By Siddhi Mahatole and Christy Santhosh
(Reuters) -HCA Healthcare lifted its yearly profit and revenue forecasts on Friday as it expects sustained demand for medical procedures to cushion the hit from the Trump administration’s tariff policies, sending its shares up 4% before the bell.
Hospital operators are expected to benefit from higher utilization this year as patients covered by Obamacare individual insurance plans make use of their benefits ahead of expected changes in 2026.
Some COVID-19-era subsidies under individual Affordable Care Act (Obamacare) plans are due to lapse in 2026, which would lead patients to accelerate elective procedures, preventive care visits and diagnostic services while their insurance is still affordable.
The hospital-chain operator said its forecasts include a hit from trade policies, including tariffs, and do not factor in potential future revenue from state Medicaid programs that might approve additional directed payments or supplemental funding.
Leerink Partners analyst Whit Mayo said HCA’s forecast “probably looks pretty conservative” despite expectations of benefiting from state-directed payment programs.
HCA said last quarter it could not determine how changes to insurance plans under Medicaid – for low-income groups – and Obamacare would impact 2026 earnings.
Analysts have said investors are watching for early signals of HCA’s 2026 plans, especially how Obamacare exchange usage might affect patient volumes and the insurance mix.
The company expects 2025 adjusted profit per share to be between $27 and $28, compared with its previous forecast of $25.50 to $27 per share.
HCA now expects annual revenue in the range of $75 billion to $76.5 billion, compared to the $74 billion to $76 billion it forecast earlier.
It earned adjusted profit of $6.96 per share for the third quarter, compared with analysts’ estimate of $5.72 per share, according to data compiled by LSEG.
(Reporting by Siddhi Mahatole and Christy Santhosh in Bengaluru; Editing by Pooja Desai)
