Company Reports

On July 24, HCA finalized its second-quarter report, including 9% revenue growth, 5% adjusted EBITDA growth, and 11% adjusted EPS growth. It also maintained its preliminary 2026 guidance, which was lowered on July 14 due to higher-than-anticipated pressures from a rising uninsured population.

On July 14, HCA released preliminary second-quarter results that appeared to exceed FactSet consensus. But given the rising uninsured population resulting from expired individual subsidies, the company lowered its 2026 profit outlook on the potential for higher uncompensated care costs.

HCA Healthcare operates the largest hospital network in the US. It focuses on attractive geographic locations where it can lead and increase market share. Its facilities are concentrated in Texas and Florida, which represent over half of its bed count. In those states, the urban areas of focus include Dallas, Austin, Tampa, and Miami. We believe these geographic areas provide a good sense of the positive demographic factors that the firm aims to benefit from nationwide.

HCA reported first-quarter results that included 4% revenue growth, 2% adjusted EBITDA growth, and 11% adjusted EPS growth. Management also maintained its guidance for 2026. Shares fell about 8% on this news in early trading April 24.

HCA Healthcare operates the largest hospital network in the US, focusing on attractive geographic locations where it can lead and increase market share. With headquarters in Nashville, its facilities are concentrated in Texas and Florida, which represent over half of its bed count. In those states, the urban areas of focus include Dallas, Austin, Tampa, and Miami, and we believe these geographic areas provide a good sense of the positive demographic factors that the firm aims to benefit from nationwide.

HCA reported fourth-quarter results on Jan. 27 that included 7% revenue growth and adjusted EPS growth of 45%. The company also provided guidance for 2026 that included 1%-6% revenue growth and adjusted EPS growth of 3% to 11%. Shares soared about 8% on the news.

HCA Healthcare operates the largest hospital network in the US, focusing on attractive geographic locations where it can lead and increase market share. With headquarters in Nashville, its facilities are concentrated in Texas and Florida, which represent over half of its bed count. In those states, the urban areas of focus include Dallas, Austin, Tampa, and Miami, and we believe these geographic areas provide a good sense of the positive demographic factors that the firm aims to benefit from nationwide.

On Nov. 9, the US Senate agreed to terms that would reopen the US federal government after a record shutdown period. However, the solution did not include a plan to extend federal subsidies on the individual exchanges.

HCA revenue grew nearly 10% in the quarter, and including margin expansion and share repurchases, adjusted earnings per share grew 42%. Management raised its guidance for 2025 again, including adjusted EPS of $27.00 to $28.00, up from $25.50 to $27.00 previously and $24.05 to $25.85 initially.

HCA Healthcare operates the largest hospital network in the United States, focusing on attractive geographic locations where it can lead and increase market share. With headquarters in Nashville, its facilities are concentrated in Texas and Florida, which represent over half of its bed count. In those states, the urban areas of focus include Dallas, Austin, Tampa, and Miami, and we believe these geographic areas provide a good sense of the positive demographic factors that the firm aims to benefit from nationwide.

HCA Healthcare operates the largest network of hospitals in the United States, focusing on attractive geographic locations where it has the potential to lead and increase market share. With headquarters in Nashville, its facilities are concentrated in Texas and Florida, which represent over half of its bed count. In those states, the urban areas of focus include Dallas, Austin, Tampa, and Miami, and we believe these geographic areas provide a good sense of the positive demographic factors that the firm aims to benefit from nationwide.

HCA turned in 6% revenue growth in the quarter, and including margin expansion and share repurchases, adjusted EPS grew 24% year over year. On these results, management raised its guidance for 2025, including adjusted EPS of $25.50-$27.00, up from $24.05-$25.85 previously.

On May 11 and 12, Republicans revealed updated regulatory stances that included plans to lower drug prices and pull back on Medicaid spending by about $715 billion over the next 10 years versus $880 billion expected previously.

In the quarter, HCA Healthcare turned in 6% revenue growth and 20% adjusted EPS growth aided by EBITDA margin expansion and share repurchases. Management maintained its guidance for 2025, too, although uncertainty surrounds potential tariff effects.

Over the past week, tariff-related news has created significant volatility in the US market, including in medical services-related firms like managed care organizations, caregivers, and medical suppliers.

HCA Healthcare operates the largest network of hospitals in the United States, focusing on attractive geographic locations where it has the potential for leading and increasing market share. With headquarters in Nashville, its facilities are particularly concentrated in Texas and Florida, which represent over half of its bed count. In those states, urban areas of focus include Dallas, Austin, Tampa, and Miami, and we think those geographic areas provide a good sense of the positive demographic factors that the firm aims to benefit from across the country.

In the fourth quarter, HCA Healthcare turned in 6% revenue growth and 5% adjusted EPS growth while digesting the negative effects of recent hurricanes in the southeastern US. Shares declined 3% in early trading on this news.

Narrow-moat HCA Healthcare turned in weak third-quarter results, including negative effects from recent hurricanes in the Southeastern US, where many of its healthcare facilities are located. HCA maintained its full-year outlook but disappointed investors by highlighting that 2024 results may only be on the weak end of its guidance ranges, or mildly below our previous expectations. However, after accounting for recent cash flows, we are keeping our $316 fair value estimate intact and continue to see the shares as moderately overvalued even after the significant price decline in Oct. 25 trading.

Narrow-moat HCA Healthcare turned in better-than-anticipated second-quarter results on improving medical utilization trends, and the firm raised its guidance for 2024 above our previous expectations. After accounting for these strong trends and cash flows generated since our last valuation update, we are raising our fair value estimate by 11% to $316 per share from $285. We continue to view HCA shares as mildly overvalued, though, after investors have bid up this healthcare services bellwether in a rising medical utilization environment.

HCA Healthcare operates the largest network of hospitals in the United States, focusing on attractive geographic locations where it has the potential for leading and increasing market share. With headquarters in Nashville and locations in 20 states and England, its facilities are particularly concentrated in Texas and Florida, which represent over half of its bed count. In those states, urban areas of focus include Dallas, Austin, Tampa, and Miami; those geographic areas provide a good sense of the positive demographic factors that the firm aims to benefit from across the country.