HealthEquity shares declined 7.6% in pre-market trading after the company reported second-quarter fiscal 2027 results that, while exceeding analyst expectations on revenue and earnings, included a cautious outlook that weighed on sentiment.
The company posted revenue of $350.7 million, an 8% increase from the prior year and slightly above the $349.22 million consensus. Non-GAAP net income per diluted share rose 15% to $1.24, matching the prior quarter’s figure and surpassing the $1.19 estimate. Adjusted EBITDA margin reached a record 48%, while Health Savings Account (HSA) accounts grew to 10.7 million, with assets totaling nearly $38 billion.
Despite these milestones, the company’s stock retreated as management raised fiscal 2027 guidance without providing specific numerical targets. CEO Scott Cutler highlighted the record operational metrics but did not address the market’s reaction to the outlook.
The broader market showed resilience, with the NASDAQ up 0.8% and the S&P 500 gaining 0.3% during the session. Treasury yields had risen the previous day following the release of annual Personal Consumption Expenditures (PCE) data, which showed headline growth of 3.7% and core growth of 3.3%.
Analysts had maintained a bullish stance ahead of the report, with an average 12-month price target of $118.53 and no sell recommendations among the 15 firms covering the stock.
