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On Wednesday, Citizens JMP analysts increased the price target for HealthEquity, Inc (NASDAQ: HQY) to $117 from $110, while maintaining a Market Outperform rating. With the stock trading at $103.76, near its 52-week high of $115.59, InvestingPro analysis suggests the stock is currently trading slightly above its Fair Value. The decision follows the company’s first-quarter fiscal 2026 results, which were released on Tuesday after the market closed.
HealthEquity reported a revenue of $330.8 million, marking a 15% year-over-year increase. This figure surpassed the analysts’ estimate of $325 million and the consensus estimate of $322.3 million. The company’s non-GAAP earnings per share reached $0.97, exceeding the anticipated $0.85. According to InvestingPro data, the company maintains excellent financial health with a 3.06 current ratio and operates with moderate debt levels.
The adjusted EBITDA was reported at $140.2 million, reflecting a 19% year-over-year growth. This result was above the analysts’ projection of $126.4 million and the consensus estimate of $122.9 million.
The analyst from Citizens JMP reaffirmed the Market Outperform rating, highlighting the company’s strong financial performance in the recent quarter. The revised price target reflects the positive outlook on HealthEquity’s stock potential.
In other recent news, HealthEquity Inc. reported a strong start to its fiscal year 2026, with earnings and revenue exceeding analysts’ expectations. The company posted an earnings per share (EPS) of $0.97, surpassing the forecasted $0.82, while revenue reached $331.9 million, beating the projected $322.58 million. HealthEquity also reported a 15% year-over-year increase in revenue, driven by robust custodial revenue growth. The company’s gross profit margin improved to 68%, up from 65% the previous year. HealthEquity’s strategic initiatives included the launch of new products, such as an AI-powered claims adjudication system, which contributed to its competitive edge. Analyst firms have not recently upgraded or downgraded the company’s stock, but the positive earnings report reflects effective cost management and growth across its segments. HealthEquity provided revenue guidance between $1.285 billion and $1.305 billion for FY2026, with expectations for GAAP net income ranging from $173 million to $188 million.
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