Healthequity (HQY) AI Stock Analysis

Company Guidance

HealthEquity raised its fiscal 2027 outlook, now expecting revenue of $1.411–1.421 billion, GAAP net income of $242–248 million (or $2.88–$2.96 per share), non‑GAAP net income of $392–398 million (or $4.66–$4.73 per share on an estimated 84 million shares), and adjusted EBITDA of $628–636 million; management assumes a GAAP and non‑GAAP tax rate of ~25%. They expect average HSA cash yield of 3.85–3.90% in FY27 and noted $2.3 billion of HSA cash repricing remaining in FY27, $460 million of forward Treasury contracts matured in Q2, $3.0 billion of outstanding forward contracts effectively locking a ~3.9% five‑year Treasury rate (net of costs) across FY27–29, and small forward hedges placed post‑quarter for enhanced‑rate repricings over the next 12–18 months. The company closed the quarter with $256 million of cash, generated $136 million of operating cash flow, had ~$931 million of debt outstanding (net of issuance costs), repurchased about $108 million of shares in Q2 at an average price below $90 and has roughly $948 million remaining under its $1.6 billion repurchase authorization; the guidance reflects continued funding of growth initiatives, planned share repurchases, potential revolver paydowns, and preserved capacity for opportunistic M&A.