Perdoceo Education (PRDO) Stock Forecast & Price Target

Perdoceo Education Corp has demonstrated strong growth, with total student enrollment at American InterContinental University (AIUS) increasing by 7.1% to 10,600 students, which now constitutes 23% of the company's overall enrollment. The company's segment operating income rose by 7.9%, reaching $46.3 million with a margin of 39.2%, fueled by higher revenue across its segments and an improved operating performance. Additionally, the company reported a significant increase in free cash flow, which rose by 26.8% to $178.8 million in the first nine months of the fiscal year, reflecting robust financial health and operational efficiency.

Perdoceo Education Corp has reported a decrease in segment operating income by 6.5% to $12.1 million, reflecting a decline in margin from 24.1% to 22.1%, primarily due to a non-recurring expense benefit recognized in the previous year. Additionally, enrollment at the American InterContinental University System saw a 2.9% decline, and revenues from the segment, which accounts for 26.8% of total sales, fell by 1.2% to $56.7 million, exacerbated by a reduced number of enrollment days linked to the academic calendar. Although management's guidance for operating income in Q3/25 exceeds prior estimates, the underlying declines in revenue and enrollment across key segments underscore a challenging operational landscape that contributes to a negative outlook on the stock.