Premier (PINC) Stock Forecast & Price Target

Premier Inc. demonstrates a robust financial outlook, with F4Q net administrative fee revenue reaching $150.1 million, exceeding consensus estimates of $136.3 million, indicating strong contract penetration and membership growth. Additionally, the company's supply chain services segment, which accounts for the majority of its revenue, is projected to experience significant expansion, as the $68.2 million business is anticipated to grow by 25% or more year-over-year in FY26. Furthermore, the increased adjusted EBITDA expectations for CY26 and a decreased share count resulting from share repurchases suggest a positive evolution in shareholder value.

Premier Inc's financial projections indicate a concerning trend, with FY26 anticipated revenue of $955 million falling short of the guidance midpoint of $970 million. Additionally, although F1Q26 revenue outperformed expectations, the projected adjusted EBITDA for FY26 is forecasted at $232 million, which is below the consensus estimate of $242.3 million. Furthermore, the company's fourth-quarter performance services revenue of $92.9 million not only missed consensus expectations but also the midpoint of implied guidance by $10.1 million, indicating ongoing operational challenges.