Demand Environment - The demand environment has shown some natural variability, which has become an expected aspect of the business over time [2] - There was a noticeable slowdown in volume growth during the second quarter compared to previous periods [2] - Medicare and Medicaid volumes were specifically highlighted as being weaker than anticipated at the beginning of the year [3] Volume Trends - The transition from Q1 to Q2 revealed key moving parts affecting volume trends, particularly in the Medicare and Medicaid sectors [3]

Financial Data and Key Metrics Changes - The company reported a 6.4% top-line growth in the quarter, which is considered strong despite lower volume growth [14][18] - Volume growth for the first six months was 2.3%, which is below the original guidance of 3% to 4% [7][24] - Medicaid volume decreased by 1.2% year-to-date compared to the prior year, which was unexpected [8][12] - Self-pay volume increased by only 1.5% year-to-date, significantly lower than the anticipated 3% to 4% range [10][12] - Medicare volume growth was at 3%, slightly below the initial estimates of 3.5% to 4% [16][18] Business Line Data and Key Metrics Changes - The commercial book excluding exchanges saw a growth of just under 1% in the first half of the year, compared to a normal growth of 1% to 2% [40][46] - Total commercial book growth, including exchanges, was around 4% to 4.5% [42][46] - Exchange volume growth was 13% year-to-date, down from a 40% increase in the previous year [32][34] Market Data and Key Metrics Changes - The healthcare exchanges accounted for about 8% of the company's volume and 10% of revenue, with utilization patterns being between commercial and Medicaid [120][127] - The company noted that exchange patients utilize more emergency care and fewer elective procedures compared to the average employer-based population [119][122] Company Strategy and Development Direction - The company remains focused on organic growth within its 43 markets, with a robust pipeline of investment opportunities [195][196] - M&A activity is ongoing, particularly in the outpatient sector, with recent acquisitions of urgent care systems and freestanding emergency rooms [197][200] - The company emphasizes a disciplined approach to capital allocation, balancing investments, dividends, and share repurchases [200][212] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand environment despite some volume softness, indicating a stable operating environment for labor costs [87][89] - The company is closely monitoring the potential impacts of enhanced exchange subsidies and Medicaid supplemental payments, with plans to provide more guidance in the fourth quarter [114][118] - Management highlighted the importance of revenue integrity and operational efficiency as key components of their resiliency plan [144][150] Other Important Information - The company raised its guidance by $300 million at the midpoint, with $150 million attributed to state supplemental payments [54][56] - There is an expected decline of about $130 million in state supplemental payments in the second half of the year [58][60] - Labor costs are stabilizing, with a notable decrease in the use of contract labor [87][89] Q&A Session Summary Question: Can you expand on the volume trends from Q1 to Q2? - Management noted that volume growth was lower than expected, particularly in Medicaid and self-pay categories, contributing to the overall shortfall [7][12] Question: How do you view the impact of exchange growth on comparisons? - Management acknowledged that last year's strong exchange enrollment growth made this year's comparisons more challenging [24][28] Question: What are the expectations for the second half of the year? - Management indicated that the implied growth rate in the second half is consistent with the first half, considering various moving parts [72][76] Question: How is the company addressing labor cost pressures? - Management reported stable labor costs and improvements in staff retention, with a focus on reducing premium labor usage [87][89] Question: What is the company's stance on enhanced exchange subsidies? - Management is optimistic about the potential extension of subsidies but is awaiting further developments [111][118] Question: How does the company view its M&A strategy moving forward? - Management emphasized a disciplined approach to M&A, focusing on organic growth while remaining active in outpatient acquisitions [197][200]

Financial Data and Key Metrics Changes - The company reported a 6.4% top-line growth in the quarter, despite a volume growth of only 2.3% equivalent admissions year-to-date, which was below the original guidance of 3% to 4% [15][7][5] - Medicaid volume decreased by 1.2% year-to-date, which was expected to be flat or slightly up, impacting approximately 17% of total volume [8][7] - Self-pay volume increased by only 1.5% year-to-date, significantly lower than the anticipated 3% to 4% range [11][13] - Medicare volume growth was at 3%, slightly below the initial estimate of 3.5% to 4% [17][19] Business Line Data and Key Metrics Changes - The commercial book, excluding exchanges, saw growth of just under 1% in the first half of the year, compared to a normal range of 1% to 2% growth [39][41] - Total commercial book growth, including exchanges, was around 4% to 4.5% year-to-date [43][45] - Exchange volume growth was 3% from Q1 to Q2, compared to a 15% increase in the previous year [31][29] Market Data and Key Metrics Changes - The healthcare exchanges accounted for about 8% of total volume and 10% of revenue, with utilization patterns falling between commercial and Medicaid populations [121][127] - The company noted that exchange patients utilize emergency care more than average employer-based patients and have lower utilization of elective procedures [123][121] Company Strategy and Development Direction - The company remains focused on organic growth within its 43 markets, investing 45% to 55% of capital back into these markets [193][196] - M&A activity is ongoing, with two acute care hospitals acquired this year and continued interest in outpatient acquisitions [198][200] - The company is committed to maintaining a balanced approach to capital allocation, including dividends and share repurchase programs [201][210] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the stability of the labor market, noting improvements in wage inflation and retention rates [88][90] - The company is actively monitoring the potential impacts of enhanced exchange subsidies and Medicaid supplemental payments, with plans to provide more guidance in the fourth quarter [115][120] - Management highlighted the importance of revenue integrity and asset utilization as key components of their resiliency plan [145][146] Other Important Information - The company is leveraging advanced technologies, including AI, to improve claims processing and reduce denials [156][162] - Management indicated that the proposed OPPS rule was disappointing, while the inpatient IPPS rule was more favorable than expected [189][191] Q&A Session Summary Question: Can you elaborate on the volume trends from Q1 to Q2? - Management noted a decrease in Medicaid and self-pay volumes, contributing to lower overall volume growth than anticipated [7][11] Question: How do you view the impact of exchange growth on comparisons? - Management acknowledged that last year's exchange enrollment growth created a tougher comparison for this year [25][27] Question: What are the expectations for the second half of the year? - Management indicated that the implied growth rate for the second half is consistent with the first half, considering various moving parts [74][78] Question: How is the company addressing labor costs? - Management reported stable labor costs and improvements in retention rates, with a focus on reducing reliance on contract labor [88][90] Question: What is the company's stance on enhanced exchange subsidies? - Management is optimistic about the potential extension of subsidies but emphasized the need for clarity before making specific estimates [112][115] Question: How does the company view its M&A strategy moving forward? - Management confirmed ongoing M&A activity, particularly in outpatient services, while maintaining a disciplined approach to capital allocation [198][200]

Part I. Financial Information [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) HCA Healthcare's unaudited consolidated financial statements detail performance and position for Q2 and 6M 2025 and 2024. [Condensed Consolidated Income Statements](index=3&type=section&id=Condensed%20Consolidated%20Income%20Statements) HCA Healthcare's income statements detail Q2 and 6M 2025 financial performance, highlighting revenue, net income, and EPS growth. | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | 6M 2025 (Millions) | 6M 2024 (Millions) | | :----------------------------------- | :------------------ | :------------------ | :------------------ | :------------------ | | Revenues | $18,605 | $17,492 | $36,926 | $34,831 | | Net income attributable to HCA Healthcare, Inc. | $1,653 | $1,461 | $3,263 | $3,052 | | Diluted earnings per share | $6.83 | $5.53 | $13.28 | $11.47 | | Shares used in diluted EPS (millions) | 241.911 | 264.071 | 245.654 | 266.044 | - Revenues increased by **$1.113 billion (6.4%)** for Q2 2025 and **$2.095 billion (6.0%)** for the six months ended June 30, 2025, compared to the respective prior-year periods[9](index=9&type=chunk) - Net income attributable to HCA Healthcare, Inc. grew by **$192 million (13.1%)** in Q2 2025 and **$211 million (6.9%)** for the six months ended June 30, 2025, year-over-year[9](index=9&type=chunk) [Condensed Consolidated Comprehensive Income Statements](index=4&type=section&id=Condensed%20Consolidated%20Comprehensive%20Income%20Statements) Comprehensive income statements detail total comprehensive income, including net income and other income/loss items. | Metric | Q2 2025 (Millions) | Q2 2024 (Millions) | 6M 2025 (Millions) | 6M 2024 (Millions) | | :----------------------------------- | :------------------ | :------------------ | :------------------ | :------------------ | | Net income | $1,891 | $1,687 | $3,716 | $3,489 | | Other comprehensive income (loss) | $48 | $0 | $78 | $(8) | | Comprehensive income | $1,939 | $1,687 | $3,794 | $3,481 | | Comprehensive income attributable to HCA Healthcare, Inc. | $1,701 | $1,461 | $3,341 | $3,044 | - Other comprehensive income (loss) before taxes for Q2 2025 was **$58 million**, primarily driven by foreign currency translation gains of **$55 million**[11](index=11&type=chunk) - Comprehensive income attributable to HCA Healthcare, Inc. increased by **$240 million (16.4%)** in Q2 2025 and **$297 million (9.8%)** for the six months ended June 30, 2025, year-over-year[11](index=11&type=chunk) [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Balance sheets show stable total assets, decreased current assets, increased current liabilities, and negative working capital. | Item | June 30, 2025 (Millions) | December 31, 2024 (Millions) | | :----------------------------------- | :------------------------ | :-------------------------- | | Total Assets | $59,536 | $59,513 | | Current Assets | $15,563 | $16,414 | | Property and equipment, net | $30,123 | $29,414 | | Goodwill and other intangible assets | $10,273 | $10,093 | | Total Liabilities | $55,775 | $53,958 | | Current Liabilities | $15,939 | $15,177 | | Long-term debt, net | $39,379 | $38,333 | | Stockholders' deficit attributable to HCA Healthcare, Inc. | $(4,394) | $(2,499) | | Noncontrolling interests | $3,156 | $3,054 | - Cash and cash equivalents decreased significantly from **$1,933 million** at December 31, 2024, to **$939 million** at June 30, 2025[14](index=14&type=chunk) - The company moved from a **positive working capital of $1,237 million** at December 31, 2024, to a **negative working capital of $376 million** at June 30, 2025, primarily due to increased short-term borrowings and other accrued expenses, and a decline in cash[14](index=14&type=chunk)[115](index=115&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity (Deficit)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity%20(Deficit)) Stockholders' equity statements detail changes for Q2 and 6M 2025 and 2024, highlighting comprehensive income, share repurchases, and dividends. | Item | Balances, Dec 31, 2024 (Millions) | Balances, June 30, 2025 (Millions) | | :----------------------------------- | :------------------------------- | :------------------------------ | | Common Stock Par Value | $3 | $2 | | Accumulated Other Comprehensive Loss | $(387) | $(309) | | Retained Deficit | $(2,115) | $(4,087) | | Stockholders' Deficit Attributable to HCA Healthcare, Inc. | $(2,499) | $(4,394) | | Noncontrolling Interests | $3,054 | $3,156 | | Total Equity (Deficit) | $555 | $(1,238) | - During the six months ended June 30, 2025, the company repurchased **14.793 million shares** of common stock for **$5.011 billion**[16](index=16&type=chunk)[104](index=104&type=chunk)[117](index=117&type=chunk) - Cash dividends declared were **$0.72 per share** for both quarters in 2025, totaling **$351 million** for the six months ended June 30, 2025[16](index=16&type=chunk)[117](index=117&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash flow statements highlight cash sources and uses for 6M 2025 and 2024, showing increased operating cash and higher financing outflows. | Cash Flow Category | 6M 2025 (Millions) | 6M 2024 (Millions) | | :----------------------------------- | :------------------ | :------------------ | | Net cash provided by operating activities | $5,861 | $4,440 | | Net cash used in investing activities | $(2,283) | $(2,235) | | Net cash used in financing activities | $(4,584) | $(2,309) | | Change in cash and cash equivalents | $(994) | $(104) | | Cash and cash equivalents at end of period | $939 | $831 | - Net cash provided by operating activities increased by **$1.421 billion**, primarily due to a **$392 million** increase in net income (excluding non-cash impacts of facility sales) and an **$853 million** decline in income taxes paid due to an IRS deferral[18](index=18&type=chunk)[115](index=115&type=chunk) - Net cash used in financing activities increased by **$2.275 billion**, driven by **$5.011 billion** in common stock repurchases and **$5.660 billion** in long-term debt repayments[18](index=18&type=chunk)[117](index=117&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes provide essential disclosures for understanding the financial statements, covering accounting policies, acquisitions, debt, contingencies, and segment information. [NOTE 1 — BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES](index=8&type=section&id=NOTE%201%20%E2%80%94%20BASIS%20OF%20PRESENTATION%20AND%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This note outlines the company's reporting entity, interim financial statement preparation, and revenue recognition policies, including uncompensated care costs. - HCA Healthcare, Inc. operates **191 hospitals**, **124 freestanding surgery centers**, and **29 freestanding endoscopy centers** across 20 states and England as of June 30, 2025[19](index=19&type=chunk) Revenues by Primary Third-Party Payer Classification (Q2 2025 vs Q2 2024) | Payer Classification | Q2 2025 Revenue (Millions) | Q2 2025 Ratio | Q2 2024 Revenue (Millions) | Q2 2024 Ratio | | :----------------------------------- | :------------------------ | :------------- | :------------------------ | :------------- | | Managed care and insurers | $9,124 | 49.1% | $8,

Industry Overview - The healthcare sector has seen a 0.79% decline year-to-date, making it the worst performer among the S&P 500's 11 sectors and the only one in negative territory [1] - Over the past three months, healthcare remains the worst-performing sector [1] - National healthcare expenditures in the U.S. rose from $3.756 trillion in 2019 to $5.049 trillion in 2024, a 34.42% increase, while EBITDA for healthcare services has only seen a compound annual growth rate (CAGR) of 8.5% during the same period [3][4] Company Performance - HCA Healthcare has gained 14% year-to-date, contrasting sharply with the 44% loss experienced by UnitedHealth Group [2] - HCA Healthcare reported Q2 results with EPS of $6.84, exceeding expectations of $6.20, and revenues of $18.61 billion, surpassing expectations of $18.49 billion, marking a 24.4% and 6.4% year-over-year increase, respectively [11] - HCA's net income increased by 13.1% to $1.653 billion [11] Company Growth and Strategy - HCA Healthcare is the largest healthcare system in the U.S., with a market cap of $81.56 billion, owning 222 hospitals and over 2,000 outpatient sites [7][8] - The company has acquired 23 companies from 2011 to 2024, including six in 2017, demonstrating a strong focus on mergers and acquisitions [10] - HCA's free cash flow increased by 36.63% from $4.127 billion in 2022 to $5.639 billion in 2024 [10] Analyst Ratings and Forecasts - HCA Healthcare has a consensus Moderate Buy rating, with nine out of 18 analysts assigning it a Buy rating and the average 12-month price target set at $396.46, indicating a potential upside of 16.56% [13] - The company forecasts EPS growth of 12.21% to $28.03 for the next year [12] - HCA Healthcare currently pays a modest dividend yielding 0.85%, with a low dividend payout ratio of 12.11%, indicating a balance between rewarding shareholders and reinvesting for growth [14]

Group 1 - The article discusses the uncertainty faced by investors during the onset of COVID-19, highlighting the dilemma of whether to sell stocks amid falling prices or to buy in anticipation of a recovery if the virus is contained [1] - It mentions a long/short partnership strategy as a potential approach for investors with 25 years of experience in business and finance [1] Group 2 - The article does not provide specific company or industry insights, focusing instead on general investment strategies and the author's background [2][3]

Core Insights - HCA Healthcare, Inc. reported second-quarter 2025 adjusted earnings per share (EPS) of $6.84, exceeding the Zacks Consensus Estimate by 10.5% and showing a year-over-year improvement of 24.4% [1][9] - Revenues reached $18.6 billion, reflecting a 6.4% year-over-year increase and surpassing the consensus mark by 0.7% [1][9] Financial Performance - The quarterly results were supported by increased patient volumes, higher same-facility revenue per equivalent admission, and a rise in emergency room visits [2] - Same-facility equivalent admissions grew by 1.7% year over year, while same-facility admissions increased by 1.8%, both below growth estimates of 3.8% and 4% respectively [3] - Same-facility revenue per equivalent admission rose by 4% year over year, exceeding the growth estimate of 3.2% [3] - Adjusted EBITDA improved by 8.4% year over year to $3.8 billion, beating the estimate of $3.6 billion [5] Cost and Expenses - Salaries and benefits, supplies, and other operating expenses totaled $14.78 billion, increasing by 6% year over year but lower than the estimate of $14.84 billion [4] - Same-facility inpatient surgeries decreased by 0.3% year over year, missing the growth estimate of 1.5%, while same-facility outpatient surgeries fell by 0.6% [4] Cash Flow and Capital Management - HCA generated $5.9 billion in cash from operations in the first half of 2025, a 32% increase from the prior-year period [8] - The company repurchased $2.5 billion in shares during the quarter and had a remaining capacity of $5.8 billion under its buyback authorization [10] Guidance and Outlook - HCA revised its 2025 revenue guidance to between $74 billion and $76 billion, up from the previous range of $72.8 billion to $75.8 billion, indicating a 6.2% rise from 2024 [11] - Adjusted EBITDA is now expected to be in the range of $14.7 billion to $15.3 billion, higher than the earlier forecast [12] - EPS is projected to be in the $25.5 to $27 range for 2025, an increase from the previous estimate [13]

Financial Data and Key Metrics Changes - The company reported a 24% increase in diluted earnings per share, adjusted to $6.84, reflecting strong financial results for the second quarter [6] - Revenue growth was 6.4%, driven by increased demand for services, improved payer mix, and stable patient acuity levels [6][13] - Adjusted EBITDA margin improved by 30 basis points compared to the prior year quarter, with adjusted EBITDA growing 8.4% year-over-year [13][14] Business Line Data and Key Metrics Changes - Equivalent admissions increased by 1.7% for the quarter and 2.3% year-to-date, with managed care equivalent admissions growing by 4% [12] - Medicare admissions grew by 3%, slightly below expectations, while Medicaid saw a slight decline and self-pay increased slightly [12][13] - The company experienced a $100 million increase in net benefit from Medicaid supplemental payment programs compared to the prior year quarter [14] Market Data and Key Metrics Changes - Approximately 60% of the company's Medicaid volumes and revenue are in non-expansion states, which mitigates the expected impact of recent federal policy changes [9] - The company anticipates some individuals will lose insurance coverage due to changes in federal policies, but believes its financial resiliency program will offset these effects [10][11] Company Strategy and Development Direction - The company aims to combine high-quality local health networks with national capabilities to reinforce its competitive position and respond to market dynamics [8] - A balanced capital allocation strategy is in place, with $1.2 billion in capital expenditures, $2.5 billion in share repurchases, and $171 million in dividends planned for 2025 [15][19] - The company is optimistic about future growth, with a diversified portfolio of markets and ongoing investments in outpatient facilities and inpatient capacity [20][57] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to manage the impacts of federal policy changes and maintain a strong balance sheet [11] - The company has seen a recovery in facilities affected by Hurricane Saline and Milton, with better-than-expected performance in some markets [21] - Management noted that 14 out of 15 divisions grew their admissions, indicating strong underlying business performance despite some volume metrics being lower than expected [33][34] Other Important Information - The company is actively developing resiliency programs to mitigate potential adverse impacts from federal policy changes and is focused on operational improvements [40] - The company has approximately $5.5 billion in capital projects underway, which are expected to enhance its network and service capacity [57][108] Q&A Session Summary Question: Guidance update and impact of Tennessee DPP program - Management confirmed that the updated guidance reflects the approval of the Tennessee DPP program and better visibility on other programs [27][28] Question: Resiliency programs and potential headwinds - Management indicated that their financial resiliency program should offset adverse impacts from federal policy changes, with further details to be provided in the fourth quarter earnings call [39][40] Question: Commercial volume trends and consumer confidence - Management noted that managed care equivalent admissions are up 4% year-to-date, with health care exchanges performing better than expected [45][46] Question: Market share dynamics and local market performance - Management reported sustained market share gains, with a focus on improving network integrity and patient retention [56][57] Question: Changes in Medicare Advantage behavior and revenue cycle investments - Management stated that there have been no significant impacts from denial activities, reflecting improvements in revenue cycle management [67][68] Question: Update on commercial contracting and capital expenditures - Management confirmed that they are largely contracted for 2025 and about 80% contracted for 2026, with ongoing capital investments to enhance service capacity [106][108]

Financial Data and Key Metrics Changes - The company reported a 24% increase in diluted earnings per share, adjusted to $6.84, reflecting solid revenue growth of 6.4% driven by increased demand for services and improved payer mix [5][12] - Adjusted EBITDA margin improved by 30 basis points compared to the prior year quarter, with adjusted EBITDA growing 8.4% over the prior year quarter [12][13] - Cash flow from operations was $4.2 billion in the quarter, with capital allocation including $1.2 billion in capital expenditures and $2.5 billion in share repurchases [14][15] Business Line Data and Key Metrics Changes - Equivalent admissions increased by 1.7% for the quarter and 2.3% for the year, with managed care equivalent admissions growing by 4% year-to-date [11][12] - Medicare admissions grew by 3%, slightly below expectations, while Medicaid was down slightly and self-pay was up slightly [11][12] - The company experienced a 1% improvement in same facility contract labor costs as a percentage of total labor costs [13] Market Data and Key Metrics Changes - Approximately 60% of the company's Medicaid volumes and revenue are in non-expansion states, which lessens the expected impact from recent federal policy changes [7] - Health care exchanges grew by 15.8% year-to-date, while commercial managed care admissions were up just short of 1% [44] - The company noted that 14 out of 15 divisions grew their adjusted admissions, with specific procedure volumes such as cardiac procedures up 5% and obstetrics volumes up 3% [32] Company Strategy and Development Direction - The company aims to combine high-quality local health networks with national capabilities to reinforce its competitive position and respond effectively to market dynamics [6] - The company is focused on innovation through technology and increasing efficiencies while maintaining accountability for delivering results [6] - A balanced strategy for capital allocation is in place, with ongoing investments in outpatient facilities and inpatient capacity [58][108] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing a strong balance sheet and an experienced team, while acknowledging potential challenges from federal policy changes [10] - The company is developing resiliency programs to offset potential adverse impacts from the expiration of enhanced premium tax credits [39] - Management noted that the recovery in hurricane-affected facilities is progressing better than anticipated, although some markets are underperforming [19][79] Other Important Information - The company updated its full-year 2025 guidance, expecting revenues to range between $74 billion and $76 billion, with net income projected between $6.11 billion and $6.48 billion [17] - The approval of the Tennessee directed payment program is expected to contribute positively to the company's financial outlook [17][63] Q&A Session Summary Question: Guidance update and impact of the Tennessee DPP program - Management confirmed that the updated guidance reflects the approval of the Tennessee program and better visibility on other programs, with half of the guidance increase attributed to state supplemental payment programs [24][63] Question: Resiliency programs and potential headwinds - Management indicated that resiliency programs are being developed to offset potential adverse impacts from federal policy changes, with more details expected in the fourth quarter earnings call [39][40] Question: Commercial volume trends and consumer confidence - Management noted that managed care equivalent admissions are up 4% year-to-date, with health care exchanges performing better than expected, while consumer confidence remains difficult to assess [44][45] Question: Market share dynamics and local market performance - Management reported sustained market share gains, with a focus on improving network integrity and responding to competitive dynamics in underperforming markets [56][58] Question: Changes in Medicare Advantage behavior and revenue cycle investments - Management stated that there have been no significant impacts from denial activities, reflecting improvements in revenue cycle management [68]

Core Insights - HCA Healthcare reported quarterly earnings of $6.84 per share, exceeding the Zacks Consensus Estimate of $6.19 per share, and up from $5.5 per share a year ago, representing an earnings surprise of +10.50% [1] - The company generated revenues of $18.61 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.68% and increasing from $17.49 billion year-over-year [2] - HCA shares have appreciated approximately 13.8% year-to-date, outperforming the S&P 500's gain of 8.2% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $5.52 on revenues of $18.45 billion, while for the current fiscal year, the estimate is $25.30 on revenues of $74.62 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 - Hospital industry, to which HCA belongs, is currently ranked in the top 22% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Another competitor in the same industry, Universal Health Services, is expected to report quarterly earnings of $4.85 per share, reflecting a year-over-year increase of +12.5% [9]