HCA Healthcare (NYSE:HCA) Q3 2025 Earnings Call October 24, 2025 10:00 AM ET Speaker0Hello, and welcome to the HCA Healthcare Third Quarter twenty twenty five Earnings Conference Call. Today's call is being recorded. At this time, for opening remarks and introductions, I would like to turn the call over to Vice President of Investor Relations, Mr. Frank Morgan. Please go ahead, sir.Speaker1Good morning, and welcome to everyone on today's call. With me this morning is our CEO, Sam Hazen and CFO, Mike Marks. ...

Core Insights - HCA Healthcare reported a revenue of $19.16 billion for the quarter ended September 2025, reflecting a year-over-year increase of 9.6% [1] - The earnings per share (EPS) for the quarter was $6.96, up from $5.05 in the same quarter last year, indicating a significant growth [1] - The reported revenue exceeded the Zacks Consensus Estimate of $18.5 billion by 3.55%, and the EPS surpassed the consensus estimate of $5.65 by 23.19% [1] Financial Performance Metrics - Revenue per Equivalent Admission was $18,446, exceeding the average estimate of $17,966.71 [4] - Equivalent Admissions reached 1.04 billion, slightly above the estimated 1.03 billion [4] - Total Admissions were reported at 577.8 million, compared to the estimated 575.37 million [4] - Patient Days totaled 2,692.51, which was below the average estimate of 2,718.89 [4] - The Average Length of Stay remained consistent at 5 days, matching the estimate [4] - The number of hospitals remained stable at 191, in line with estimates [4] - Inpatient Revenue per Admission was $19,908, surpassing the average estimate of $19,196.22 [4] - Equivalent Patient Days were reported at 4.84 million, slightly below the average estimate of 4.86 million [4] - Licensed Beds at the end of the period were 50,577, exceeding the average estimate of 50,346 [4] - The number of freestanding outpatient surgery centers was 123, slightly below the average estimate of 124 [4] Stock Performance - HCA shares have returned +6.1% over the past month, outperforming the Zacks S&P 500 composite's +1.3% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Insights - HCA Healthcare Inc. reported strong third-quarter 2025 financial results, exceeding analyst expectations in both revenue and earnings [1][2]. Financial Performance - Total revenues reached $19.16 billion, marking a 9.6% year-over-year increase and surpassing the consensus estimate of $18.57 billion [2]. - Adjusted earnings were reported at $6.96, up from $4.90 a year ago, exceeding the consensus of $5.72 [2]. - Adjusted EBITDA totaled $3.87 billion, compared to $3.267 billion in the same quarter last year [4]. - Cash flows from operating activities amounted to $4.42 billion, an increase from $3.515 billion in Q3 2024 [4]. Operational Metrics - Same-facility admissions increased by 2.1%, while same-facility equivalent admissions rose by 2.4% [3]. - Emergency room visits at same facilities grew by 1.3%, inpatient surgeries increased by 1.4%, and outpatient surgeries rose by 1.1% [3]. - Same-facility revenue per equivalent admission grew by 6.6% [3]. Guidance and Outlook - HCA Healthcare raised its fiscal year 2025 guidance for adjusted earnings from $25.50 to $27 to a new range of $27 to $28, exceeding the consensus of $26.33 [5]. - The sales guidance for 2025 was revised from $74 billion to $76 billion to a new range of $75 billion to $76.5 billion, compared to the consensus of $75.02 billion [5]. - The forecast for 2025 net income was updated to a range of $6.495 billion to $6.715 billion, up from the previous guidance of $6.11 billion to $6.48 billion [5]. - Adjusted EBITDA guidance was raised from a range of $14.70 billion to $15.30 billion to a new range of $15.25 billion to $15.65 billion [6]. Stock Performance - HCA Healthcare shares increased by 3.83% to $457.00, reaching a new 52-week high [6].

Core Insights - HCA Healthcare reported quarterly earnings of $6.96 per share, exceeding the Zacks Consensus Estimate of $5.65 per share, and up from $5.05 per share a year ago, representing an earnings surprise of +23.19% [1] - The company achieved revenues of $19.16 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 3.55%, and an increase from $17.49 billion year-over-year [2] - HCA shares have increased approximately 46.7% year-to-date, significantly outperforming the S&P 500's gain of 14.6% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $7.39 on revenues of $19.41 billion, and for the current fiscal year, it is $26.17 on revenues of $74.86 billion [7] - The estimate revisions trend for HCA was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Medical Services industry, to which HCA belongs, is currently ranked in the top 40% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8]

Core Insights - HCA Healthcare raised its full-year outlook following an increase in profit and revenue for the third quarter, driven by growth in same-facility admissions [1] Financial Performance - The company reported higher profit and revenue in the third quarter compared to previous periods [1] - Same-facility admissions experienced growth, contributing to the improved financial results [1] Outlook - HCA Healthcare's revised full-year outlook reflects confidence in continued performance and operational strength [1]

Financial Performance - Revenues for Q3 2025 increased by 9.6% to $19.161 billion compared to Q3 2024[3] - Net income attributable to HCA Healthcare, Inc. rose by 29.4% to $1.643 billion, or $6.96 per diluted share[3] - Adjusted EBITDA for Q3 2025 increased by 18.5% to $3.870 billion[2] - Revenues for Q3 2025 reached $19,161 million, a 9.6% increase from $17,487 million in Q3 2024[19] - Net income attributable to HCA Healthcare, Inc. for Q3 2025 was $1,643 million, up 29.3% from $1,270 million in Q3 2024[19] - Diluted earnings per share for Q3 2025 increased to $6.96, compared to $4.88 in Q3 2024, representing a 42.7% growth[19] - For the nine months ended September 30, 2025, revenues totaled $56,087 million, a 7.3% increase from $52,318 million in the same period of 2024[20] - Net income for the nine months ended September 30, 2025, was $5,619 million, reflecting a 13.0% increase from $4,971 million in 2024[23] - HCA Healthcare, Inc. experienced a comprehensive income of $4,976 million for the nine months ended September 30, 2025, up from $4,369 million in 2024[20] Cash Flow and Assets - Cash flows from operating activities totaled $4.416 billion, up from $3.515 billion in Q3 2024[7] - Cash and cash equivalents at the end of Q3 2025 were $997 million, down from $2,888 million at the end of Q3 2024[23] - Total assets as of September 30, 2025, amounted to $59,747 million, compared to $59,513 million at the end of 2024[22] - The company reported a net cash provided by operating activities of $10,277 million for the nine months ended September 30, 2025, compared to $7,955 million in 2024[23] Guidance and Forecast - The company updated its 2025 revenue guidance to a range of $75.000 to $76.500 billion[12] - The revised net income guidance for 2025 is now $6.495 to $6.715 billion[12] - For the year ending December 31, 2025, the company forecasts revenues between $75,000 million and $76,500 million[32] - The forecasted net income attributable to HCA Healthcare, Inc. for 2025 is projected to be between $6,495 million and $6,715 million[32] Operational Metrics - Same facility admissions increased by 2.1% and same facility equivalent admissions increased by 2.4% in Q3 2025[5] - Total admissions increased by 2.8% to 577,804 in Q3 2025 from 562,100 in Q3 2024[25] - Revenue per equivalent admission rose to $18,446 in Q3 2025, a 6.1% increase from $17,381 in Q3 2024[25] - The average length of stay decreased to 4.660 days in Q3 2025 from 4.787 days in Q3 2024[25] - The number of hospitals increased to 191 in Q3 2025, up from 187 in Q3 2024[25] Shareholder Returns - The company repurchased 6.514 million shares at a cost of $2.498 billion during Q3 2025[8] - A quarterly cash dividend of $0.72 per share was declared, payable on December 29, 2025[9] Debt and Capital Expenditures - Long-term debt, less debt issuance costs, was $38,401 million as of September 30, 2025, slightly down from $38,333 million at the end of 2024[22] - Capital expenditures for 2025, excluding acquisitions, are estimated to be approximately $5.0 billion[12] - Adjusted EBITDA margin improved to 20.2% in Q3 2025 from 18.7% in Q3 2024[28]

Core Insights - HCA Healthcare exceeded Wall Street profit estimates for the third quarter, driven by strong demand for its medical care services [1] Financial Performance - The company reported a profit that surpassed analysts' expectations, indicating robust operational performance in the healthcare sector [1]

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Earnings Report - HCA Healthcare, Inc. is set to release its third-quarter earnings results on October 24, with analysts expecting earnings of $5.73 per share, an increase from $4.90 per share in the same period last year [1] - The consensus estimate for quarterly revenue is $18.56 billion, compared to $17.49 billion a year earlier [1] Recent Performance - On July 25, HCA Healthcare reported better-than-expected earnings for the second quarter [2] - Shares of HCA Healthcare fell 0.2% to close at $440.16 on the last trading day [2] Analyst Ratings - Mizuho analyst Ann Hynes maintained an Outperform rating and raised the price target from $425 to $475 [4] - UBS analyst Andrew Mok maintained a Buy rating and increased the price target from $438 to $495 [4] - Goldman Sachs analyst Scott Fidel initiated a Buy rating with a price target of $470 [4] - Keybanc analyst Matthew Gilmore maintained an Overweight rating and raised the price target from $370 to $465 [4] - Barclays analyst Andrew Mok maintained an Overweight rating and increased the price target from $390 to $445 [4]

Earnings Report - HCA Healthcare is set to release its third-quarter earnings results on October 24, with analysts expecting earnings of $5.73 per share, an increase from $4.90 per share in the same period last year [1] - The consensus estimate for quarterly revenue is $18.56 billion, compared to $17.49 billion a year earlier [1] Recent Performance - On July 25, HCA Healthcare reported better-than-expected earnings for the second quarter [2] - Shares of HCA Healthcare fell by 0.2% to close at $440.16 on the last trading day [2] Analyst Ratings - Mizuho analyst Ann Hynes maintained an Outperform rating and raised the price target from $425 to $475 [4] - UBS analyst Andrew Mok maintained a Buy rating and increased the price target from $438 to $495 [4] - Goldman Sachs analyst Scott Fidel initiated a Buy rating with a price target of $470 [4] - Keybanc analyst Matthew Gilmore maintained an Overweight rating and raised the price target from $370 to $465 [4] - Barclays analyst Andrew Mok maintained an Overweight rating and increased the price target from $390 to $445 [4]