Shares of HealthEquity, the nation's largest health savings account (HSA) custodian, plunged 9.38% in Tuesday's intraday trading session. The sell-off was primarily driven by the company's fiscal 2026 revenue outlook, which fell short of analyst expectations.
For the fiscal year ending January 31, 2026, HealthEquity forecasted revenue between $1.275 billion and $1.295 billion, trailing the average analyst estimate of $1.32 billion. The company cited an expected slowdown in growth for its HSA business as the primary reason for the lower-than-expected revenue guidance.
Despite the disappointing outlook for fiscal 2026, HealthEquity reported better-than-expected earnings and revenue for the fiscal third quarter of 2025 ended October 31, 2024. The company posted non-GAAP earnings of $0.78 per share, beating the consensus estimate of $0.72, and revenue rose 20.6% year-over-year to $300.4 million, slightly ahead of analyst expectations of $305.3 million.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.