Hospital Operator HCA Healthcare Is Set For Solid Growth, Higher Value-Analyst

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]