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HCA posted Q2 EPS of $6.84, up 24.4% year over year and beating estimates by 10.5%.
Revenues rose 6.4% to $18.6B, driven by higher patient admissions and ER visits across same-facility sites.
HCA raised 2025 EPS and revenue guidance while repurchasing $2.5B in shares during the quarter.
HCA Healthcare, Inc. (HCA - Free Report) reported second-quarter 2025 adjusted earnings per share (EPS) of $6.84, which surpassed the Zacks Consensus Estimate by 10.5%. The bottom line improved 24.4% year over year.
Revenues were $18.6 billion, which advanced 6.4% year over year. The top line beat the consensus mark by 0.7%.
The quarterly results were aided by growing patient volumes, increased same-facility revenue per equivalent admission and expanding emergency room visits. However, the upside is partly offset by an escalating cost level resulting from higher salaries and benefits, and supply expenses.
HCA Healthcare, Inc. Price, Consensus and EPS Surprise
Same-facility equivalent admissions grew 1.7% year over year in the second quarter, while same-facility admissions increased 1.8% year over year. However, the metrics lagged our growth estimates of 3.8% and 4%, respectively.
Same-facility revenue per equivalent admission advanced 4% year over year, higher than our growth estimate of 3.2%.
Same-facility inpatient surgeries dipped 0.3% year over year and missed our growth estimate of 1.5%. Same-facility outpatient surgeries slipped 0.6% year over year. Additionally, same-facility emergency room visits inched up 1.3% year over year in the quarter under review.
Salaries and benefits, supplies and other operating expenses totaled $14.78 billion, which escalated 6% year over year but were lower than our estimate of $14.84 billion.
Adjusted EBITDA improved 8.4% year over year to $3.8 billion, which beat our estimate of $3.6 billion.
HCA Healthcare operated 191 hospitals and roughly 2,500 ambulatory sites of care across 20 states and the United Kingdom as of June 30, 2025.
HCA’s Financial Update (as of June 30, 2025)
HCA Healthcare exited the second quarter with cash and cash equivalents of $939 million, which plunged 51.4% from the 2024-end level. It had a leftover capacity of approximately $6.2 billion under its credit facilities at the second-quarter end.
Total assets of $59.5 billion inched up marginally from the figure at 2024-end.
Long-term debt, excluding debt issuance costs and discounts, was $39.4 billion, up 2.7% from the figure as of Dec. 31, 2024. Short-term borrowings and long-term debt due within one year totaled $5.1 billion.
Capital expenditures were $1.2 billion minus acquisitions during the quarter.
HCA’s Cash Flow
HCA Healthcare generated $5.9 billion in cash from operations in the first half of 2025, which climbed 32% from the prior-year comparable period.
HCA Healthcare’s Capital Deployment Update
HCA bought back shares worth $2.5 billion in the second quarter. It had a leftover capacity of $5.8 billion under its buyback authorization as of June 30, 2025.
The board of directors also announced a dividend of 72 cents per share, which will be paid on Sept. 30, 2025, to its shareholders of record as of Sept. 16.
2025 Guidance Revised
Annual revenues are presently anticipated to be between $74 billion and $76 billion, up from the prior guidance of $72.8-$75.8 billion. The midpoint of the revised outlook indicates a 6.2% rise from the 2024 figure.
Management forecasts adjusted EBITDA to be in the range of $14.7-$15.3 billion, higher than the earlier view of $14.3-$15.1 billion. The midpoint of the updated guidance suggests 8.1% growth from the 2024 figure. Net income attributable to HCA Healthcare is presently expected to be between $6.11 billion and $6.48 billion, up from the prior outlook of $5.85-$6.29 billion.
EPS is forecasted to be in the $25.5-$27 band for 2025, higher than the earlier view of $24.05-$25.85. The midpoint of the revised guidance implies a 19.3% rise from the 2024 figure.
Capital expenditures, excluding acquisitions, are currently expected to be around $5 billion.
Of the Medical sector players that have reported second-quarter 2025 results so far, the bottom-line results of Tenet Healthcare Corporation (THC - Free Report) , Abbott Laboratories (ABT - Free Report) and Edwards Lifesciences Corporation (EW - Free Report) beat the respective Zacks Consensus Estimate.
Tenet Healthcare reported second-quarter 2025 adjusted earnings per share (EPS) of $4.02, which surpassed the Zacks Consensus Estimate by 41.6%. The bottom line soared 74% year over year. Net operating revenues advanced 3.2% year over year to $5.3 billion. The top line beat the consensus mark by 2.4%. Adjusted net income of $369 million climbed 63.3% year over year in the quarter under review. Adjusted EBITDA improved 18.6% year over year to $1.1 billion.
The Hospital Operations and Services segment recorded net operating revenues of $4 billion, which inched up 0.9% year over year. Adjusted EBITDA climbed 25.1% year over year to $623 million. Adjusted EBITDA margin of 15.6% improved 300 bps year over year. The Ambulatory Care segment’s net operating revenues rose 11.3% year over year to $1.3 billion. Adjusted EBITDA was $498 million, which advanced 11.4% year over year.
Abbott Laboratories’ second-quarter 2025 adjusted EPS of $1.26 beat the Zacks Consensus Estimate by 0.8%. The figure improved 10.5% from the prior-year quarter’s level. Worldwide sales of $11.14 billion were up 7.4% year over year on a reported basis. The top line surpassed the Zacks Consensus Estimate by 0.6%. Organically, sales improved 6.9% year over year.
Established Pharmaceuticals’ product sales increased 6.9% on a reported basis (7.7% on an organic basis) to $1.38 billion. Organic sales in key emerging markets improved 8.7% year over year. In the second quarter, the Medical Devices segment’s sales rose 13.4% year over year on a reported basis (12.2% organically) to $5.37 billion. The Diabetes Care division reported organic sales growth of 19.6% year over year. In the second quarter, the gross profit rose 8.9% year over year to $6.29 billion. The gross margin expanded 79 basis points (bps) to 56.4%.
Edwards Lifesciences reported second-quarter 2025 adjusted earnings per share (EPS) of 67 cents, which surpassed the Zacks Consensus Estimate by 8.1%. The figure increased 8.1% from the year-ago quarter’s level. Sales totaled $1.53 billion, up 11.7% year over year. The metric surpassed the Zacks Consensus Estimate by 2.7%. Global sales in the Transcatheter Aortic Valve Replacement product group amounted to $1.10 billion, up 8.9% year over year or 7.8% at constant currency (CER).
In Transcatheter Mitral and Tricuspid Therapies, sales totaled $134.5 million, up 61.9% from the prior-year figure on a reported basis (up 57.1% at CER). The Surgical Structural Heart segment delivered sales of $267 million, up 7.7% from the year-ago level on a reported basis and 6.8% at CER. The gross profit was $1.19 billion, up 8.6% year over year. The gross margin contracted 236 basis points (bps) to 77.5% due to a 25% increase in cost of sales. The operating margin contracted 62 bps to 26.7%.
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HCA Beats Q2 Earnings on Higher Admissions, Ups '25 EPS View
Key Takeaways
HCA Healthcare, Inc. (HCA - Free Report) reported second-quarter 2025 adjusted earnings per share (EPS) of $6.84, which surpassed the Zacks Consensus Estimate by 10.5%. The bottom line improved 24.4% year over year.
Revenues were $18.6 billion, which advanced 6.4% year over year. The top line beat the consensus mark by 0.7%.
The quarterly results were aided by growing patient volumes, increased same-facility revenue per equivalent admission and expanding emergency room visits. However, the upside is partly offset by an escalating cost level resulting from higher salaries and benefits, and supply expenses.
HCA Healthcare, Inc. Price, Consensus and EPS Surprise
HCA Healthcare, Inc. price-consensus-eps-surprise-chart | HCA Healthcare, Inc. Quote
HCA’s Quarterly Details
Same-facility equivalent admissions grew 1.7% year over year in the second quarter, while same-facility admissions increased 1.8% year over year. However, the metrics lagged our growth estimates of 3.8% and 4%, respectively.
Same-facility revenue per equivalent admission advanced 4% year over year, higher than our growth estimate of 3.2%.
Same-facility inpatient surgeries dipped 0.3% year over year and missed our growth estimate of 1.5%. Same-facility outpatient surgeries slipped 0.6% year over year. Additionally, same-facility emergency room visits inched up 1.3% year over year in the quarter under review.
Salaries and benefits, supplies and other operating expenses totaled $14.78 billion, which escalated 6% year over year but were lower than our estimate of $14.84 billion.
Adjusted EBITDA improved 8.4% year over year to $3.8 billion, which beat our estimate of $3.6 billion.
HCA Healthcare operated 191 hospitals and roughly 2,500 ambulatory sites of care across 20 states and the United Kingdom as of June 30, 2025.
HCA’s Financial Update (as of June 30, 2025)
HCA Healthcare exited the second quarter with cash and cash equivalents of $939 million, which plunged 51.4% from the 2024-end level. It had a leftover capacity of approximately $6.2 billion under its credit facilities at the second-quarter end.
Total assets of $59.5 billion inched up marginally from the figure at 2024-end.
Long-term debt, excluding debt issuance costs and discounts, was $39.4 billion, up 2.7% from the figure as of Dec. 31, 2024. Short-term borrowings and long-term debt due within one year totaled $5.1 billion.
Capital expenditures were $1.2 billion minus acquisitions during the quarter.
HCA’s Cash Flow
HCA Healthcare generated $5.9 billion in cash from operations in the first half of 2025, which climbed 32% from the prior-year comparable period.
HCA Healthcare’s Capital Deployment Update
HCA bought back shares worth $2.5 billion in the second quarter. It had a leftover capacity of $5.8 billion under its buyback authorization as of June 30, 2025.
The board of directors also announced a dividend of 72 cents per share, which will be paid on Sept. 30, 2025, to its shareholders of record as of Sept. 16.
2025 Guidance Revised
Annual revenues are presently anticipated to be between $74 billion and $76 billion, up from the prior guidance of $72.8-$75.8 billion. The midpoint of the revised outlook indicates a 6.2% rise from the 2024 figure.
Management forecasts adjusted EBITDA to be in the range of $14.7-$15.3 billion, higher than the earlier view of $14.3-$15.1 billion. The midpoint of the updated guidance suggests 8.1% growth from the 2024 figure. Net income attributable to HCA Healthcare is presently expected to be between $6.11 billion and $6.48 billion, up from the prior outlook of $5.85-$6.29 billion.
EPS is forecasted to be in the $25.5-$27 band for 2025, higher than the earlier view of $24.05-$25.85. The midpoint of the revised guidance implies a 19.3% rise from the 2024 figure.
Capital expenditures, excluding acquisitions, are currently expected to be around $5 billion.
HCA’s Zacks Rank
HCA Healthcare currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Medical Sector Releases
Of the Medical sector players that have reported second-quarter 2025 results so far, the bottom-line results of Tenet Healthcare Corporation (THC - Free Report) , Abbott Laboratories (ABT - Free Report) and Edwards Lifesciences Corporation (EW - Free Report) beat the respective Zacks Consensus Estimate.
Tenet Healthcare reported second-quarter 2025 adjusted earnings per share (EPS) of $4.02, which surpassed the Zacks Consensus Estimate by 41.6%. The bottom line soared 74% year over year. Net operating revenues advanced 3.2% year over year to $5.3 billion. The top line beat the consensus mark by 2.4%. Adjusted net income of $369 million climbed 63.3% year over year in the quarter under review. Adjusted EBITDA improved 18.6% year over year to $1.1 billion.
The Hospital Operations and Services segment recorded net operating revenues of $4 billion, which inched up 0.9% year over year. Adjusted EBITDA climbed 25.1% year over year to $623 million. Adjusted EBITDA margin of 15.6% improved 300 bps year over year. The Ambulatory Care segment’s net operating revenues rose 11.3% year over year to $1.3 billion. Adjusted EBITDA was $498 million, which advanced 11.4% year over year.
Abbott Laboratories’ second-quarter 2025 adjusted EPS of $1.26 beat the Zacks Consensus Estimate by 0.8%. The figure improved 10.5% from the prior-year quarter’s level. Worldwide sales of $11.14 billion were up 7.4% year over year on a reported basis. The top line surpassed the Zacks Consensus Estimate by 0.6%. Organically, sales improved 6.9% year over year.
Established Pharmaceuticals’ product sales increased 6.9% on a reported basis (7.7% on an organic basis) to $1.38 billion. Organic sales in key emerging markets improved 8.7% year over year. In the second quarter, the Medical Devices segment’s sales rose 13.4% year over year on a reported basis (12.2% organically) to $5.37 billion. The Diabetes Care division reported organic sales growth of 19.6% year over year. In the second quarter, the gross profit rose 8.9% year over year to $6.29 billion. The gross margin expanded 79 basis points (bps) to 56.4%.
Edwards Lifesciences reported second-quarter 2025 adjusted earnings per share (EPS) of 67 cents, which surpassed the Zacks Consensus Estimate by 8.1%. The figure increased 8.1% from the year-ago quarter’s level. Sales totaled $1.53 billion, up 11.7% year over year. The metric surpassed the Zacks Consensus Estimate by 2.7%. Global sales in the Transcatheter Aortic Valve Replacement product group amounted to $1.10 billion, up 8.9% year over year or 7.8% at constant currency (CER).
In Transcatheter Mitral and Tricuspid Therapies, sales totaled $134.5 million, up 61.9% from the prior-year figure on a reported basis (up 57.1% at CER). The Surgical Structural Heart segment delivered sales of $267 million, up 7.7% from the year-ago level on a reported basis and 6.8% at CER. The gross profit was $1.19 billion, up 8.6% year over year. The gross margin contracted 236 basis points (bps) to 77.5% due to a 25% increase in cost of sales. The operating margin contracted 62 bps to 26.7%.