Adtalem Global Education Inc (NYSE:ATGE) reported financial results for its second quarter of fiscal year 2026, delivering a performance that surpassed analyst expectations on both the top and bottom lines. The company, which operates as the largest healthcare educator in the United States, also raised its full-year earnings guidance, signaling confidence in its ongoing operational momentum.
Quarterly Performance Versus Estimates
For the quarter ended December 31, 2025, Adtalem posted revenue of $503.4 million, marking a 12.4% increase compared to the same period last year. This figure came in ahead of the analyst consensus estimate of approximately $498.5 million. The strength was broad-based, driven by significant growth in the company's Walden University segment.
On the profitability front, the company's adjusted earnings per share (EPS) of $2.43 substantially exceeded the Wall Street forecast of $2.23 per share. This represents a 34% year-over-year increase from the $1.81 adjusted EPS reported in the prior-year quarter.
Key financial highlights from the quarter include:
- Revenue: $503.4 million (vs. estimate of ~$498.5 million)
- Adjusted EPS: $2.43 (vs. estimate of $2.23)
- Adjusted EBITDA: $154.9 million, with a margin expanding to 30.8% from 27.9%
- Total Enrollment: 97,000 students, a 6.3% year-over-year increase
Market Reaction and Price Action
Following the earnings release, Adtalem's stock saw positive after-hours movement, indicating investor approval of the results and the raised outlook. This initial reaction suggests the market views the earnings beat and guidance increase as meaningful catalysts. The stock's performance over the past month had already been positive, and the post-earnings bump aligns with a narrative of sustained execution.
Updated Fiscal 2026 Outlook
Management provided an updated forecast for the full fiscal year 2026. While revenue guidance was maintained in a range of $1.90 billion to $1.94 billion (approximately 6% to 8.5% growth), the company raised its adjusted EPS guidance. The new range is $7.80 to $8.00, up from the previous forecast of $7.60 to $7.90. This implies expected annual growth of 17% to 20%.
This updated earnings outlook appears favorable when considered against the broader analyst estimates for the company's fiscal year.
Segment Breakdown and Operational Highlights
The earnings report revealed a tale of two segments. Walden University was the standout performer, with revenue soaring 27% year-over-year to $217.6 million, driven by a 13% increase in total students. In contrast, the flagship Chamberlain University segment saw relatively flat revenue and a 1% dip in enrollment, though it noted growth in its pre-licensure nursing programs.
Operationally, the company emphasized its tenth consecutive quarter of enrollment growth and its focus on addressing healthcare workforce gaps. Initiatives highlighted included the expansion of online nursing and physician assistant programs, the launch of new degree offerings at Walden, and a $165 million return of capital to shareholders through share repurchases.
Conclusion
Adtalem Global Education's second-quarter results demonstrate an organization capitalizing on strong demand in the healthcare education sector. Beating revenue and profit estimates, coupled with an upward revision to full-year earnings guidance, paints a picture of robust financial health and effective management execution. The positive after-market stock reaction reflects investor confidence in this trajectory. The company's performance will be closely watched as it continues to execute on its strategy as the nation's largest healthcare educator.
For a detailed look at Adtalem's historical earnings and future analyst estimates, visit the earnings and estimates page on Chartmill.
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