HCAT Stock Forecast & Price Target

Health Catalyst Inc has demonstrated a solid upward trajectory in earnings power over the past seven years, as evidenced by increasing EBITDA, a growing client base, and a reduction in headcount. Additionally, the positive feedback from hospital executives regarding their purchasing intentions indicates strong market demand for Health Catalyst's analytics modules, suggesting robust revenue potential in the coming periods. As the acute care market recovers from previous economic pressures, the anticipated rise in demand for CCSI's solutions and services adds to the favorable outlook for the company.

Health Catalyst Inc. is experiencing a slowdown in total revenue growth, raising concerns about its future capacity to generate significant revenue and EBITDA growth as the total addressable market appears highly penetrated. Despite a modest revenue and EBITDA beat in the third quarter, the guidance for 2026 suggests potential revenue declines of 2-3% year-over-year, attributed to factors such as clients migrating to lower-cost platforms and challenges in the hospital buying environment. Additionally, a decline in net dollar-based retention, combined with pressure on margins in both the Technology and Professional Services segments, reinforces a negative outlook for the company's financial performance in the near term.