Core Insights - The announcement of a partnership with Google aims to develop a comprehensive set of AI credentials for clinicians, addressing workforce readiness in the healthcare sector [2][3] - The first AI certification will be available in 2026, focusing on both general AI fluency and domain-specific tools for various healthcare professionals [3] - There is a critical shortage of healthcare workers, and concerns about job security due to AI advancements are affecting student interest in entering the field [4][5] Group 1: Partnership and AI Credentials - The partnership with Google will leverage AI technology to create certifications that prepare clinicians for the adoption of AI tools [2][3] - The initiative is seen as essential for ensuring that healthcare professionals are ready to utilize AI effectively, thereby enhancing the return on investments in healthcare delivery systems [3] Group 2: Workforce Dynamics and Job Security - Surveys indicate that administrative burdens are the primary drivers of burnout and dissatisfaction among clinicians, highlighting the need for tools that alleviate these pressures [5] - There is a perception that AI will complement rather than replace healthcare roles, with evidence suggesting that AI can enhance the clinician-patient relationship [6][10] - The emergence of new professions due to technological advancements is expected, allowing clinicians to focus more on patient care [10] Group 3: Educational Impact and Future Roles - The partnership with Hypocratic AI aims to develop curricula for voice-based agents that assist with non-diagnostic patient interactions, reinforcing the importance of human oversight in AI applications [9] - The narrative around job security in tech fields, such as computer science, is being reshaped as students express concerns about employability post-education [8]

Core Insights - Adtalem Global Education is partnering with Alphabet's Google Cloud to launch an artificial intelligence credential program aimed at students and healthcare professionals to utilize AI tools in clinical practice [1] Company Summary - Adtalem Global Education is focusing on enhancing educational offerings by integrating artificial intelligence into its curriculum [1] - The partnership with Google Cloud signifies a strategic move to leverage advanced technology in education [1] Industry Summary - The initiative reflects a growing trend in the education sector to incorporate AI training, particularly in healthcare [1] - This program aims to equip professionals with necessary skills to effectively use AI in clinical settings, addressing the increasing demand for technology integration in healthcare practices [1]

Core Insights - Adtalem Global Education has partnered with Google Cloud to launch a comprehensive AI credentials program tailored for healthcare professionals, addressing the urgent need for AI adoption in medical education [1][4] - The program aims to equip students and practicing clinicians with hands-on experience in AI tools, enhancing their clinical decision-making and patient care [3][6] Industry Context - Despite significant investments in AI technologies by healthcare organizations, only 28% of physicians and 36% of nurses feel adequately prepared to utilize AI effectively, highlighting a critical AI readiness gap [2] - This gap prevents healthcare systems from fully leveraging their technology investments, particularly during times of workforce shortages and capacity constraints [2] Program Details - The AI credentials program is set to launch in 2026 and will be available across all Adtalem institutions, which collectively serve over 91,000 students [4] - Coursework will cover AI applications in clinical practice, ethical considerations, patient safety protocols, and practical experience with healthcare-specific AI tools [4][6] Strategic Goals - The partnership aims to position Adtalem as the preferred clinical workforce partner for healthcare providers, combining its educational expertise with Google Cloud's AI technologies [6] - The initiative is designed to prepare healthcare professionals to use AI responsibly, thereby improving patient outcomes while maintaining a human-centered approach to care [6]

Core Viewpoint - Investors are evaluating Adtalem Global Education (ATGE) and Lincoln Educational Services Corporation (LINC) for potential undervalued stock opportunities in the Schools sector [1] Valuation Metrics - ATGE has a forward P/E ratio of 18.58, while LINC has a forward P/E of 28.49 [5] - ATGE's PEG ratio is 1.24, compared to LINC's PEG ratio of 1.90, indicating ATGE may be more favorably valued considering expected earnings growth [5] - ATGE's P/B ratio is 3.73, while LINC's P/B ratio is 3.76, suggesting similar valuations in terms of market value to book value [6] Investment Outlook - Both ATGE and LINC have a Zacks Rank of 2 (Buy), indicating a positive earnings outlook due to favorable analyst estimate revisions [3] - ATGE has a Value grade of B, while LINC has a Value grade of C, suggesting ATGE is currently the superior value option based on these metrics [6][7]

Summary of Adtalem Global Education Conference Call Company Overview - **Company**: Adtalem Global Education (NYSE: ATGE) - **Industry**: Health Care Education - **Key Focus**: Operator of nursing schools and health care-focused education facilities in the U.S. with over 90,000 students across various programs including medical, nursing, and veterinary education [4][5] Core Business Insights - **Growth Guidance**: Expected top-line growth at mid-single digits with an annual margin expansion of approximately 100 basis points [7] - **Market Demand**: Strong secular demand trends in health care, particularly in nursing, with attractive wage inflation and demand for skilled professionals [8] - **Nursing Shortage**: Acknowledgment of a persistent nursing shortage in the U.S. and the challenge of insufficient nursing educators [9][10] Challenges and Solutions - **Barriers to Growth**: Identified barriers include the scarcity of qualified nursing faculty, availability of clinical preceptors, and state-level regulations [10] - **Faculty Recruitment**: Adtalem has successfully attracted faculty by offering competitive market rates, mitigating growth challenges faced by others in the industry [11] Partnerships and Programs - **SSM Health Partnership**: Introduction of the Aspiring Nurse program, providing tuition support in exchange for clinical opportunities and employment commitments, aimed at creating a proprietary talent pipeline for health systems [15][16] - **Cost Efficiency**: The program allows health systems to reduce costs associated with nurse replacements, which can average $65,000 to $70,000 per nurse [16] Market Positioning - **Multi-Site Model**: Adtalem's ability to deliver distance learning allows it to partner with health systems across multiple locations, enhancing access to talent [20] - **Allied Health Opportunities**: Exploring potential expansion into Allied Health education, contingent on employer partnerships and market demand [22][23] Regulatory Environment - **Favorable Landscape**: Current regulatory changes are seen as favorable for proprietary higher education, with a level playing field for all institutions [25][32] - **Loan Programs**: Transitioning to private loan options with Sallie Mae to mitigate impacts from changes in federal loan programs, ensuring continued access to funding for students [24][26] Financial Performance and Strategy - **Capital Allocation**: Focus on investing in core business, share repurchase programs, and potential M&A opportunities to enhance growth [46][47] - **Operational Excellence**: The "Growth with Purpose" strategy has led to significant operational improvements and record student graduations [40][41] Market Dynamics - **Demographic Shifts**: Increasing number of non-traditional students, including older adults and immigrants, aligns with Adtalem's target market [38] - **Pricing Strategy**: Competitive pricing benchmarked against state university tuition to maintain enrollment levels [39] Future Outlook - **Value Creation**: Despite recent successes, the company believes it is still in the early stages of its growth strategy, with significant potential for future value creation [50] - **Investor Engagement**: Plans for a new Investor Day to provide deeper insights into the company's strategies and performance [50] Key Takeaways - Adtalem is positioned as a critical player in addressing the health care talent shortage through its educational programs - The company is actively pursuing partnerships and exploring new market segments while maintaining a strong focus on operational efficiency and financial health - Regulatory changes and market dynamics present both challenges and opportunities for growth in the health care education sector [49][50]

Group 1 - Adtalem Global Education Inc. (NASDAQ:ATGE) is recognized as one of the best education stocks to buy currently, with Landscape Capital Management acquiring a new stake of 31,709 shares valued at approximately $3,191,000, representing 0.09% ownership in the company [1] - The company has implemented a growth with purpose strategy that has resulted in healthy financial returns and improved student outcomes, while also adopting AI-powered learning tools and reengineering its institutional model [2] - Adtalem Global Education Inc. has demonstrated impressive market performance, with one- and three-year returns exceeding market returns by 68.84% and 199.20% respectively, supported by partnerships such as with SSM Health [3] Group 2 - Adtalem Global Education Inc. operates primarily in healthcare education, with three main segments: Chamberlain, Walden, and Medical and Veterinary, focusing on transforming lives and enabling careers [3]

Core Insights - Adtalem Global Education reported strong fiscal Q4 2025 earnings, with revenue of $457.1 million exceeding analyst expectations of $440.93 million, and adjusted EPS of $1.66 surpassing the estimate of $1.53, indicating a positive performance driven by student enrollment growth and operational efficiency [1][2] Financial Performance - Revenue (GAAP) for Q4 2025 was $457.1 million, an increase of 11.5% year-over-year from $409.9 million [2] - Adjusted EPS (Non-GAAP) reached $1.66, reflecting a 21.2% increase from $1.37 in Q4 2024 [2] - Adjusted EBITDA (Non-GAAP) was $110.2 million, up 13.2% from $97.4 million in the previous year [2] - Free Cash Flow (Non-GAAP) amounted to $283.4 million, an 18.3% increase from $239.5 million [2] Business Overview - Adtalem is a leading provider of postsecondary education in the U.S., focusing on healthcare through institutions like Chamberlain University and Walden University [3] - The company aims to meet the growing demand for healthcare professionals while ensuring regulatory compliance and financial stability [3] Enrollment and Segment Dynamics - Total enrollment increased by 10.2% year-over-year to 91,780 students, with Walden University seeing a 15.0% rise [5] - Chamberlain University reported a 5.8% increase in enrollment, reaching 38,891 students, although its adjusted operating margin decreased from 24.2% to 19.4% [6] - The Medical and Veterinary segment experienced a 1.0% enrollment growth, with revenue up 4.7%, but faced capacity constraints [7] Operational Focus - The company is investing in technology and digital tools to enhance student engagement and retention, particularly at Walden University [10] - Chamberlain University launched a new brand campaign and expanded partnerships to increase nursing graduates [10] Regulatory Compliance - Regulatory compliance is a key focus, with constructive interactions with the U.S. Department of Education and no concerns regarding student aid funding [13] - Walden's Doctor of Social Work program received accreditation, enhancing the institution's reputation [13] Future Guidance - For fiscal 2026, Adtalem projects revenue between $1.90 billion and $1.94 billion, and adjusted EPS of $7.60 to $7.90, indicating growth of 6.0% to 8.5% in revenue and 14.0% to 18.5% in adjusted EPS [14] - Management anticipates a moderation in top-line growth due to strong prior-year gains and plans to continue investments in technology and program development [14] Investor Considerations - Key considerations for investors include the sustainability of enrollment growth, particularly in the Medical and Veterinary segment, and the impact of ongoing investments on operating margins [15] - Regulatory changes affecting access to federal student aid could also influence future performance [15]

分组1 - Adtalem Global Education reported quarterly earnings of $1.66 per share, exceeding the Zacks Consensus Estimate of $1.51 per share, and showing an increase from $1.37 per share a year ago, resulting in an earnings surprise of +9.93% [1] - The company achieved revenues of $457.11 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.97%, and up from $409.91 million year-over-year [2] - Adtalem has consistently outperformed consensus EPS and revenue estimates over the last four quarters, indicating strong financial performance [2] 分组2 - The stock has gained approximately 31.9% since the beginning of the year, significantly outperforming the S&P 500's gain of 7.9% [3] - The company's earnings outlook is crucial for future stock performance, with current consensus EPS estimates at $1.63 for the coming quarter and $7.47 for the current fiscal year [4][7] - The Zacks Industry Rank places the Schools industry in the top 15% of over 250 Zacks industries, suggesting a favorable environment for Adtalem's stock performance [8]

Financial Data and Key Metrics Changes - Revenue reached $1,790,000,000, up 12.9% year over year [8] - Adjusted EBITDA margin expanded 190 basis points to 25.7% [8] - Adjusted earnings per share grew 33% to $6.67 [8] - Free cash flow generated was $283,000,000 [8] - Term Loan B balance reduced by $100,000,000, lowering borrowing costs by 75 basis points [8] Business Line Data and Key Metrics Changes - Chamberlain University reported fourth quarter revenue of $184,300,000, an increase of 10.3% year over year, with total student enrollment increasing 5.8% [24] - Walden University achieved fourth quarter revenue of $182,200,000, up 16.6% year over year, with total student enrollment up 15% [25] - Medical and Veterinary segment reported fourth quarter revenue of $90,600,000, an increase of 4.7% year over year, with total student enrollment up 1% [27] Market Data and Key Metrics Changes - Total enrollment grew every quarter, averaging over 10% for the year [8] - Proprietary institutions supply 17% of registered nurses entering the workforce, with graduates from for-profit bachelor's degree programs having lower unemployment rates [9][10] Company Strategy and Development Direction - The company is focused on a "growth with purpose" strategy, emphasizing sustainable growth and community impact [6][7] - Partnerships with healthcare employers, such as SSM Health, are aimed at creating direct employment pathways for students [12] - The company plans to continue investing in student-facing technologies and marketing to maximize current capacity and expand access [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence entering fiscal year 2026, expecting revenue of $1,900,000,000 to $1,940,000,000 and adjusted EPS of $7.6 to $7.90 [16][29] - The demand for career-aligned healthcare programs is expected to grow as the national workforce shortage deepens [15] Other Important Information - The company returned $211,000,000 in excess capital to shareholders through share repurchases [8] - A new $150,000,000 Board authorization for share repurchases was announced [23] Q&A Session Summary Question: Operational performance and share gain drivers - Management attributed share gains to program flexibility, commitment to student success, and strong employer relationships [33] Question: Impact of regulatory changes on student demand - Management reported no dampening in demand for programs, with confidence in alternative financing options for students [35][36] Question: Long-term growth strategies and potential challenges - Management highlighted robust demand trends in healthcare professions and ongoing discussions with providers about new program needs [41][42] Question: Marketing success and brand strategy - Management noted improved brand awareness and targeted marketing strategies as key drivers of enrollment success [53]

FY25 Performance - Adtalem's revenue reached $1,788.3 million, a 12.9% increase compared to the prior year[15] - Adjusted EBITDA margin was 25.7%, up by 190 bps from the previous year[15] - Adjusted EPS was $6.67, a 33.1% increase compared to the prior year[15] Q4 FY25 Performance - Revenue was $457.1 million, an 11.5% increase compared to the prior year[19, 20] - Adjusted EBITDA margin was 24.1%, up by 30 bps from the prior year[20] - Adjusted EPS was $1.66, a 21.2% increase compared to the prior year[20] - Total enrollment grew by 10.2% year-over-year[18] Enrollment Trends - Total enterprise enrollments reached 91,780, a 10.2% increase year-over-year[33] - Chamberlain's enrollment increased by 5.8% year-over-year[31] - Walden's enrollment increased by 15.0% year-over-year[31] - Medical & Veterinary enrollments increased by 1.0% year-over-year[31] Financial Position - Free Cash Flow was $283 million, up $44 million compared to the prior year[17] - The company returned $211 million in capital to shareholders through share repurchases[17] FY26 Guidance - Revenue is projected to be between $1,900 million and $1,940 million, representing a year-over-year growth of approximately 6.0% to 8.5%[53] - Adjusted EPS is projected to be between $7.60 and $7.90, representing a year-over-year growth of approximately 14.0% to 18.5%[53]