HealthEquity (NASDAQ: HQY) shares plummeted 13.73% in after-hours trading on Tuesday following the release of its fourth-quarter earnings report and fiscal year 2026 guidance, both of which fell short of analysts' expectations.

The health savings account (HSA) administrator reported adjusted earnings per share of $0.69 for the fourth quarter, missing the analyst consensus estimate of $0.72. While this represents a 9.52% increase from the same period last year, it wasn't enough to satisfy investor expectations. Revenue for the quarter came in at $311.817 million, surpassing the $306.053 million estimate, but the bottom-line miss overshadowed this achievement.

Adding to investor concerns, HealthEquity's outlook for fiscal year 2026 disappointed Wall Street. The company expects adjusted earnings per share between $3.57 and $3.74, with the midpoint falling below the $3.71 analysts had projected. Similarly, the revenue guidance of $1.28 billion to $1.31 billion also came in slightly below market expectations.

Despite reporting growth in key metrics such as HSA accounts (up 14% year-over-year to 9.9 million) and total HSA assets (up 27% to $32.1 billion), the weaker-than-anticipated earnings and guidance appear to have spooked investors.

HealthEquity CEO Scott Cutler attempted to highlight the positives, stating, "Team Purple finished fiscal '25 in strong fashion, with record revenues and major strides in advancing our strategic initiatives." However, the market's reaction suggests that investors were looking for more robust growth and profitability from the company.

The significant stock drop reflects growing concerns about HealthEquity's ability to maintain its growth trajectory while improving profitability in an increasingly competitive healthcare savings and benefits administration market.