Why Is HCA (HCA) Up 10% Since Last Earnings Report?

Core Viewpoint - HCA Healthcare has shown strong performance in its recent earnings report, with shares increasing by approximately 10% since the last report, outperforming the S&P 500 [1][2]. Financial Performance - HCA Healthcare reported Q4 2025 adjusted earnings per share (EPS) of $8.01, exceeding the Zacks Consensus Estimate by 8.8%, and reflecting a year-over-year increase of 28.8% [3]. - Revenues for the quarter rose 6.7% year over year to $19.5 billion, although this figure was 0.6% below the consensus estimate [3]. - Adjusted EBITDA for the quarter was $4.1 billion, a 10.8% increase year over year, surpassing the estimate of $3.9 billion [7]. Operational Metrics - Same-facility equivalent admissions grew by 2.5% year over year, while same-facility admissions increased by 2.4%, both matching growth estimates [5]. - Same-facility revenue per equivalent admission rose by 2.9% year over year, which was lower than the estimated growth of 4.2% [5]. - Operating expenses increased by 5.8% year over year to $15.4 billion, which was below the estimated $15.6 billion [6]. Cash Flow and Capital Deployment - HCA generated $12.6 billion in cash from operations in 2025, marking a 20.2% improvement from the previous year [10]. - The company repurchased shares worth $2.6 billion in Q4 and has an additional $10 billion share buyback program approved [12]. Financial Position - As of December 31, 2025, HCA had cash and cash equivalents of $1 billion, a decrease of 46.2% from the end of 2024 [8]. - Total assets increased by 2% year over year to $60.7 billion, while long-term debt rose by 8.5% to $41.6 billion [9]. Future Guidance - For 2026, HCA anticipates annual revenues between $76.5 billion and $80 billion, indicating a potential 3.5% rise from 2025 [14]. - Adjusted EBITDA is expected to range from $15.55 billion to $16.45 billion, suggesting a 2.8% growth from the previous year [14]. - EPS is forecasted to be between $29.10 and $31.50, implying a 7% increase from 2025 [15]. Market Sentiment - Estimates for HCA have been trending upward, with a Zacks Rank of 3 (Hold), indicating expectations for an in-line return in the coming months [16][18].