Adtalem Q2 revenue up 12.4%, beats estimates

Overview

• Healthcare educator's Q2 revenue rose 12.4% yr/yr, beating analyst expectations

• Adjusted EPS grew 34.3% yr/yr

• Company announced new $750 mln share repurchase program

Outlook

• Adtalem maintains fiscal year 2026 revenue guidance at $1,900 mln to $1,940 mln

• Company raises fiscal year 2026 adjusted EPS guidance to $7.80-$8.00

• Adtalem to host Investor Day on February 24, 2026

Result Drivers

• ENROLLMENT GROWTH - Total student enrollment increased 6.3% YoY, marking the tenth consecutive quarter of growth, driven by Walden University's 13% enrollment rise

• WALDEN UNIVERSITY PERFORMANCE - Walden University achieved a 13% YoY increase in enrollment, contributing to a 27% revenue growth

• CHAMBERLAIN UNIVERSITY INITIATIVES - Chamberlain University continued pre-licensure BSN enrollment growth

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the miscellaneous educational service providers peer group is "buy."

• Wall Street's median 12-month price target for Adtalem Global Education Inc is $166.50, about 44.5% above its January 27 closing price of $115.22

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release: ID:nBw22rV2Sa

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.