- Revenue & Profit Growth: Fiscal year revenue reached $1.79 billion (+12.9% YoY), with adjusted EBITDA margin expanding 190 bps to 25.7% and adjusted EPS rising 33% to $6.67.
- Walden University Performance: Achieved 15% enrollment growth, with adjusted EBITDA margin expanding 260 bps to 28.9%.
- Chamberlain’s Online BSN Expansion: 5.8% enrollment growth and 10.3% revenue increase driven by pre-licensure BSN program demand.
- Medical/Vet Segment Outlook: 1% enrollment growth, with AUC and Ross Med showing long-term growth potential despite current modest expansion.
- 2026 Guidance: Projects $1.9–$1.94 billion revenue and $7.60–$7.90 adjusted EPS, reflecting sustained momentum from strategic investments.
Chamberlain University: Steady Growth and Innovation Drive Results
Chamberlain University, Adtalem's largest institution, maintained a steady growth trajectory with a 5.8% increase in enrollment and a 10.3% rise in revenue. The strong performance is attributed to the continued success of its pre-licensure BSN online program, which caters to the growing demand for registered nurses.
Walden University: Expanding Reach and Program Diversity Fuel Enrollment Growth
Walden University spearheaded the company's growth, achieving a remarkable 15% enrollment increase. This impressive performance is fueled by the university's diverse program portfolio, encompassing both master's and undergraduate degrees, and its multiple intake cycles, which ensure consistent enrollment throughout the year. The adjusted EBITDA margin for Walden University expanded by 260 basis points to 28.9%, highlighting its operational efficiency and profitability.
Medical and Veterinary Segment: Building Momentum for Long-Term Growth
While the Medical and Veterinary segment experienced a 1% increase in enrollment, there are encouraging signs for long-term growth. AUC and Ross Med are demonstrating positive momentum, suggesting that the segment is poised for stronger performance in the future.
Adtalem's Strategic Outlook: Continued Investment and Growth
Adtalem's valuation metrics suggest that the market is optimistic about its future prospects. The P/E ratio of 19.48 implies that investors are willing to pay a premium for the company's earnings growth potential. The P/S ratio of 2.52 indicates that the market values Adtalem's revenue growth at a healthy level. The Free Cash Flow Yield of 6.63% suggests that the company is generating substantial cash flow, which can be used to fund future investments and return value to shareholders.