Premier (PINC) Stock Forecast & Price Target

Premier Inc. showcased a robust performance with fourth-quarter net administrative fee revenue of $150.1 million, surpassing consensus expectations of $136.3 million, reflecting an annual growth rate exceeding 3% driven by contract penetration and the addition of new members. Furthermore, the company anticipates substantial growth in its $68.2 million business segment, forecasted to increase by 25% or more year-over-year in fiscal year 2026. The positive outlook is further underpinned by a raised price target following an adjustment in expected EBITDA, indicating confidence in Premier's financial trajectory and efficient operational management.

The financial outlook for Premier Inc. indicates potential revenue growth but also raises concerns about profitability, with FY26 reported revenue anticipated to exceed guidance by approximately $9.0 million while projected adjusted EBITDA is expected to fall short by around $6.0 million. Notably, F4Q performance services revenue of $92.9 million was significantly below both consensus expectations of $96.9 million and the midpoint of the company's implied guidance, reflecting a shortfall of $10.1 million. Furthermore, when excluding Contigo Health, adjusted EBITDA for FY25 demonstrated a substantial decline of $135.8 million year-over-year, highlighting underlying challenges within the company’s financial performance.