ATGE Stock Forecast & Price Target

Adtalem Global Education Inc. has demonstrated strong financial performance, with adjusted EBITDA increasing by 29.5% to $61.9 million, reflecting a healthy margin of 32.6%, up 300 basis points year-over-year. The company anticipates a revenue growth to a range of $1.900-1.940 billion for FY/26, representing a 7.4% increase at the midpoint compared to the prior fiscal year. All three segments, particularly Walden and Chamberlain, reported revenue growth driven by increases in enrollment and tuition rates, underscoring the company’s positive trajectory amid a competitive educational landscape.

Adtalem Global Education Inc. is facing significant challenges, as evidenced by flat year-over-year revenue expectations and a sequential decline of 1% on a reported basis, indicating stagnation in financial performance. The adjusted EBITDA experienced a decrease of 5.1%, with a notable contraction in margin, reflecting execution failures in marketing and enrollment strategies, particularly during the critical September intake cycle. Additionally, the company struggled to convert inquiry volume effectively and fell short in achieving enrollment growth due to inadequate local marketing campaigns, raising concerns about its future revenue generation and operational effectiveness.