Shares of HealthEquity (HQY) surged 5.09% in pre-market trading on Wednesday following the company's impressive second-quarter fiscal 2026 results and raised full-year guidance. The leading provider of Health Savings Account (HSA) custodial services in the United States continues to demonstrate strong financial performance and strategic growth.
HealthEquity reported a 9% year-over-year increase in revenue, reaching $325.8 million for Q2. More notably, the company's net income jumped by 67% to $59.9 million, while adjusted earnings per share came in at $1.08, marking a 26% increase from the previous year. The robust financial results were driven by solid asset growth, cost improvements, and a strategic focus on digital adoption and security measures.
Following these strong results, HealthEquity's management raised its full-year guidance for fiscal 2026. The company now projects revenue between $1.290 billion and $1.310 billion, with adjusted EBITDA expected to range from $540 million to $560 million. This optimistic outlook has further fueled investor confidence in the stock.
Analysts have responded positively to HealthEquity's performance, with several firms maintaining their buy ratings and raising price targets. JPMorgan analyst Alexei Gogolev increased the firm's price target to $126 from $125, while maintaining an Overweight rating. The average analyst price target now stands at $121.93, reflecting the market's bullish sentiment on HealthEquity's growth prospects.