Is HealthEquity stock worth following? Financial data and risks are all here.

The recent performance of the healthcare technology company HealthEquity (HQY) has attracted considerable attention from investors. Over the past six months, the stock price has risen by 9.5%, outperforming the industry average, and the market capitalization has reached $8.85 billion. However, this is just the surface scenery—the deeper logic is worth digging into.

Where is the growth engine

AI + Cloud Migration, Efficiency Improvement is Visible

HQY is rebuilding its core competitiveness with AI. Their AI claims system has been launched, processing speed has increased, operating costs have decreased, and user satisfaction has risen accordingly. The company is also piloting Agentic AI for voice interactions, aiming to automate customer service processes and reduce wait times. At the same time, the main platform V5 has been fully migrated to the cloud, resulting in significant improvements in system response speed and stability. The accompanying mobile app has strengthened security authentication and digital wallet functions; these details may seem small but can enhance user engagement.

HSA account growth is stable

The main source of income for HQY is the custodial services for Health Savings Accounts (HSA). As of the end of July, the total number of HSA accounts they manage reached 10 million, a year-on-year increase of 6%. Among them, the number of HSA accounts with investment functions is 782,000, a year-on-year increase of 10%. More critically, the scale of HSA assets is $33.1 billion, a year-on-year increase of 12%—of which $17 billion is cash and $16.1 billion is in investments. This indicates that users are not only saving money in HSA but also using it for asset allocation.

Earnings reports exceeding expectations have become the norm

Q2 Fiscal Year 2026 Quarterly Report Highlights: Revenue and profit both exceeded expectations, HSA asset growth momentum is good, and both gross margin and operating margin are improving. Analysts are also raising their expectations for the company's future performance—over the past 60 days, the earnings per share expectation has been raised from $3.84 to $3.86. The revenue expectation for Q3 is $319.9 million (a year-on-year increase of 6.5%), with earnings per share of 90 cents (a year-on-year increase of 15.4%).

But be careful of this pit

Data security is a constant worry

HQY holds a large amount of users' personal and financial data, which is the most core asset and also the biggest risk. In Q2, the company paid out $1.2 million for fraud losses. Although this figure has been decreasing quarter by quarter, any significant data breach could trigger a chain reaction—user information theft, funds loss, litigation disputes, and damage to brand reputation. Once such events occur, the recovery costs can be extremely high.

How to view this stock

The fundamental logic of HQY is clear: the HSA market is expanding, user demand for digital health management is increasing, and the company is using AI and cloud technology to reduce costs and improve experiences. The financial report data is indeed heading in a positive direction. The question is the balance between valuation and risk. If you are optimistic about the healthcare technology sector, HQY's technology upgrades and account growth are indeed attractive; however, it is also important to recognize that safety risks are a long-term challenge that requires continuous monitoring.

Other choices in the same track

There are other good companies in the medical technology sector:

• Medpace (MEDP): Zacks #1 Strong Buy, Q3 earnings per share of $3.86 exceeded expectations by 10%, with a projected growth rate of 17.1% in 2025.
• Intuitive Surgical (ISRG): Zacks #2, Q3 adjusted EPS $2.40 exceeded expectations by 20%, long-term growth rate expectation 15.7%
• Boston Scientific (BSX): Zacks#2, Q3 adjusted EPS of 75 cents exceeded expectations by 5.6%, long-term growth rate forecast of 16.4%.

The common characteristic of these three companies is that their financial reports are consistently exceeding expectations, and their growth rate is significantly faster than the industry average.