ATGE Stock Forecast & Price Target

Adtalem Global Education Inc. has demonstrated robust financial growth, with Adjusted EBITDA increasing 29.5% to $61.9 million, reflecting a strong margin expansion of 300 basis points year-over-year. The company's three segments—Chamberlain, Walden, and Medical & Veterinary—have collectively reported significant revenue increases, with Walden achieving a 17.6% growth to $190.0 million, driven by enhanced enrollment and tuition rates. Furthermore, management forecasts revenue for FY/26 in the range of $1.900-1.940 billion, representing a 7.4% increase at the midpoint, underscoring a positive outlook for the company’s financial performance moving forward.

Adtalem Global Education Inc is facing a challenging financial outlook, primarily indicated by stagnant year-over-year revenue expectations and a sequential decline of 1% on a reported basis. The company's Adjusted EBITDA has experienced a decrease of 5.1%, reflecting operational inefficiencies, particularly in marketing and enrollment efforts during a key intake period. Furthermore, despite a decrease in diluted weighted average shares outstanding due to share repurchases, the inability to convert inquiry volume at historical rates raises concerns about the company's growth prospects across its market segments.