ATGE Stock Forecast & Price Target

Adtalem Global Education Inc. reported a significant increase in adjusted EBITDA, rising by 29.5% to $61.9 million, reflecting a robust margin improvement of 300 basis points year-over-year. Both the Walden and Chamberlain segments demonstrated strong revenue growth, with Walden's revenue increasing by 17.6% to $190.0 million and Chamberlain's revenue rising by 6.7% to $179.2 million, largely driven by higher enrollment and tuition rates. Furthermore, the company anticipates fiscal year 2026 revenues to range between $1.900 billion and $1.940 billion, marking a year-over-year growth of 7.4% at the midpoint, coupled with a 31.5% increase in segment operating income, establishing a strong foundation for future performance.

Adtalem Global Education's stock faces a negative outlook due to stagnant revenue expectations, reporting a year-over-year flat change and a sequential decline of 1%. The company's adjusted EBITDA has decreased by 5.1% to $35.1 million, reflecting a reduced margin that is 240 basis points lower than the previous year, signifying operational challenges. Furthermore, management highlighted disappointing enrollment growth, attributed to ineffective marketing and execution failures during a crucial intake period, resulting in the inability to convert inquiry volume at historical rates.