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]

Core Viewpoint - HCA Healthcare has shown strong stock performance and financial results, indicating potential for long-term investment despite regulatory uncertainties [1][2][6]. Financial Performance - In the fourth quarter of 2025, HCA Healthcare reported a revenue increase of 6.7% to $19.5 billion, driven by growth in hospital admissions [3]. - Adjusted earnings per share rose by 28.8% to $8.01 during the same period [3]. Revenue Guidance - For fiscal 2026, HCA Healthcare expects revenue between $76.5 billion and $80 billion, suggesting a year-over-year growth of approximately 3.5% [4]. - The company faces regulatory challenges, particularly with the expiration of enhanced premium tax credits, which could impact demand and revenue [5]. Growth Opportunities - HCA Healthcare is positioned to benefit from increasing demand for medical care due to an aging population [6]. - The company is investing in initiatives, including artificial intelligence, to improve patient outcomes and grow market share [6]. Market Position - HCA Healthcare has established strong relationships with physicians, patients, and third-party payers, which may help it navigate regulatory volatility [7]. - Despite potential challenges, the company's position in the healthcare industry and growth opportunities suggest it could deliver above-average returns in the long run [7].

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].