Shares of HealthEquity (NASDAQ:HQY) sank over 18% intra-day today following a weaker-than-expected fourth-quarter earnings report and subdued guidance for 2026, dampening investor sentiment despite strong revenue growth.
For the quarter, the company reported adjusted earnings per share of $0.69, falling short of the $0.72 consensus estimate. However, revenue climbed 19% year-over-year to $311.8 million, surpassing forecasts of $305.82 million.
Looking ahead, HealthEquity’s fiscal 2026 outlook fell slightly below expectations. The company projected earnings per share between $3.57 and $3.74, aligning closely with the $3.66 analyst consensus, while revenue guidance of $1.28 billion to $1.305 billion came in just below the expected $1.309 billion.
Despite the disappointing earnings, HealthEquity continues to see strong HSA growth. The company ended the quarter with 9.9 million health savings accounts, reflecting a 14% increase year-over-year, while total HSA assets surged 27% to $32.1 billion.
For fiscal 2025, HealthEquity posted $1.2 billion in revenue, a 20% annual increase, with adjusted EBITDA rising 28% to $471.8 million, representing 39% of total revenue, up from 37% in the prior year.