Adtalem Global Education (NYSE:ATGE) reported fiscal second-quarter 2026 results that management said extended its streak to a 10th consecutive quarter of enrollment growth, driven by gains at Walden and continued scale across its portfolio of healthcare-focused institutions.
Quarterly performance and updated outlook
CEO Steve Beard said the company remains on track to achieve its full-year revenue growth guidance of 6% to 8.5% and raised adjusted earnings per share growth guidance to 17% to 20%.
CFO Bob Phelan provided additional detail, reporting revenue increased 12.4% to $503.4 million and consolidated adjusted EBITDA rose 23.9% to $154.9 million. Adjusted EBITDA margin expanded to 30.8%, up 290 basis points year over year. Phelan said adjusted operating income increased 24.3% to $126.1 million and adjusted net income increased 26.7% to $87.9 million, aided by lower interest expense and partially offset by a higher provision for income taxes.
Calendar shift boosted Walden’s quarter
Phelan noted the quarter included a one-week academic calendar shift at Walden from the third quarter into the second quarter, resulting in $18 million of revenue recognized in Q2 rather than Q3. Excluding that one-week shift, he said Adtalem’s revenue was up 8.4% year over year.
The company maintained full-year revenue guidance of $1.90 billion to $1.94 billion, reiterating that the calendar shift has “no net impact” on annual performance. Phelan added that the revenue outlook continues to reflect management’s prior comments that revenue growth would be higher in the first half as the company laps strong comparisons, particularly in the prior year’s third quarter.
Adtalem raised its adjusted EPS guidance to $7.80 to $8.00 from $7.60 to $7.90, with Phelan citing expectations for continued margin expansion, the impact of capital allocation actions, and strong cash flow generation. He also said the company expects its effective tax rate to be higher than fiscal 2025. Management expects quarter-to-quarter margins to fluctuate, with higher targeted investments in the third quarter and less investment in the fourth quarter, and noted the calendar shift will have a “pronounced impact” on third-quarter margin profile.
Segment highlights: Walden, Chamberlain, and MedVet
Walden: Beard said Walden delivered its 10th consecutive quarter of enrollment growth, up 13%, reaching record total enrollment of 52,400 students. He highlighted new programs such as a Master in Applied Behavior Analysis and a master’s in Clinical Psychology, and said new programs have enrolled more than 1,200 students in less than one year. He also pointed to the launch of a Walden University PhD Completion Program aimed at doctoral students who left prior programs before completing dissertations.
Phelan reported Walden revenue increased 27% to $217.6 million, and excluding the $18 million one-week shift, revenue was up 16.5%. Adjusted EBITDA rose 66.5% to $86.7 million, and adjusted EBITDA margin expanded 940 basis points to 39.8%. Excluding the one-week shift, he said Walden’s adjusted EBITDA margin expanded by roughly 400 basis points, as efficiencies outpaced increased brand and student-facing digital investments and additional student support.
During Q&A, management said Walden growth has been “consistent across the board,” with the most pronounced gains in behavioral sciences programs and nursing, particularly the MSN credential. Management also cited returns on investments in education programs and traction in undergraduate enrollment expansion.
Chamberlain: Beard said Chamberlain’s third-quarter total enrollment will remain “soft” as improvements move through the student journey, but said management views the fall enrollment cycle as a key proof point. He described the current period as a “temporary pause” rather than a reversal, after the institution added 5,600 new students over two years and grew revenue by $155 million, a 27% increase. He also cited expansion efforts including new campuses in Atlanta and Kansas City, relocation of the Phoenix campus, and growth of the online BSN program to more than 4,200 students across 38 states in four years.
Beard said the company identified two execution gaps last quarter—marketing effectiveness and enrollment funnel conversion—and moved “swiftly” to address both. He said application volumes for both pre-licensure and post-licensure nursing programs were up double digits in the second quarter. Management also described steps taken to optimize marketing spend, improve the website, streamline scholarship offerings to provide clearer net cost visibility, and increase funnel conversion through a more seamless prospective student experience.
Phelan reported Chamberlain revenue increased 1.6% to $183.8 million, driven by pricing optimization, while total student enrollment declined 1% as growth in pre-licensure was offset by declines in post-licensure programs. He said adjusted EBITDA decreased 14% to $45.2 million and margin declined to 24.6% as the company invested in bringing new capacity to market and in student support to drive enrollment growth and outcomes.
Medical and Veterinary (MedVet): Beard said the second quarter is not an enrollment period for the segment, but the company is seeing momentum in leading enrollment indicators. He said the medical schools are focused on creating innovative pathways that expand access and remove barriers to the MD program, while improving operational execution in the enrollment funnel. He also cited technology and artificial intelligence in the basic sciences curriculum, along with the capstone program, as contributing to improved USMLE Step 1 pass rates. Beard said Ross Vet is operating near capacity and has increased its NAVLE pass rate.
Phelan reported MedVet revenue increased 6.9% to $102.0 million, with no change in student enrollment versus the first quarter due to term starts. Adjusted EBITDA increased 17.6% to $31.4 million and margin rose 280 basis points to 30.8%.
Capital allocation and cash flow
Beard said Adtalem deployed $165 million to share repurchases during the quarter and had roughly $728 million remaining under its current authorization. Phelan said the company repurchased 1.7 million shares at an average price of $95, completing a prior $150 million authorization, and subsequently announced a new $750 million board authorization through December 2028, with $728 million available as of Dec. 31.
Phelan also reported trailing 12-month operating cash flow of $428 million, up $146 million versus the comparable prior-year period, attributing the increase to operational discipline and high cash conversion.
Regulatory and financing update; Investor Day ahead
In Q&A, management addressed expected changes in loan caps in July and discussed an earlier announced partnership with Sallie Mae. The company said it is working with Sallie Mae on definitive documentation and that Sallie Mae is assembling a syndicate of capital sources to provide loan dollars. Management said it remains excited about the partnership’s potential across the portfolio, particularly in the medical and veterinary segment where supplemental lending sources are expected to be used most.
Looking ahead, Beard reiterated plans for an Investor Day on Feb. 24, where the company expects to outline a multi-year growth framework, including capacity expansion plans and new revenue streams.
About Adtalem Global Education (NYSE:ATGE)
Adtalem Global Education (NYSE:ATGE) is a leading provider of postsecondary education and professional development solutions. Through a network of brands and institutions, the company delivers degree programs and continuing education in high-demand fields such as healthcare, business, technology and the sciences. Adtalem’s offerings span campus-based and online formats, catering to diverse learner needs and career stages.
The company’s portfolio includes Chamberlain University, which specializes in nursing and healthcare; Carrington College, offering career-focused programs in allied health, business and trades; Walden University, a fully online institution for graduate and undergraduate degrees; and a suite of medical and veterinary schools, including Ross University School of Medicine and Ross University School of Veterinary Medicine, both located in the Caribbean.
