Adtalem (NYSE:ATGE) Reports Q4 CY2025 Revenue Surpassing Expectations

Adtalem Global Education Surpasses Q4 2025 Revenue Forecasts

Adtalem Global Education (NYSE:ATGE), a leader in vocational education, delivered strong results for the fourth quarter of calendar year 2025, exceeding market expectations. The company posted $503.4 million in revenue, marking a 12.4% increase compared to the same period last year. For the full year, Adtalem anticipates revenue to reach approximately $1.92 billion, closely aligning with analyst predictions. Adjusted earnings per share (non-GAAP) came in at $2.43, surpassing consensus estimates by 11.1%.

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Highlights from Adtalem’s Q4 2025 Performance

• Revenue: $503.4 million, beating analyst expectations of $490.6 million (12.4% year-over-year growth, 2.6% above forecast)
• Adjusted EPS: $2.43, exceeding the $2.19 estimate (11.1% above expectations)
• Adjusted EBITDA: $87.91 million, below the $138.3 million estimate (17.5% margin, 36.5% shortfall)
• Full-Year Revenue Guidance: Maintained at $1.92 billion (midpoint)
• Full-Year Adjusted EPS Guidance: Raised to $7.90 (midpoint), a 1.9% increase
• Operating Margin: 22.1%, consistent with the prior year’s quarter
• Free Cash Flow: $15.12 million, a significant improvement from -$29.7 million a year ago
• Market Cap: $4.02 billion

“As the nation’s largest educator in healthcare, we are uniquely equipped to help address the growing shortage in the healthcare workforce. Our tenth straight quarter of enrollment growth—up 6.3% to 97,000 students—shows our commitment to meeting this challenge,” stated Steve Beard, Adtalem’s Chairman and CEO.

About Adtalem Global Education

Previously operating as DeVry Education Group, Adtalem Global Education (NYSE:ATGE) delivers workforce development solutions and educational services on a global scale.

Examining Revenue Trends

Assessing a company’s long-term revenue trajectory offers valuable perspective on its overall quality. While any business can have a few strong quarters, sustained growth is a hallmark of enduring organizations. Over the past five years, Adtalem achieved a compound annual revenue growth rate of 13.9%. Although this is a respectable figure, it falls short of the higher benchmarks typically seen in the consumer discretionary sector, which often benefits from favorable industry trends.

Adtalem’s recent results indicate a slowdown in momentum, with annualized revenue growth over the last two years at 12.4%, trailing its five-year average.

This quarter, the company’s revenue rose 12.4% year-over-year to $503.4 million, outpacing Wall Street’s projections by 2.6%.

Future Revenue Outlook

Looking forward, analysts anticipate Adtalem’s revenue will grow by 4.5% over the next year, signaling a slowdown compared to recent years and suggesting potential challenges in demand for its offerings.

Technology continues to reshape industries, fueling demand for tools that support software developers—from cloud infrastructure monitoring to seamless content streaming.

Profitability and Operating Margins

Adtalem’s operating margin has remained relatively stable, averaging 19.5% over the past two years, though this is considered modest for a consumer discretionary company and reflects some inefficiencies in its cost structure.

For the latest quarter, the company reported an operating margin of 22.1%, matching last year’s performance and indicating steady cost management.

Earnings Per Share (EPS) Analysis

Monitoring long-term EPS growth helps determine if a company’s expansion is translating into profitability. Over the last five years, Adtalem’s EPS grew at a compound annual rate of 21.4%. This outpaced its revenue growth, suggesting improved profitability per share as the business scaled.

In the fourth quarter, adjusted EPS reached $2.43, up from $1.81 a year earlier, easily surpassing analyst forecasts. While we typically review consensus projections for future EPS growth, there is currently insufficient data available.

Summary of Q4 Results

Adtalem’s fourth quarter saw the company outperform analyst expectations for both revenue and EPS, though EBITDA came in below forecasts. Despite the mixed results, shares rose 3.1% to $119.54 immediately after the announcement.

Is Adtalem a compelling buy at its current valuation? While quarterly results are important, long-term fundamentals and valuation play a much larger role in investment decisions.