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.