HealthEquity (HQY) Stock Forecast & Price Target

HealthEquity Inc is positioned for significant growth, with management projecting its core total addressable market (TAM) for health savings accounts (HSAs) to expand from $3 billion to as much as $10 billion at maturity, alongside an additional $3 billion from other consumer-directed benefits (CDBs). The company reported a revenue of $300 million, surpassing consensus estimates, driven by robust performance across all segments, and adjusted EBITDA of $118 million, reflecting enhanced operational efficiency despite occasional excess service costs. Furthermore, management has raised its fiscal year outlook, forecasting revenue growth of 1.3% and EBITDA growth of 1.5%, indicating confidence in sustained demand and the effectiveness of their strategic initiatives.

HealthEquity, Inc. has presented a negative outlook, marked by an initial FY26 revenue and EBITDA guidance that fell approximately 2.5% and 2.2% below consensus estimates, highlighting potential challenges in meeting growth expectations. Key risks include declining interest rates, which could diminish income generated from HSA assets, as well as intense competition and potential shifts in consumer spending patterns influenced by regulatory changes or economic conditions. Additionally, the company's operational stability may be jeopardized by increased legal risks and evolving healthcare laws that could impose compliance costs, further impacting profitability.