HCA Healthcare (NYSE:HCA) Releases Earnings Results, Beats Estimates By $0.57 EPS

HCA Healthcare (NYSE:HCA) posted its earnings results on Tuesday. The company reported $7.22 EPS for the quarter, topping the consensus estimate of $6.65 by $0.57, FiscalAI reports. The company had revenue of $19.85 billion for the quarter, compared to the consensus estimate of $19.33 billion. During the same quarter last year, the business earned $6.96 EPS. HCA Healthcare’s quarterly revenue was up 3.6% compared to the same quarter last year.

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

• Positive Sentiment: HCA reported solid third-quarter performance, with same-facility adjusted admissions up 3%, its 22nd consecutive quarter of volume growth, and adjusted EPS rising nearly 4%. Management expects to finish 2026 in the upper half of its guidance ranges.
• Negative Sentiment: Exchange-related payer pressures remain significant: exchange equivalent admissions fell 19% year over year, while uninsured volume rose to 10.5% of equivalent admissions from 8.5%. Management estimated the exchange-to-uninsured shift reduced third-quarter adjusted EBITDA by approximately $400 million.
• Negative Sentiment: Management’s preliminary 2027 outlook calls for earnings to be generally consistent with 2026, despite expected 2%-3% volume growth, because Medicaid supplemental-payment benefits are expected to decline by roughly $550 million-$650 million and payer-mix pressure will persist.
• Positive Sentiment: Cost control and capital allocation were notable strengths: cost per equivalent admission excluding supplemental payments was essentially flat year over year, cash flow from operations was about $4.5 billion, and HCA repurchased approximately $3 billion of shares. Management expects further benefits from its enterprise-wide resiliency, digital transformation, and shared-services initiatives.

HCA Healthcare Stock Down 3.0%

Shares of HCA opened at $451.38 on Wednesday. The stock’s fifty day simple moving average is $433.68 and its 200-day simple moving average is $444.96. HCA Healthcare has a 12-month low of $353.99 and a 12-month high of $556.52.

HCA Healthcare Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, December 29th. Stockholders of record on Tuesday, December 15th will be paid a dividend of $0.78 per share. This represents a $3.12 annualized dividend and a dividend yield of 0.7%. The ex-dividend date of this dividend is Tuesday, December 15th.

Analyst Upgrades and Downgrades

Several research analysts have recently commented on HCA shares. Royal Bank Of Canada boosted their target price on HCA Healthcare from $435.00 to $496.00 and gave the stock an “outperform” rating in a report on Wednesday, October 7th. The Goldman Sachs Group cut their price objective on HCA Healthcare from $558.00 to $485.00 and set a “buy” rating for the company in a research report on Tuesday, July 28th. UBS Group reduced their price objective on HCA Healthcare from $635.00 to $579.00 and set a “buy” rating on the stock in a research note on Monday, July 27th. Raymond James Financial set a $528.00 target price on HCA Healthcare in a research note on Tuesday, July 7th. Finally, Leerink Partners reaffirmed an “outperform” rating and issued a $492.00 price target on shares of HCA Healthcare in a report on Friday, September 18th. Sixteen equities research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $467.50.

Key Headlines Impacting HCA Healthcare

Here are the key news stories impacting HCA Healthcare this week:

• Positive Sentiment: HCA reported third-quarter adjusted earnings of $7.22 per share and revenue of $19.85 billion, exceeding analyst estimates of $6.65 and $19.33 billion, respectively. Revenue increased 3.6% year over year, supported by higher admissions and emergency-room visits. HCA Healthcare beats quarterly profit estimates on demand for medical services
• Positive Sentiment: The company declared a quarterly dividend of $0.78 per share, or $3.12 annually, providing a modest shareholder-return benefit with a stated yield of approximately 0.7%.
• Neutral Sentiment: HCA maintained its existing guidance despite the mixed quarter. Analysts noted that strong admissions and revenue were partially offset by rising costs and lower surgical volumes, including a reported 5.4% decline in ambulatory surgery center volume. HCA Healthcare posts solid Q3 results, maintains guidance
• Negative Sentiment: Management signaled that 2027 earnings could be broadly flat, citing reduced Medicaid payments and reimbursement pressure. That outlook raised concerns about limited profit growth after the current year.
• Negative Sentiment: HCA expects a roughly $400 million impact from the increase in uninsured patients, adding to uncompensated-care expenses and weighing on margins. HCA takes $400M hit from rise in uninsured patients
• Negative Sentiment: The earnings call appears to have amplified investor concerns about reimbursement, payer mix, costs and future growth, overwhelming the quarter’s headline beat. A law firm also announced an investigation on behalf of HCA investors, adding a potential litigation overhang, although no claim has been established. HCA Healthcare shares slide following third-quarter earnings call

About HCA Healthcare

HCA Healthcare, Inc is a healthcare services company that operates hospitals, ambulatory surgery centers, emergency care facilities, physician practices and other healthcare sites. Its facilities provide a broad range of services, including acute and emergency care, surgery, cardiology, oncology, women’s and children’s services, behavioral health and outpatient care.

The company serves patients primarily across the United States through a network of healthcare facilities in numerous states.