Core Viewpoint - HCA Healthcare, Inc. is a leading U.S. healthcare provider with a market capitalization of $120.82 billion, focusing on high-quality patient care and innovative treatments [1] Stock Performance - HCA's stock has increased by 67.8% over the past 52 weeks and is up 15.7% year-to-date (YTD), although it is down 2.3% from its 52-week high of $552.90 reached on February 12 [2] - The stock has outperformed the broader S&P 500 Index, which gained 11.8% over the past 52 weeks but is down marginally YTD, and the State Street Health Care Select Sector SPDR ETF (XLV), which increased by 7.7% over the same period [3] Financial Results - HCA reported a 6.7% year-over-year (YOY) revenue increase to $19.51 billion for the fourth quarter, with an adjusted EPS of $8.01, up 28.8% YOY, exceeding Wall Street expectations [4] - For the current quarter, analysts expect HCA's EPS to rise by 11.2% YOY to $7.17, with projections of $30.20 for fiscal 2026 (up 7.1%) and $33.35 for fiscal 2027 (up 10.4%) [5] Analyst Ratings - Among 25 Wall Street analysts, the consensus rating for HCA's stock is a "Moderate Buy," consisting of 14 "Strong Buy" ratings, one "Moderate Buy," nine "Holds," and one "Strong Sell," indicating a slight decrease in bullish sentiment compared to three months ago [6]

Last year, HCA Healthcare (NYSE: HCA), a medical facilities operator, crushed broader equities. The company faced some uncertainty heading into the new year (more on that below), but so far, it has maintained the momentum we saw in 2025. HCA Healthcare's stock is up 7% so far in 2026, which is much better than the S&P 500's year-to-date performance. The good news is that there might be plenty of upside left for the healthcare company. Here is why it's worth investing in HCA Healthcare and holding its sha ...

Core Insights - Investors are showing a bullish stance on HCA Healthcare, with significant options trades indicating potential upcoming movements in the stock [1][2] - The overall sentiment among large traders is 66% bullish and 22% bearish, with notable put and call options activity [2] - The expected price movement for HCA Healthcare is projected between $350.0 and $560.0 based on recent options activity [3] Options Activity - A total of 9 uncommon options trades were detected for HCA Healthcare, with 5 puts totaling $218,970 and 4 calls totaling $215,600 [2] - The mean open interest for HCA Healthcare options trades is 113.43, with a total volume of 534.00 [4] - A snapshot of the last 30 days shows significant volume and open interest in call and put options within the strike price range of $350.0 to $560.0 [4] Company Overview - HCA Healthcare is a Nashville-based healthcare provider operating the largest collection of acute-care hospitals in the U.S., with 190 hospitals and over 2,500 outpatient facilities as of December 2025 [5] - The consensus target price from 5 market experts for HCA Healthcare stock is $536.0 [6] - Current trading volume stands at 715,366, with the stock price at $502.05, reflecting a 4.4% increase [7]

Financial Performance - Net income for HCA Healthcare, Inc. in 2025 was $6.784 billion, or $28.33 per diluted share, up from $5.760 billion, or $22.00 per diluted share in 2024, reflecting a significant increase in profitability [329]. - Total revenues increased to $75.600 billion in 2025, a rise of 7.1% from $70.603 billion in 2024, driven by a 2.9% increase in equivalent admissions and a 4.0% increase in revenue per equivalent admission [330]. - Revenues increased by 7.1% to $75.600 billion for 2025 from $70.603 billion for 2024, driven by a 2.9% increase in equivalent admissions and a 4.0% increase in revenue per equivalent admission [387]. - Net income attributable to HCA Healthcare, Inc. was $6.784 billion in 2025, representing a 17.8% increase from $5.760 billion in 2024 [385]. Operational Metrics - Consolidated admissions rose by 2.7% in 2025, with inpatient surgical volumes increasing by 0.9%, while outpatient surgical volumes slightly declined by 0.2% [331]. - Consolidated admissions increased by 2.7% in 2025, with same facility admissions rising by 2.3% compared to 2024 [386]. - Same facility revenues increased by 6.6% for 2025 compared to 2024, attributed to a 2.4% increase in equivalent admissions and a 4.1% increase in revenue per equivalent admission [364]. - Emergency room visits increased by 1.6% on a consolidated basis in 2025, with a 1.8% increase on a same facility basis [386]. - The average length of stay for patients was 4.8 days in 2025, consistent with 2024 [382]. - The occupancy rate for hospital beds was 73% in 2025, unchanged from 2024 [382]. Cash Flow and Expenses - Cash flows from operating activities increased by $2.122 billion, reaching $12.636 billion in 2025, primarily due to a $1.319 billion increase in net income and positive changes in working capital [333]. - Cash provided by operating activities totaled $12.636 billion in 2025, a $2.122 billion increase from 2024, attributed to a $1.319 billion increase in net income [398]. - Cash used in investing activities was $4.988 billion in 2025, with planned capital expenditures expected to be between $5.0 billion and $5.5 billion in 2026 [399]. - Cash used in financing activities totaled $8.550 billion in 2025, including $10.067 billion for repurchases of common stock [402]. - Depreciation expense increased to $3.508 billion in 2025 from $3.294 billion in 2024, representing 4.6% of revenues [391]. - Other operating expenses remained stable at 21.0% of revenues for both 2025 and 2024, with inflation expected to continue impacting these expenses in 2026 [390]. Debt and Interest - Interest expense increased to $2.248 billion in 2025, up from $2.061 billion in 2024, primarily due to a higher average debt balance [332]. - The total long-term debt of HCA Healthcare, Inc. was estimated at $45.911 billion as of December 31, 2025, with $2.507 billion subject to variable interest rates and $43.985 billion at fixed rates [420][421]. - The average effective interest rate for long-term debt was 5.0% for both 2025 and 2024 [420]. - A hypothetical 1% increase in interest rates could lead to a potential annualized reduction in future pretax earnings of approximately $25 million [421]. - HCA Healthcare, Inc. targets a majority of its debt portfolio to be maintained at fixed rates to mitigate interest rate fluctuations [421]. Uncompensated Care and Challenges - The estimated cost of total uncompensated care rose by $239 million in 2025, with uninsured admissions increasing by 1.9% [332]. - Total uncompensated care costs were estimated at $47.966 billion for 2025, up from $43.231 billion in 2024, with an estimated cost of total uncompensated care at $4.605 billion for 2025 [350]. - Management expects continued challenges related to the collection of patient due accounts, influenced by economic conditions and changes in healthcare coverage [350]. Strategic Initiatives - HCA Healthcare plans to expand its presence in existing markets by developing comprehensive service lines and outpatient facilities, aiming for long-term growth [334]. - The company is investing in digital and artificial intelligence capabilities to enhance clinical quality and operational efficiency, focusing on secure, enterprise-grade solutions [341]. - HCA Healthcare aims to achieve industry-leading performance in clinical, operational, and satisfaction measures through various initiatives, including infection reduction and advanced health information technology [336]. - The company continues to pursue a disciplined development strategy, focusing on selectively developing and acquiring new hospitals and outpatient facilities to capitalize on growth opportunities [339]. Tax and Regulatory Matters - The effective income tax rate decreased to 23.2% in 2025 from 24.5% in 2024, influenced by adjustments related to an internal restructuring of certain affiliates [394]. - The IRS concluded its examination of the Company's 2022 and 2023 income tax returns, resolving all federal income tax matters for those years without material impact on results [423]. - HCA Healthcare, Inc. is currently under examination by the IRS for the 2019 income tax returns of certain affiliates [423]. Market Risks - The company does not consider market risk related to foreign currency translation to be material to its consolidated financial statements or liquidity [422]. - The company is exposed to market risk related to market illiquidity, which could impair investments in debt and equity securities [419]. - The company may face credit-related impairments on investment securities in future periods if issuers default on interest payments [419].

Core Insights - HCA Healthcare is leveraging AI to enhance its operations and improve patient outcomes, particularly in nurse staffing and fetal heart rate monitoring [3][6][8] Group 1: AI Initiatives - HCA Healthcare has implemented an AI-driven nurse staffing tool to address nurse shortages and burnout, optimizing scheduling and improving patient safety [3][4] - The company is collaborating with GE Healthcare to develop an AI-powered fetal heart rate monitor, allowing doctors to monitor more patients effectively [6] Group 2: Company Performance - HCA Healthcare is one of the largest hospital chains in the U.S., with a strong track record of success attributed to investments in technology [7] - The company is well-positioned for long-term performance, supported by a diversified network, strong relationships with stakeholders, and increasing healthcare spending due to an aging population [8]

Core Viewpoint - HCA Healthcare Inc. is identified as one of the most undervalued large-cap stocks, with recent price target increases from RBC Capital and TD Cowen following strong Q4 2025 results and positive 2026 guidance [1][3] Group 1: Financial Performance - RBC Capital raised its price target for HCA Healthcare to $555 from $525, maintaining an Outperform rating, citing strong Q4 2025 results and robust 2026 guidance [1] - TD Cowen increased its price target from $490 to $529 with a Buy rating after HCA's Q4 2025 EBITDA exceeded consensus expectations, attributing this to effective expense controls [3] Group 2: Strategic Initiatives - HCA Healthcare is expected to achieve $400 million in savings from strategic resiliency initiatives, which will help offset challenges such as the expiration of enhanced premium tax credits and reduced contributions from state programs [1][2] - The company is leveraging its scale and data-driven efficiencies to drive growth despite a changing regulatory and payer landscape [2] Group 3: Company Overview - HCA Healthcare operates hospitals and related healthcare entities in the US, providing general and acute care services [4]

Core Viewpoint - RBC Capital has raised the price target for HCA Healthcare to $555 from $525 while maintaining an Outperform rating on the shares, indicating positive sentiment towards the company's performance and future outlook [1]. Financial Performance - HCA Healthcare's Q4 results were strong, leading to a favorable reaction in the stock price [1]. - The 2026 full-year outlook is better than expected, reflecting improved core performance [1]. Cost Savings - The company is expected to achieve $400 million in savings from resiliency efforts, which will more than offset the expiration of the ePTC and the lower contribution from state supplemental programs [1].

Group 1 - The expiration of ACA subsidies is expected to significantly impact hospitals and providers, leading to increased premiums and loss of insurance for millions [3][4] - More than 24 million people enrolled in ACA plans last year, but the lapse of subsidies could result in providers losing over $32 billion in revenue this year [4] - HCA Healthcare, a major for-profit hospital operator, anticipates losses exceeding $1 billion due to the subsidy expiration and declines in Medicaid state supplemental payments [8] Group 2 - HCA could face losses between $600 million to $900 million from the subsidy lapse and an additional $250 million to $450 million from Medicaid payment declines [8] - The company is implementing a multi-year resilience plan to mitigate impacts and expects to offset about $400 million in losses this year [8] - HCA's guidance for full-year 2026 earnings is expected to be close to or exceed 2025 figures, which analysts consider conservative [8]

Core Insights - HCA Healthcare Inc. reported mixed financial results for Q4 2025, with total revenues of $19.513 billion, a 6.7% year-over-year increase, but below the consensus estimate of $19.67 billion [1] - The company achieved adjusted earnings of $8.01, up from $6.22 a year ago, exceeding the consensus of $7.43 [2] - HCA forecasts fiscal 2026 earnings per share between $29.10 and $31.50, slightly below the consensus of $29.54, and expects sales of $76.5 billion to $80 billion, also below the consensus of $79.08 billion [2] Financial Performance - HCA's adjusted EBITDA for 2026 is projected to be between $15.55 billion and $16.45 billion, which is significantly above investor Bear Case expectations for flat year-over-year growth [4] - The company’s balance sheet is described as "best-in-class," indicating strong financial stability and management confidence [5] Analyst Perspectives - Cantor Fitzgerald's analyst Sarah James maintains an Overweight rating on HCA, raising the price target from $525 to $588, citing promising core growth and a favorable provider setup [3] - BofA Securities expresses caution regarding hospitals, highlighting moderating fundamentals and a restrictive policy and reimbursement environment [6] Strategic Initiatives - HCA is undertaking a $10 billion share buyback, which is seen as a positive indicator for long-term valuation creation [5] - The company has identified a better pipeline for outpatient acquisitions, suggesting growth opportunities in that segment [5]

Core Viewpoint - HCA Healthcare Inc. reported mixed financial results for the fourth quarter of 2025, with revenues slightly below expectations but adjusted earnings exceeding forecasts [1][2]. Financial Performance - Total revenues for HCA in Q4 2025 were $19.513 billion, a 6.7% increase year-over-year, but below the consensus estimate of $19.67 billion [1]. - Adjusted earnings per share were $8.01, up from $6.22 a year ago, surpassing the consensus estimate of $7.43 [1]. Future Outlook - HCA Healthcare forecasts fiscal 2026 earnings per share in the range of $29.10 to $31.50, compared to the consensus of $29.54 [2]. - The company anticipates 2026 sales between $76.5 billion and $80 billion, while the consensus estimate stands at $79.08 billion [2]. Stock Performance - HCA Healthcare shares closed at $505.84 following the earnings announcement [3]. - Analysts have adjusted their price targets for HCA Healthcare in response to the earnings results [3].