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HealthEquity (HQY) Q4 EPS Plunges 42.6% YoY to $0.95, Misses Estimates Despite $334.6M Revenue Beat

Earnings Per Share (adj.)
$0.95
vs $0.90 est.
Revenue
$334.6M
vs $332.8M est.

GAAP earnings miss consensus. HealthEquity, Inc. (HQY) reported GAAP diluted EPS of $0.58 for Q4 fiscal 2026, missing the analyst consensus of $0.90 by 35.4%. The health information services provider posted adjusted EPS of $0.95, which also fell short of expectations. Net income came in at $49.7 million, while adjusted net income reached $81.8 million with adjusted EBITDA of $132.9 million. The shortfall marks a departure from the company’s recent track record of consecutive earnings beats in prior quarters.

Revenue edges past estimates. Revenue of $334.6 million topped the consensus estimate of $332.8 million by 0.5%, representing 7.3% growth versus the year-ago quarter’s $311.8 million. The top-line performance reflects sequential stability, matching Q3 2026’s $334.6 million result. Despite the revenue beat, the 42.6% year-over-year decline in GAAP EPS from $1.01 in Q4 2025 suggests margin pressure or elevated expenses that offset the revenue expansion.

Fiscal 2027 guidance in focus. Management issued fiscal 2027 guidance calling for GAAP EPS of $2.78 to $2.85 on revenue of $1.41 billion to $1.42 billion. The Street’s 15 analysts maintain a bullish stance with 14 Buy or Strong Buy ratings against just one Sell. The stock closed at $77.81, trading well below its 52-week high of $116.65.

What to Watch: The gap between adjusted EPS ($0.95) and GAAP EPS ($0.58) warrants scrutiny on the next earnings call—investors should press management on the sustainability of adjustments and the path to margin recovery in fiscal 2027. The webcast replay is available for detailed commentary on cost structure and profitability drivers.

This article was generated using AlphaStreet’s proprietary financial analysis technology and reviewed by our editorial team.

Tags: HQY
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