HealthEquity Q1 revenue rises, slightly beats estimates

HealthEquity

28/05/2026 21:16

Overview
U.S. HSA custodian's fiscal Q1 revenue rose 7%, slightly beating analyst expectations
Adjusted EBITDA for fiscal Q1 beat analyst expectations, rising 17% yr/yr
Company increased share repurchase program by $1 bln after $123 mln in Q1 buybacks

Outlook
Healthequity expects for the fiscal year ending January 31,2027 revenue of $1.410 bln to $1.420 bln
Company sees fiscal 2027 net income of $242 mln to $248 mln, EPS of $2.88 to $2.95
Healthequity expects fiscal 2027 Adjusted EBITDA of $625 mln to $633 mln

Result Drivers
HSA ACCOUNT AND ASSET GROWTH - Co said increases in HSA accounts and total HSA assets supported revenue and profit growth
MEMBER ENGAGEMENT AND OPERATING LEVERAGE - Co cited deeper member engagement and technology-enabled efficiency as factors driving margin expansion and profitability
REVENUE INCREASED- Service, Custodial and Interchange revenue increased compared to last year, which helped overall results

Company press release: ID:nGNX1Zvtm3

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Slight Beat*
$354.64 mln
$351.99 mln (15 Analysts)
Q1 Net Income
Miss
$69.42 mln
$96.15 mln (11 Analysts)
Q1 Adjusted EBITDA
Beat
$164.50 mln
$152.32 mln (15 Analysts)
Q1 Pretax Profit
Miss
$92.41 mln
$121.41 mln (8 Analysts)
Q1 Gross Profit
 
$256.31 mln
 
Q1 Operating Expenses
 
$153.36 mln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", no "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for Healthequity Inc is $110.00, about 27.1% above its May 27 closing price of $86.56
The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 19 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)