| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 37 | 34.6x | 17.8x | Bottom tier | |
Growth | 78 | 7.3% | 7.1% | Top tier | |
Quality | 86 | 9.1% | 4.5% | Top tier | |
Safety | 78 | 1.4x | 2.6x | Top tier | |
Capital Return | 79 | — | 2.12% | Top tier | |
Momentum | 73 | 16.9% | 2.9% | Top tier | |
Sentiment | 74 | 11 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
HealthEquity operates a healthcare financial platform that connects health savings accounts HSA, assets, payments, investing, advisory services, and Marketplace in an integrated experience. The company generates revenue from three main streams: service fees associated with accounts and platform usage, custodial revenue generated from HSA cash balances, and interchange fees associated with member spending and cards. In Q2 fiscal 2027, service revenue was $124.4 million, custodial revenue was $175.9 million, and interchange revenue was $50.4 million, showing that custodial revenue was the largest component of the quarter's $350.7 million in revenue.
In Q2 fiscal 2027, revenue grew 8% year over year to $350.7 million, and gross profit reached a record $258.0 million, equivalent to a gross margin of approximately 74% versus 71% in the comparable period. GAAP net income was $65.6 million, or $0.78 per diluted share, while non-GAAP net income was $103.8 million, or $1.24 per diluted share. Adjusted earnings before interest, taxes, depreciation, and amortization also increased 11% to $167 million, and its margin reached a record 48% versus 46% in Q2 fiscal 2026.
During the first half of fiscal 2027, HealthEquity generated revenue of $705.4 million, up 7%, net income of $135.1 million, and adjusted earnings before interest, taxes, depreciation, and amortization of $331.5 million, up 14% with a 47% margin. These results are supported by a base of 10.7 million HSA accounts, while total HSA accounts grew 8% and total HSA assets grew 14% in Q2 fiscal 2027. According to EDGAR data for the twelve-month period ending in fiscal 2027, revenue was $1.4 billion, gross profit was $970.5 million, net income was $236.5 million, and earnings per share were approximately $2.81.
Automated analysis for informational purposes only — not investment advice.
Analyst consensus rates HQY shares as “Buy,” with an average price target of $110 and a narrow target range between $105 and $115. The average target is slightly above the top of the 52-week range of $107.62, while the stock's annual range extends from $72.76 to $107.62; no price-to-earnings multiple is provided in the data for assessing valuation using this measure. The raised fiscal 2027 outlook supports the positive view, but risks related to custodial revenue's interest-rate sensitivity, service pricing erosion, and the debt burden remain important factors when assessing the sustainability of the targets.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
HealthEquity's revenue grew 8% year over year to $350.7 million in Q2 fiscal 2027. Custodial revenue was $175.9 million, service revenue was $124.4 million, and interchange revenue was $50.4 million. Gross margin also increased to approximately 74%, and adjusted earnings before interest, taxes, depreciation, and amortization margin reached a record 48%.
On August 27, 2026, the company raised its fiscal 2027 revenue outlook to a range between $1.411 billion and $1.421 billion. It expects GAAP net income between $242 million and $248 million, or between $2.88 and $2.96 per share. It also expects adjusted earnings before interest, taxes, depreciation, and amortization between $628 million and $636 million, and non-GAAP net income between $392 million and $398 million.
In Q2 fiscal 2027, HealthEquity used artificial intelligence in member service, client onboarding, multilingual materials, claims automation, and fraud prevention. Automated tools handled 85% of routine chat inquiries and contained 55% of card-related contacts. Employee-handled calls declined 25% year over year, while card calls fell 30%, contributing to an adjusted earnings before interest, taxes, depreciation, and amortization margin of 48%.
The number of active Marketplace members exceeded 14 thousand by the end of Q2 fiscal 2027, but its revenue remained immaterial to the company's results. In the campaign referenced during the August 27, 2026 call, Health Savings Days attracted approximately 500 thousand unique visitors and recorded the highest weekly traffic and sales in Marketplace's history. The company plans to integrate HSA, FSA, reimbursements, investing, education, and Marketplace into the next-generation HealthEquity app, building on 1.4 million monthly active users in July 2026 and more than 5 million cumulative downloads.
The number of HSA accounts reached a record 10.7 million in Q2 fiscal 2027, with total accounts growing 8% and assets growing 14% year over year. New accounts generated from sales increased 24%, marking the best second quarter and the strongest quarter outside the fourth-quarter open enrollment period. Invested assets within HSA also grew 28%, and the company launched SimplyInvest with no administrative fees, while only approximately 9% of the HSA base was investing by the end of the quarter.
Custodial revenue was $175.9 million in Q2 fiscal 2027, so the company's results remain sensitive to yields on cash balances and the repricing of HSA contracts, including $2.3 billion of contracts scheduled to be repriced during fiscal 2027. Management also acknowledged service pricing erosion and intense competition on August 27, 2026, which may limit the company's ability to retain all artificial intelligence savings. In addition, debt was approximately $931 million compared with $256 million in cash at the end of the quarter, while Marketplace remains financially immaterial despite growing engagement.
