Adtalem's record growth fuels $750M buyback and raised profit outlook
Adtalem Global Education (ATGE) has reported strong financial results for its latest quarter. The company saw double-digit growth in both revenue and earnings, with student numbers also reaching record levels. Shareholders benefited from a major buyback programme as the firm raised its full-year profit outlook.
Revenue climbed 12.4% to $503.4 million, with all business segments contributing to the rise. An $18 million boost came from a calendar shift at Walden University, helping push total enrolments up by over 6% to 97,000 students. This marked an 8.0% increase year-on-year, driven largely by growth in the healthcare division, including Chamberlain University.
Walden's segment revenue surged 27% to $217.6 million, with enrolments jumping 13% to 52,400—the highest figure recorded. Meanwhile, the Medical and Veterinary segment saw revenue grow 6.9% to $102 million, while its adjusted EBITDA rose 17.6% to $31.4 million.
Adjusted net income reached $87.9 million, up 26.7%, thanks to higher operating income and lower interest costs, though taxes partially offset gains. Adjusted EBITDA increased 23.9% to $154.9 million, with margins expanding by 290 basis points to 30.8%. Adjusted earnings per share (EPS) also rose sharply by 34.3% to $2.43, supported by improved profitability and share repurchases.
The company repurchased $165 million worth of shares in the quarter, buying back 1.7 million at an average price of $95. This completed an earlier authorisation, while a new $750 million buyback plan was launched, leaving $728 million available.
Adtalem has raised its full-year adjusted EPS guidance to $7.80–$8.00, representing growth of 17%–20%. The results reflect strong demand across its education segments, particularly in healthcare, alongside disciplined capital management. Investors have responded positively to the company's performance and updated financial targets.
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