Adtalem Global Education announced that it will accelerate the buy‑back of shares from the market using the remaining $136 million of a $150 million share‑repurchase program that was authorized in May 2025. The acceleration follows the completion of a prior $300 million program in May 2025, bringing the company’s total capital returned to shareholders since 2022 to $763 million and reducing shares outstanding by 28%.
In its most recent quarter, Adtalem reported revenue of $462.3 million, up 10.8 percent year‑over‑year, and an adjusted earnings‑per‑share of $1.75, beating consensus estimates of $1.57 by $0.18 (an 11.5 percent beat). The revenue growth was driven by a 12 percent increase in enrollment at Walden University and a 9 percent rise in tuition and fees, while cost control initiatives kept operating expenses in line with revenue growth, allowing the company to expand its adjusted operating margin from 22.5 percent to 24.0 percent.
Segment analysis shows that Walden University continued to outperform, with enrollment growth and higher‑margin professional programs offsetting a modest margin compression at Chamberlain University, where marketing challenges and execution issues in post‑licensure programs have pressured operating margins. Despite the headwinds at Chamberlain, the overall margin expansion reflects Adtalem’s pricing power in high‑growth health‑care education markets and disciplined cost management across its portfolio.
Adtalem raised its fiscal‑year 2026 guidance, now projecting revenue of $1.90 billion to $1.94 billion and adjusted earnings per share of $7.60 to $7.90. The upward revision signals management’s confidence in sustained demand for health‑care education, the company’s ability to generate excess cash, and the expectation that the accelerated repurchase will further enhance shareholder value.
Management emphasized that the accelerated buy‑back is a strategic use of capital that underscores confidence in the company’s long‑term outlook. CEO Steve Beard noted that “current market prices present an attractive use of capital” and that the company remains focused on delivering strong results while investing in growth initiatives. CFO Bob Phelan added that Adtalem has substantial financial capacity and flexibility to continue returning capital to shareholders while simultaneously investing in its institutions and maintaining a strong balance sheet.
Analysts have adjusted their outlooks in light of the company’s strong quarterly performance and the accelerated repurchase. While some analysts highlighted the operational challenges at Chamberlain University, they remain positive about Adtalem’s overall trajectory and its ability to generate cash flow to support future share buy‑backs and growth investments.
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