CHICAGO--(BUSINESS WIRE)--Adtalem Global Education (NYSE: ATGE) First Quarter Fiscal Year 2026 Results; Maintains Fiscal Year 2026 Guidance. ...

Financial Performance - Adtalem Global Education Inc. announced its first quarter fiscal 2026 results on October 30, 2025[5]. - The company reported a revenue increase of 12% year-over-year, reaching $300 million for the quarter[5]. - The operating income for the quarter was reported at $50 million, representing a 15% increase compared to the previous year[5]. - Adtalem expects revenue growth to continue, projecting a range of $1.2 billion to $1.3 billion for fiscal 2026[7]. Enrollment and Student Engagement - Enrollment numbers grew by 8%, with a total of 45,000 students enrolled across all programs[5]. - Adtalem's strategic focus includes enhancing student support services, aiming for a 20% improvement in student satisfaction scores[5]. Investment and Expansion - The company is investing $10 million in new technology to enhance online learning platforms[5]. - Adtalem plans to expand its market presence by opening two new campuses in the Midwest region by the end of 2026[5]. - The company is exploring potential acquisitions to diversify its educational offerings and increase market share[5]. Long-term Strategy - The company remains committed to its long-term growth strategy, emphasizing innovation and market expansion[7].

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]