Did HCA Healthcare beat or miss consensus estimates last quarter?

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What were the key takeaways from HCA Healthcare's earnings call?

What is the revenue and EPS growth rate for HCA Healthcare year over year?

- **Revenue Growth**: 9.6% Q3 revenue increase, driven by volume and Medicaid supplements, with 42% EPS growth.
- **Margin Expansion**: Adjusted EBITDA margin improved due to cost control and Medicaid programs ($240M Q3 benefit).
- **2025 Guidance**: EPS raised to $27-$28, with $250M-$350M Medicaid supplement net benefit.
- **2026 Outlook**: 2-3% volume growth expected, with cautious federal policy outlook.
- **AI and Efficiency**: Piloting AI tools for documentation and revenue cycle, with strong cash flow conversion (>50%).

**【CEO Summary Section】**
- **Strong Q3 Results**: Diluted EPS grew 42% YoY, driven by 9.6% revenue increase from volume growth, improved payer mix, and Medicaid supplemental programs. Adjusted EBITDA margin expanded due to cost control.
- **Resiliency Plan Progress**: Teams executed on operational efficiency, digital tools, and capacity expansion, with a focus on 2026 demand outlook of 2-3% volume growth and stable cost trends.
- **Federal Policy Impact**: Advocacy for premium tax credit extensions continues amid uncertainty, with potential impacts on 2026 volumes and costs.

**【CFO Financial Commentary】**
- **Revenue Growth Drivers**: Same-facility admissions up 2.4%, surgical volumes stable, and net revenue per admission boosted by Medicaid supplements ($240M Q3 benefit). Exchange and Medicare growth offset self-pay decline.
- **Expense Management**: Operating expenses controlled, with contract labor flat YoY. Medicaid supplements added $250M-$350M full-year EBITDA benefit, excluding pending state approvals.
- **Capital Allocation**: $2.5B share buybacks and $1.3B capex, with strong cash flow ($4.4B Q3) supporting balance sheet strength.
- **Guidance Update**: Full-year 2025 EPS raised to $27-$28, reflecting operational performance and Medicaid supplements. 2026 outlook cautious on federal policy but confident in 2-3% volume growth.

**【Q&A Highlights】**
- **Medicaid Supplements**: Tennessee, Texas, and Kansas approvals drove Q3 benefits, with potential $250M-$350M 2025 net gain. Florida, Georgia, and Virginia grandfathered programs pending CMS review.
- **Hurricane Recovery**: 2025 EBITDA expected to recover $100M of 2024's $250M hurricane impact, with lingering North Carolina costs.
- **AI Adoption**: Ambient AI tools for clinical documentation and revenue cycle automation are piloting, with focus on denial management.
- **Cash Flow Conversion**: Strong working capital management and deferred taxes drove 50%+ EBITDA-to-free cash flow, sustainable with disciplined operations.


HCA Healthcare, Inc. (HCA) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

HCA

HCA fundamentals

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