HCA Healthcare (NYSE:HCA) Posts Earnings Results, Beats Estimates By $0.03 EPS

Key Points

• HCA Healthcare beat quarterly expectations, reporting EPS of $7.59 versus the $7.56 consensus and revenue of $20.23 billion, which also topped estimates. Revenue rose 8.7% year over year from the same quarter last year.
• Management flagged pressure from insurance mix changes after enhanced premium tax credits expired, saying exchange admissions fell 15% and many of those patients shifted to uninsured status. This contributed to higher uncompensated care and EBITDA pressure.
• HCA still saw solid underlying demand and investment activity, with ER visits up 3.6% and more insured volumes outside exchanges, while the company outlined more than $7 billion in capital spending and updated full-year adjusted EBITDA guidance to $15.4 billion-$16.1 billion.

HCA Healthcare (NYSE:HCA - Get Free Report) posted its quarterly earnings data on Friday. The company reported $7.59 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $7.56 by $0.03, Briefing.com reports. The business had revenue of $20.23 billion during the quarter, compared to the consensus estimate of $19.76 billion. HCA Healthcare had a net margin of 8.89% and a negative return on equity of 295.93%. The firm's quarterly revenue was up 8.7% compared to the same quarter last year. During the same quarter last year, the company posted $6.84 earnings per share.

Here are the key takeaways from HCA Healthcare's conference call:

• HCA said the expiration of enhanced premium tax credits drove a bigger-than-expected payer mix shift, with exchange admissions down 15% and most of those patients moving almost one-for-one to uninsured.
• The company reported 11% diluted EPS growth in both the quarter and year to date, even as adjusted EBITDA was pressured by coverage losses and higher uncompensated care.
• Underlying demand remained solid, with ER visits up 3.6% and insured volumes excluding exchanges increasing, while HCA expects long-term demand growth of 2%-3% supported by population trends.
• Management highlighted over $7 billion of capital expenditures and continued network expansion, including new beds and outpatient facilities, as part of a strategy to grow capacity and market share.
• HCA updated full-year guidance to Adjusted EBITDA of $15.4 billion-$16.1 billion and said its resiliency program, cost discipline, and Medicaid supplemental payments should help offset some of the exchange headwind in the back half of 2026.

HCA Healthcare Trading Up 2.0%

NYSE HCA traded up $7.61 during trading on Friday, hitting $384.11. The company had a trading volume of 873,230 shares, compared to its average volume of 1,326,738. HCA Healthcare has a one year low of $330.00 and a one year high of $556.52. The company has a market cap of $85.21 billion, a price-to-earnings ratio of 13.29, a price-to-earnings-growth ratio of 1.25 and a beta of 1.12. The company's fifty day moving average is $387.76 and its 200-day moving average is $454.23.

Wall Street Analysts Forecast Growth

HCA has been the topic of a number of recent research reports. Jefferies Financial Group set a $450.00 price target on HCA Healthcare in a research report on Tuesday, July 14th. Argus dropped their price target on shares of HCA Healthcare from $560.00 to $500.00 and set a "buy" rating on the stock in a research note on Monday, May 4th. Robert W. Baird dropped their target price on HCA Healthcare from $450.00 to $442.00 and set a "neutral" rating on the stock in a research report on Wednesday, April 15th. Wells Fargo & Company set a $369.00 price objective on HCA Healthcare in a report on Monday. Finally, Truist Financial set a $413.00 target price on shares of HCA Healthcare in a report on Thursday, June 4th. Fourteen investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, HCA Healthcare has a consensus rating of "Moderate Buy" and an average price target of $483.45.

Institutional Trading of HCA Healthcare

Several institutional investors have recently added to or reduced their stakes in the business. Brighton Jones LLC purchased a new stake in shares of HCA Healthcare during the 4th quarter valued at about $1,021,000. NewEdge Advisors LLC lifted its position in shares of HCA Healthcare by 11.9% during the 1st quarter. NewEdge Advisors LLC now owns 3,859 shares of the company's stock valued at $1,334,000 after buying an additional 409 shares in the last quarter. Sivia Capital Partners LLC increased its stake in shares of HCA Healthcare by 5.5% in the second quarter. Sivia Capital Partners LLC now owns 630 shares of the company's stock worth $241,000 after purchasing an additional 33 shares in the last quarter. Jump Financial LLC purchased a new stake in shares of HCA Healthcare during the second quarter worth about $2,073,000. Finally, Sei Investments Co. raised its position in shares of HCA Healthcare by 56.3% during the second quarter. Sei Investments Co. now owns 136,589 shares of the company's stock valued at $52,328,000 after buying an additional 49,214 shares during the last quarter. 62.73% of the stock is currently owned by hedge funds and other institutional investors.

About HCA Healthcare

HCA Healthcare is a for‑profit operator of healthcare facilities headquartered in Nashville, Tennessee. Founded in 1968, the company owns and operates a network of hospitals and related healthcare facilities and has grown through organic expansion and acquisitions to become a large provider of inpatient and outpatient services.

The company's core activities include the operation of acute care hospitals, freestanding surgical and emergency centers, and outpatient clinics. HCA's services encompass inpatient care, surgical services, emergency medicine, diagnostic imaging and laboratory testing, and various outpatient and ambulatory care offerings.

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