3.87–3.95 EPS). Adjusted EBITDA is projected at $555–565 million, with 44% margins and continued share repurchases under a $259 million authorization.

Additional News

HealthEquity launched a GLP-1 platform and direct HSA enrollment service on Oct 14, 2025, enhancing access to healthcare savings solutions. The company also returned $93.7 million to shareholders via buybacks in Q3, reflecting its commitment to capital efficiency. These moves align with its long-term strategy to expand HSA adoption and invest in AI-driven innovation, positioning it as a leader in the evolving healthcare savings landscape.

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