HCA Healthcare Inc stock surged 5.07% during intraday trading on Friday, driven by better-than-expected second-quarter results and a notable benefit from a Florida Medicaid supplemental payment program.

The company reported revenue of $20.23 billion, an 8.7% increase year-over-year and above the analyst consensus of $19.76 billion. Adjusted earnings per share came in at $7.59, beating estimates of $7.56. A key factor was a roughly $400 million incremental net benefit from Medicaid supplemental payment programs, primarily from Florida, which helped offset a similar $400 million pretax profit impact from a worsening payer mix as more patients lost insurance coverage. Management also noted that long-term patient volume growth is expected to be supported by favorable market demographics and population growth.

Despite lowering its full-year EPS guidance to a range of $28.70 to $30.50, the strong quarterly beat and the clarity on Medicaid-related benefits appeared to outweigh concerns about the guidance cut, propelling the stock higher in the session.