Health Catalyst (HCAT) Exceeds Expectations in Q3 Earnings and Revenue
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 11 2025
0mins
Should l Buy HCAT?
Source: NASDAQ.COM
Earnings Performance: Health Catalyst (HCAT) reported quarterly earnings of $0.06 per share, exceeding the Zacks Consensus Estimate of $0.05, although down from $0.07 a year ago. The company also surpassed revenue expectations with $76.32 million, slightly below last year's $76.35 million.
Stock Outlook: Despite the earnings beat, Health Catalyst shares have declined about 60% this year, contrasting with the S&P 500's 14.4% gain. The stock currently holds a Zacks Rank #3 (Hold), indicating expected performance in line with the market.
Future Earnings Estimates: The consensus EPS estimate for the upcoming quarter is $0.10 on revenues of $74.59 million, with a fiscal year estimate of $0.19 on $309.8 million in revenues. The outlook for the industry may significantly influence the stock's performance.
Industry Context: Health Catalyst operates within the Zacks Medical Info Systems industry, which ranks in the top 27% of over 250 Zacks industries. Another industry player, Veeva Systems, is set to report its earnings soon, with expectations of a year-over-year earnings increase.
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Analyst Views on HCAT
Wall Street analysts forecast HCAT stock price to rise
7 Analyst Rating
3 Buy
4 Hold
0 Sell
Moderate Buy
Current: 1.180
Low
2.75
Averages
3.85
High
5.00
Current: 1.180
Low
2.75
Averages
3.85
High
5.00
About HCAT
Health Catalyst, Inc. is a provider of data and analytics technology and services to healthcare organizations. The Company's solution comprises its cloud-based data platform, applications, and expertise. Its segments include Technology and Professional Services. The Technology segment includes its data platform, analytics applications and support services and earns primarily from contracts that are cloud-based subscription arrangements, time-based license arrangements, and maintenance and support fees. The Professional Services segment is generally a combination of analytics, implementation, strategic advisory, outsourcing, and improvement services to deliver capabilities to its clients to fully configure and utilize the benefits of its technology offerings. Its clients, which are primarily healthcare providers, use its Solution to manage their data, derive analytical insights to operate their organization, and produce measurable clinical, financial, and operational improvements.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Health Catalyst Downgraded to Equal Weight by Wells Fargo Amid Revenue Concerns
- Rating Downgrade: Wells Fargo downgraded Health Catalyst (HCAT) from Overweight to Equal Weight and slashed its price target from $5 to $1, reflecting a pessimistic outlook on the company's future performance, with revenue and margin pressures expected to persist through 2027.
- Financial Outlook: In its March 12 earnings report, Health Catalyst projected first-quarter 2026 total revenue between $68 million and $70 million, with Adjusted EBITDA expected between $7 million and $8 million, indicating management's cautious stance on short-term performance.
- Strategic Adjustments: Under CEO Ben Albert's leadership, the company is focusing on improving long-term execution and addressing operational flaws, although the lack of a clear short-term solution suggests ongoing challenges, with management aiming to lay the groundwork for future success.
- Market Competition: While Health Catalyst is viewed as a potential investment, analysts note that certain AI stocks offer greater upside potential and carry less downside risk, indicating that market interest in HCAT may be waning.
See More
Health Catalyst Shares Drop After Wells Fargo Downgrade
- Downgrade Impact: Wells Fargo downgraded Health Catalyst's stock from Overweight to Equal Weight and slashed its price target from $5.00 to $1.00, reflecting concerns about structural issues that may persist even after the company's replatforming efforts.
- Mixed Financial Results: While Health Catalyst's Q4 2025 revenue exceeded expectations, its earnings per share of $0.08 fell short of forecasts, and the company provided a weak revenue outlook for Q1 2026, projecting a decline.
- High Volatility: Health Catalyst's shares have experienced 48 moves greater than 5% over the past year, with today's 4.2% drop indicating that the market considers this news significant but not fundamentally altering its perception of the business.
- Poor Long-term Returns: The stock has declined 49.3% year-to-date, trading at $1.16 per share, which is 74.9% below its 52-week high of $4.60 from March 2025, meaning that an investment of $1,000 five years ago would now be worth only $24.77.
See More
Health Catalyst Shares Drop Amid Downgrade
- Stock Price Decline: Health Catalyst (HCAT) shares fell for the fifth consecutive day on Wednesday after Wells Fargo downgraded its rating from Overweight to Equal Weight, reflecting market concerns about the company's future performance.
- Earnings Report Disappointment: Under new CEO Benjamin Albert, HCAT's Q4 2025 earnings report revealed a revenue decline and earnings miss, leading to a 26% drop in share price on Friday, indicating investor disappointment with the company's performance.
- Client Retention Risks: Analyst Stan Berenshteyn noted that HCAT faces near-term challenges related to reduced dollar retention as existing clients downsize their consumption, which could exert ongoing pressure on the company's revenue and margins, likely extending into 2027.
- Need for Strategic Adjustments: The Wells Fargo analyst stated that unless the new leadership demonstrates an improving track record or credible strategic changes, a neutral rating will be maintained, highlighting market uncertainty regarding HCAT's future development.
See More
Health Catalyst (HCAT) Q4 2025 Earnings Transcript
See More
Health Catalyst Shares Plunge 31% After Mixed Q4 Results
- Disappointing Earnings: Health Catalyst reported earnings of $0.08 per share for Q4, missing analysts' expectations by $0.02, which led to a 27.93% drop in share price to $1.29 during early trading, reflecting market concerns over the company's profitability.
- Revenue Beat: Despite the earnings miss, Health Catalyst's revenue of $74.8 million exceeded consensus estimates, indicating potential for revenue growth, although it failed to offset the negative impact of the earnings shortfall.
- Cautious Outlook: The company projects revenue for the upcoming quarter to be between $68 million and $70 million, with adjusted EBITDA expected to range from $7 million to $8 million; however, the lack of annual guidance adds uncertainty to market expectations.
- Strategic Review Initiated: New CEO Benjamin Albert has launched a strategic review aimed at optimizing cost structure and resource allocation, and while he did not confirm or deny the possibility of a company sale, this move underscores the company's commitment to improving transparency and operational efficiency.
See More
HEALTH CATALYST REPORTS Q4 ADJUSTED GROSS MARGIN OF 53.5% (CORRECTION: NOT 'ADJUSTED TECHNOLOGY GROSS MARGIN')
- Health Catalyst Q4 Adjusted Gross Margin: The adjusted gross margin for Health Catalyst in Q4 is reported at 53.5%.
- Clarification on Terminology: The term "not 'adj. technology gross margin'" is emphasized to clarify the specific financial metric being discussed.
See More
Health Catalyst Downgraded to Equal Weight by Wells Fargo Amid Revenue Concerns
- Rating Downgrade: Wells Fargo downgraded Health Catalyst (HCAT) from Overweight to Equal Weight and slashed its price target from $5 to $1, reflecting a pessimistic outlook on the company's future performance, with revenue and margin pressures expected to persist through 2027.
- Financial Outlook: In its March 12 earnings report, Health Catalyst projected first-quarter 2026 total revenue between $68 million and $70 million, with Adjusted EBITDA expected between $7 million and $8 million, indicating management's cautious stance on short-term performance.
- Strategic Adjustments: Under CEO Ben Albert's leadership, the company is focusing on improving long-term execution and addressing operational flaws, although the lack of a clear short-term solution suggests ongoing challenges, with management aiming to lay the groundwork for future success.
- Market Competition: While Health Catalyst is viewed as a potential investment, analysts note that certain AI stocks offer greater upside potential and carry less downside risk, indicating that market interest in HCAT may be waning.
See More
Health Catalyst Shares Drop After Wells Fargo Downgrade
- Downgrade Impact: Wells Fargo downgraded Health Catalyst's stock from Overweight to Equal Weight and slashed its price target from $5.00 to $1.00, reflecting concerns about structural issues that may persist even after the company's replatforming efforts.
- Mixed Financial Results: While Health Catalyst's Q4 2025 revenue exceeded expectations, its earnings per share of $0.08 fell short of forecasts, and the company provided a weak revenue outlook for Q1 2026, projecting a decline.
- High Volatility: Health Catalyst's shares have experienced 48 moves greater than 5% over the past year, with today's 4.2% drop indicating that the market considers this news significant but not fundamentally altering its perception of the business.
- Poor Long-term Returns: The stock has declined 49.3% year-to-date, trading at $1.16 per share, which is 74.9% below its 52-week high of $4.60 from March 2025, meaning that an investment of $1,000 five years ago would now be worth only $24.77.
See More
Health Catalyst Shares Drop Amid Downgrade
- Stock Price Decline: Health Catalyst (HCAT) shares fell for the fifth consecutive day on Wednesday after Wells Fargo downgraded its rating from Overweight to Equal Weight, reflecting market concerns about the company's future performance.
- Earnings Report Disappointment: Under new CEO Benjamin Albert, HCAT's Q4 2025 earnings report revealed a revenue decline and earnings miss, leading to a 26% drop in share price on Friday, indicating investor disappointment with the company's performance.
- Client Retention Risks: Analyst Stan Berenshteyn noted that HCAT faces near-term challenges related to reduced dollar retention as existing clients downsize their consumption, which could exert ongoing pressure on the company's revenue and margins, likely extending into 2027.
- Need for Strategic Adjustments: The Wells Fargo analyst stated that unless the new leadership demonstrates an improving track record or credible strategic changes, a neutral rating will be maintained, highlighting market uncertainty regarding HCAT's future development.
See More
Health Catalyst (HCAT) Q4 2025 Earnings Transcript
See More
Health Catalyst Shares Plunge 31% After Mixed Q4 Results
- Disappointing Earnings: Health Catalyst reported earnings of $0.08 per share for Q4, missing analysts' expectations by $0.02, which led to a 27.93% drop in share price to $1.29 during early trading, reflecting market concerns over the company's profitability.
- Revenue Beat: Despite the earnings miss, Health Catalyst's revenue of $74.8 million exceeded consensus estimates, indicating potential for revenue growth, although it failed to offset the negative impact of the earnings shortfall.
- Cautious Outlook: The company projects revenue for the upcoming quarter to be between $68 million and $70 million, with adjusted EBITDA expected to range from $7 million to $8 million; however, the lack of annual guidance adds uncertainty to market expectations.
- Strategic Review Initiated: New CEO Benjamin Albert has launched a strategic review aimed at optimizing cost structure and resource allocation, and while he did not confirm or deny the possibility of a company sale, this move underscores the company's commitment to improving transparency and operational efficiency.
See More
HEALTH CATALYST REPORTS Q4 ADJUSTED GROSS MARGIN OF 53.5% (CORRECTION: NOT 'ADJUSTED TECHNOLOGY GROSS MARGIN')
- Health Catalyst Q4 Adjusted Gross Margin: The adjusted gross margin for Health Catalyst in Q4 is reported at 53.5%.
- Clarification on Terminology: The term "not 'adj. technology gross margin'" is emphasized to clarify the specific financial metric being discussed.
See More
