Healthequity Inc (NASDAQ:HQY) stock rose 1.85% (As on March 18, 11:18:44 AM UTC-4, Source: Google Finance) after the company reported fourth quarter results that exceeded analyst expectations. The health savings account administrator posted net income of $49.7 million, or $0.58 per diluted share, compared to $26.4 million, or $0.30 per diluted share, in the prior-year quarter. Adjusted EBITDA climbed 23% to $132.9 million, with the margin expanding to 40% from 35% YoY. HSAs as of January 31, 2026 were 10.6 million, an increase of 7% year over year, including 832,000 HSAs with investments, an increase of 10% year over year. Total Accounts as of January 31, 2026 were 17.8 million, including 7.2 million complementary CDBs.Total HSA Assets as of January 31, 2026 were $36.5 billion, an increase of 14% year over year. Total HSA Assets included $18.0 billion of HSA cash and $18.5 billion of HSA investments. Client-held funds, which are deposits held on behalf of the Clients to facilitate administration of the CDBs, and from which the company generate custodial revenue, were $1.1 billion as of January 31, 2026. As of January 31, 2026, HealthEquity had $318.9 million of cash and cash equivalents and $957.4 million of outstanding debt, net of issuance costs. This compares to $295.9 million in cash and cash equivalents and $1.06 billion of outstanding debt as of January 31, 2025.

HQY in the first quarter of FY 26 has reported the adjusted earnings per share of $0.95, beating the analysts’ estimates for the adjusted earnings per share of $0.90. The company had reported the adjusted revenue growth of 7 percent to $334.6 million in the first quarter of FY 26, beating the analysts’ estimates for revenue of $331.93 million. Revenue this quarter included: service revenue of $127.1 million, custodial revenue of $161.4 million, and interchange revenue of $46.1 million.

Additionally, the Company repurchased 3.3 million shares of its common stock for $301.7 million during the fiscal year ended January 31, 2026, including 0.9 million shares for $81.7 million during the fourth quarter ended January 31, 2026. As of January 31, 2026, $177.7 million of common stock remained authorized for repurchase under the Company’s stock repurchase program

For fiscal 2027, the company issued guidance projecting revenue between $1.405 billion and $1.415 billion, with the midpoint of $1.41 billion slightly above typical analyst expectations. Adjusted EPS guidance of $4.56 to $4.65 represents a midpoint of $4.61. Adjusted EBITDA is expected to range from $618 million to $628 million.