Shares of HealthEquity (HQY) plummeted 13.73% in after-hours trading on Tuesday following the release of the company's 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 $311.8 million, surpassing the $306.1 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 of $1.30 billion. The company's Adjusted EBITDA outlook of $525 million to $545 million for FY2026 further contributed to the negative sentiment.

Despite reporting growth in health savings accounts and total assets under management, the weaker-than-anticipated earnings and outlook appear to have spooked investors, leading to the significant after-hours sell-off. The market's reaction suggests concerns about HealthEquity's ability to maintain its growth trajectory and profitability in the face of potential headwinds in the healthcare and benefits administration industry.