Did Adtalem beat earnings in Q2 FY2026?

Yes. Adtalem reported revenue of $503.4M (up 12.4% YoY) and adjusted EPS of $2.43 (up 34.3% YoY), exceeding expectations. Management raised full-year EPS guidance to $7.80-$8.00.

What is driving Adtalem's enrollment growth?

Walden University achieved its 10th consecutive quarter of enrollment growth, with total students up 13% YoY to 52,435—the highest in university history. Healthcare and non-healthcare programs both contributed.

Did Adtalem raise guidance?

Adtalem raised FY2026 adjusted EPS guidance to $7.80-$8.00 from $7.60-$7.90, representing 17-20% YoY growth. Revenue guidance was maintained at $1.90B-$1.94B.

Adtalem Global Education (ATGE)·Q2 2026 Earnings Summary

Adtalem Crushes Q2 as Walden Surges 27%; Raises Full-Year EPS Guidance

January 28, 2026 · by Fintool AI Agent

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Adtalem Global Education delivered a standout Q2 FY2026, with revenue climbing 12.4% to $503.4M and adjusted EPS surging 34% to $2.43. The largest healthcare educator in the U.S. marked its 10th consecutive quarter of enrollment growth, reaching 97,000 students—up over 6% year-over-year. Management raised full-year EPS guidance and announced a new $750M share repurchase authorization, signaling confidence in sustained momentum.

The stock rose approximately 2.7% in after-hours trading to $119.00, from a close of $115.92.

Did Adtalem Beat Earnings?

Yes—decisively. Q2 FY2026 results exceeded expectations across all key metrics:

Metric	Q2 FY26	Q2 FY25	YoY Change
Revenue	$503.4M	$447.7M	+12.4%
Adjusted EPS	$2.43	$1.81	+34.3%
Adjusted EBITDA	$154.9M	$125.0M	+23.9%
Adjusted EBITDA Margin	30.8%	27.9%	+290 bps
Total Enrollment	97,000	~91,400	+6%+

The 290 basis point expansion in adjusted EBITDA margin reflects strong operating leverage, particularly from the high-growth Walden segment.

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What's Driving the Growth?

Walden University is the growth engine. The segment delivered its 10th straight quarter of enrollment growth, with students up 13% to 52,435—the highest in its history. Revenue surged 27% YoY to $217.6M, and adjusted EBITDA jumped 66.5% to $86.7M.

Segment Breakdown

Segment	Revenue	YoY Δ	Adj. EBITDA	Margin	YoY Δ	Students	YoY Δ
Walden	$217.6M	+27.0%	$86.7M	39.8% (+940 bps)	+66.5%	52,400	+13.0%
Chamberlain	$183.8M	+1.6%	$45.2M	24.6%	-14.0%	~40,000	-1.0%
Medical & Vet	$102.0M	+6.9%	$31.4M	30.8% (+280 bps)	+17.6%	5,297	+2.4%

Note on Walden revenue: $18M of incremental revenue shifted from Q3 to Q2 due to an academic calendar shift. Excluding this, Walden revenue would have grown 16.5% YoY.

Chamberlain mixed results: Pre-licensure BSN continues its 14th straight quarter of growth, but post-licensure nursing programs are declining. The EBITDA margin compression reflects investments and mix shift.

What Did Management Guide?

Adtalem raised EPS guidance while maintaining revenue outlook:

Metric	Prior Guide	New Guide	Change
FY26 Revenue	$1,900M-$1,940M	$1,900M-$1,940M	Maintained
FY26 Adjusted EPS	$7.60-$7.90	$7.80-$8.00	+$0.20
YoY EPS Growth	14%-18.5%	17%-20%	+300 bps

The guidance raise reflects confidence in sustained operating leverage and enrollment trends. At the midpoint, FY26 adjusted EPS of $7.90 implies 18.5% growth year-over-year.

Capital Allocation: $750M New Buyback

Management is returning capital aggressively:

Completed the $150M May 2025 buyback program on Dec 15, 2025
New authorization: $750M through December 2028
Q2 repurchases: $165M of shares
Net leverage: 0.9x as of Dec 31, 2025

The low leverage and strong free cash flow ($428M trailing twelve months, up $146M YoY) provide significant capacity for buybacks.

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How Did the Stock React?

ATGE shares closed at $115.92 on January 28, 2026, and rose to $119.00 in after-hours trading (+2.7%). The stock is:

Up 12.5% from its 50-day moving average of $103.02
Down 4% from its 200-day moving average of $120.50
Down 26% from its 52-week high of $156.26

The positive after-hours reaction reflects the guidance raise and strong Walden momentum, though the stock remains well off highs following the broader sell-off in growth stocks.

What Changed From Last Quarter?

Metric	Q1 FY26	Q2 FY26	QoQ Change
Revenue	$462.3M	$503.4M	+8.9%
Adjusted EPS	$1.74	$2.43	+39.7%
Adjusted EBITDA	$112.0M	$154.9M	+38.3%
Total Enrollment	94,629	97,010	+2.5%

The sequential improvement reflects:

Seasonal strength: Q2 is typically a stronger enrollment quarter
Walden acceleration: 13% YoY enrollment growth vs. 10%+ in prior quarters
Operating leverage: EBITDA margin expanded 600+ bps sequentially

Key Management Quotes

"This quarter marks our 10th consecutive quarter of enrollment growth. We remain on track to achieve our full-year revenue guidance of 6%-8.5% growth, and we're raising our adjusted earnings per share guidance to 17%-20% growth."

— Steve Beard, Chairman & CEO

"As America's largest healthcare educator, we're uniquely well-positioned to address substantial and growing healthcare workforce shortages at scale. Our combination of program breadth, geographic reach, and proven outcomes is unparalleled."

— Steve Beard

Strategic Highlights

AI integration: Management emphasized embedding AI-fluency into programs, positioning graduates for the evolving healthcare landscape.

New programs: Walden launched several new degree programs, with over 1,200 students already enrolled in programs including the Master in Applied Behavior Analysis and Master's Degree in Clinical Psychology. The university also introduced a PhD Completion Program designed for doctoral students who left their original programs before finishing their dissertation—providing a pathway to earn their degree with Walden.

Chamberlain expansion: The Phoenix campus added a Masters Physician Assistant Studies program. Chicago cohorts achieved a 96% PA certification exam pass rate.

BSN Online growth: Chamberlain's flexible BSN Online program has grown to 4,200+ students across 38 states with 79 clinical partners since launching 4 years ago.

Upcoming Catalyst

Investor Day: February 24, 2026 — Management will provide deeper strategic context and potentially longer-term financial targets.

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Q&A Highlights

On Walden's growth drivers: CEO Steve Beard noted growth is "consistent across the board" but most pronounced in behavioral sciences and nursing MSN programs. The education programs and undergraduate enrollments are also gaining traction.

On loan cap changes (July 2026): Adtalem is partnering with Sallie Mae for supplemental lending to address expected changes to federal loan caps. Beard confirmed they're "working on definitive documentation" and Sallie Mae is "pulling together the syndicate of capital sources." This is particularly important for the Medical & Veterinary segment.

On Chamberlain recovery timing: Management identified two execution gaps—marketing effectiveness and enrollment funnel conversion—and made personnel changes to address them. Applications are up double digits for both pre-licensure and post-licensure nursing programs. The critical inflection point is the fall enrollment cycle, the largest of the fiscal year.

On upside to guidance: When asked about scenarios to exceed guidance, Beard pointed to "a quicker than anticipated return to form at Chamberlain" and "additional acceleration in the trajectory of the MedVet segment." Walden is already operating at "optimal clip."

The Bottom Line

Adtalem delivered a strong beat-and-raise quarter driven by Walden's accelerating momentum. With the largest healthcare educator thesis intact, net leverage under 1x, and a new $750M buyback authorization, capital returns should continue. The key watch item is whether Chamberlain's post-licensure trends stabilize—early signs are encouraging with double-digit application growth. The Sallie Mae partnership addresses a key regulatory overhang ahead of July loan cap changes. The Feb 24 Investor Day may provide more clarity on the multi-year growth algorithm.