HealthEquity, Inc. (HQY) Stock Price & How to Invest

HealthEquity, Inc. is the largest independent non-bank custodian of health savings accounts in the United States, and it also administers the flexible spending accounts, health reimbursement arrangements, COBRA and commuter benefits that sit alongside them. As of April 30, 2026 it held 10.6 million HSAs containing $37.1 billion of member assets, plus 7.2 million other consumer-directed benefit accounts, for 17.8 million total accounts. Almost none of that comes from consumers directly: it reaches members through their employers, and employers through benefits brokers, health plans and retirement recordkeepers. Revenue arrives in three lines: service fees from employers and members, custodial revenue on the interest spread from member cash placed with insurance-company partners and banks, and interchange on every swipe of a member's benefits card. Custodial is the biggest and by far the most profitable, at $174.3 million of the $354.6 million booked in the quarter ended April 30, 2026, against only $11.7 million of direct cost.

The investment question is really about interest rates and where member money sits. Account growth is steady rather than exciting (HSAs up 8% year over year, total accounts up 4%, other benefit accounts flat), so earnings power comes from balances compounding and from old low-rate cash contracts rolling into better ones. HealthEquity disclosed that $16.5 billion of contracted HSA cash earned an average annualized 3.6% at the end of April 2026, with $3.2 billion of it still at 1.8% and due to reprice before the fiscal year ends. Members are also moving cash into markets: invested HSA balances reached $19.6 billion, up 38%, while HSA cash grew just 3%. Management raised fiscal 2027 guidance to roughly $1.41 billion to $1.42 billion of revenue and $625 million to $633 million of adjusted EBITDA. About $8.6 billion of market value against $1.34 billion of trailing revenue leaves little slack if the repricing tailwind fades or if service revenue, up only 3% last quarter, keeps decelerating.

Custodial revenue is the profit engine and it depends on rates HealthEquity does not control, so a sustained decline in market yields would eventually reset renewing contracts lower, just as slowly as the current tailwind arrived. Service revenue grew only 3% last quarter and average service fees per account are falling, which means growth in accounts is not translating cleanly into growth in fees. Competition for the employer default slot is intense, with Optum Bank, Fidelity and HSA Bank all able to undercut on price, and Fidelity in particular markets a no-fee individual HSA. A fiscal 2025 cybersecurity incident involving a business partner's compromised user account left the company facing a consolidated putative consumer class action in federal court in the District of Utah, where it filed a renewed motion to compel arbitration on May 15, 2026, plus several regulatory inquiries; separately, several plaintiff firms have publicized securities investigations following the March 2025 guidance reaction, though the latest 10-Q discloses no pending securities fraud case. Complementary benefit accounts (FSA, HRA, COBRA, commuter) were flat at 7.2 million, so the non-HSA half of the account base is not currently contributing growth.

15 analysts publish price targets on HQY, averaging $118.53 against a $102.79 price as of August 2026, or +15.3%. The published targets run from $105.00 to $135.00, a narrow spread, and the ratings split 15 buy, 0 hold, 0 sell. Over the last six months there have been 5 raises and 3 cuts among the published actions. A price target is what an analyst published on a date, not a prediction, and sell-side ratings skew positive across the whole market.

Read the full HQY forecast and price target for the target table, the recent rating actions by firm, and how the consensus has shifted.

We give no verdict on HealthEquity, Inc.. Both cases are real, which is why the question is contested at all, so here is the strongest version of each.

The case for buying. The cash repricing ladder. HealthEquity locks member cash into multi-year contracts with insurance companies and banks, so its yield moves in slow motion rather than with the Fed. The most optimistic published target, $135.00, assumes this works close to its best case.

The case against. Custodial revenue is the profit engine and it depends on rates HealthEquity does not control, so a sustained decline in market yields would eventually reset renewing contracts lower, just as slowly as the current tailwind arrived. The most pessimistic target, $105.00, is roughly what HQY is worth if this bites instead.

Read the full bull and bear case on HQY, including what would have to change to break either one. Walnut is not an investment adviser.

A simple financial snapshot. These are approximations and refresh quarterly; for current figures see HealthEquity, Inc.'s investor relations page or your broker.

• Revenue (TTM): ~$1.34B
• Latest quarter (Q1 FY2027, ended April 30, 2026): ~$354.6M revenue, +7% year over year
• Q1 FY2027 earnings: ~$69.4M net income, ~$0.82 diluted (~$1.24 non-GAAP)
• HSA assets under custody: ~$37.1B (~$17.5B cash, ~$19.6B invested)
• Fiscal 2027 guidance: ~$1.41B to ~$1.42B revenue, ~$625M to ~$633M adjusted EBITDA
• Market cap and multiples: ~$8.6B, ~6.4x TTM sales, ~39x trailing GAAP earnings

HealthEquity runs a January fiscal year, so the quarter ended April 30, 2026 is fiscal 2027's first, reported May 28, 2026. Net debt is modest at roughly $680 million ($600 million of 4.50% notes due 2029 plus a drawn revolver, against $265 million of cash), which puts enterprise value near $9.3 billion, or about 15x the midpoint of guided adjusted EBITDA. Because custodial revenue carries almost no direct cost, small changes in the yield on member cash swing earnings far more than equivalent changes in account count.

Other names that sit close to HQY: same theme, named as a direct competitor, or held beside it in the same funds. Each entry says which. Worth a look if you are thinking about diversification within a thesis rather than concentration on one ticker.

There are three common ways to get HQY exposure. Buy shares (or fractional shares) directly at any major broker. Hold an ETF that includes it, which spreads the position across many companies. Or build it into a focused thematic portfolio, so HQY sits alongside other stocks that express the same thesis.

Walnut takes the portfolio route. Describe a thesis where HQY fits (for example “AI infrastructure” or “dividend-growth large-caps”) and the AI proposes 5 to 6 constituents with target weights. You review the plan and fund it through your own broker when you're ready.

New to this? Start with how to invest in stocks, see how to analyze a stock with AI, or compare the best AI stock analyzers.

HQY is a fee-and-spread business on America's HSA balances, so its earnings track account growth and, much more powerfully, the yield it can renew on member cash.

Whether HQY is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, what would have to go right, and the risks in is HQY a buy or a sell?, and where the stock could go from here in the HQY stock forecast.

For income investors, whether HQY pays a dividend and how the payout looks is covered in does HQY pay a dividend? And to weigh HQY against a peer, read the full side-by-side comparisons: HQY vs UNH and HQY vs WBS.