Adtalem Global Education Second Quarter Fiscal Year 2026 Results; Raises Fiscal Year 2026 Adjusted Earnings Per Share Guidance

Core Insights - Adtalem Global Education reported strong second quarter results for fiscal year 2026, with total enrollment increasing by 6.3% year-over-year and revenue rising by 12.4% year-over-year [1][2] - The company raised its adjusted earnings per share guidance for fiscal year 2026 to a range of $7.80 to $8.00, reflecting a growth of approximately 17% to 20% year-over-year [1][3] Financial Highlights - Total revenue for the second quarter was $503.4 million, up from $447.7 million in the prior year, marking a 12.4% increase [2][3] - Diluted earnings per share were reported at $2.11, with adjusted earnings per share at $2.43, representing a growth of 34.3% year-over-year [1][2] - Adjusted EBITDA for the quarter was $154.9 million, a 23.9% increase from $125.0 million in the previous year, with an adjusted EBITDA margin of 30.8% [1][3] Enrollment and Program Growth - Total student enrollment reached 97,010, achieving the tenth consecutive quarter of growth [1][2] - Chamberlain University reported its fourteenth straight quarter of pre-licensure BSN total enrollment growth, while Walden University achieved its tenth consecutive quarter of total enrollment growth, increasing by 13.0% year-over-year [1][3] Capital Allocation - The company repurchased $165 million of shares in the second quarter and announced a new $750 million share repurchase program authorized by the Board through December 2028 [1][2] - As of December 31, 2025, net leverage stood at 0.9x [1][3] Segment Performance - Chamberlain University reported revenue of $183.8 million, a slight increase of 1.6% year-over-year, while operating income decreased by 24.2% [2][3] - Walden University saw a significant revenue increase of 27.0% to $217.6 million, with operating income rising by 53.8% [2][3] - Medical and Veterinary segment revenue increased by 6.9% to $102.0 million, with operating income up by 14.6% [2][3] Future Outlook - Adtalem maintained its revenue guidance for fiscal year 2026, projecting revenue between $1,900 million and $1,940 million, which represents a growth of approximately 6% to 8.5% year-over-year [1][3] - The company is set to host an Investor Day on February 24, 2026, to discuss its strategic direction and growth initiatives [1][2]