How HealthEquity’s Rising Revenue and Upbeat Guidance Could Shape the HQY Investment Outlook

• HealthEquity recently reported its second-quarter earnings for the period ended July 31, 2025, with revenue rising to US$325.84 million and net income increasing to US$59.85 million compared to the same quarter last year; the company also updated its full-year outlook and announced continued progress on its share buyback program.
• This period saw HealthEquity gain further attention with new analyst coverage and strong management commentary, underscoring growing confidence in its operational performance and future prospects.
• We'll review how HealthEquity’s continued revenue growth and updated guidance may influence the company’s investment narrative going forward.

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HealthEquity Investment Narrative Recap

To be a shareholder in HealthEquity, you need confidence in the growth of tax-advantaged healthcare savings and the company's ability to capture market share through digital innovation and regulatory tailwinds. The latest earnings report, featuring revenue and net income gains plus updated guidance, reinforces optimism around near-term performance, but does not materially shift the most important catalyst: ongoing regulatory expansion. The biggest current risk remains interest rate sensitivity, as earnings still rely heavily on custodial cash yields.

Of the company's recent announcements, the updated full-year guidance is most relevant, with management projecting revenues between US$1.290 billion and US$1.310 billion and net income of US$185 million to US$200 million. This outlook directly speaks to HealthEquity’s potential to sustain above-market profit growth, an important point for investors tracking catalysts tied to expanding HSA eligibility and new member sign-ups.

Yet, while near-term growth appears strong, investors should also be aware that if interest rates start to decline again...

Read the full narrative on HealthEquity (it's free!)

HealthEquity's narrative projects $1.6 billion in revenue and $320.2 million in earnings by 2028. This requires 8.0% yearly revenue growth and an increase in earnings of about $174 million from the current $145.8 million level.

Uncover how HealthEquity's forecasts yield a $122.21 fair value, a 31% upside to its current price.

Exploring Other Perspectives

Three community members valued HealthEquity stock between US$122.21 and US$164.48, reflecting diverse expectations for future growth. With interest income from custodial cash a persistent risk, it’s worth considering how outlooks can differ among individual investors.

Explore 3 other fair value estimates on HealthEquity - why the stock might be worth just $122.21!

Build Your Own HealthEquity Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your HealthEquity research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free HealthEquity research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate HealthEquity's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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