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PI

Premier, Inc. (PINC)·Q1 2026 Earnings Summary

Executive Summary

  • Q1 FY2026 results: total net revenue $240.0M (-3% YoY), GAAP diluted EPS $0.21, adjusted EPS $0.30, adjusted EBITDA $55.0M; Performance Services weakened while Supply Chain Services was flat YoY .
  • Against Wall Street consensus: revenue was a slight miss ($240.0M vs $240.9M), while adjusted EPS and EBITDA were beats ($0.30 vs $0.27; $55.0M vs $47.6M) as lower share count and Supply Chain resilience supported profitability (values from S&P Global; see table) .
  • Guidance withdrawn due to the pending acquisition by Patient Square Capital; Premier also suspended future common dividends, and did not host a conference call for Q1 .
  • Near-term narrative: fee-share headwinds continue; advisory momentum noted in prior calls, but Q1 saw lower license revenue in Performance Services; capital return plans paused as M&A progresses .

What Went Well and What Went Wrong

What Went Well

  • Supply Chain Services net revenue was roughly flat YoY ($152.1M vs $151.4M) with software licenses/other up 5%, reflecting continued co‑management engagements and digital supply chain expansion .
  • Adjusted EPS of $0.30 and adjusted EBITDA of $55.0M outperformed consensus, supported by operating discipline and a lower diluted share count vs prior year .
  • Liquidity actions maintained flexibility: Credit Facility outstanding remained at $280.0M; operating cash flow positive ($15.9M) despite headwinds .

What Went Wrong

  • Performance Services revenue declined 9% YoY (lower license revenue), with segment adjusted EBITDA down 29% .
  • Free cash flow was negative (-$14.0M) due to typical Q1 seasonality and payments (OMNIA, capex), a reversal from $16.2M in prior-year quarter .
  • GAAP net income fell sharply YoY ($15.3M vs $72.9M) due largely to the prior-year non-operating derivative lawsuit gain of $57.0M not repeating .

Financial Results

MetricQ3 FY2025Q4 FY2025Q1 FY2026
Revenue ($USD Millions)$261.4 $262.9 $240.0
GAAP Diluted EPS (Cont. Ops)$0.32 $0.22 $0.21
Adjusted EPS$0.44 $0.43 $0.30
Adjusted EBITDA ($USD Millions)$71.7 $68.9 $55.0
Net Income from Continuing Ops ($USD Millions)$27.6 $18.0 $15.3

Segment breakdown (Q1 FY2026):

Segment/LineQ1 FY2026
Net administrative fees$132.4M
Software licenses, other services & support$19.7M
Total Supply Chain Services$152.1M
Performance Services$87.9M
Total Net Revenue$240.0M
Net Revenue excluding Contigo Health$234.7M

KPIs (Q1 FY2026 vs prior-year quarter):

KPIQ1 FY2026Q1 FY2025 (YoY reference)
Cash & equivalents$43.4M $87.0M
Operating cash flow (cont. ops)$15.9M $80.0M
Free cash flow (non‑GAAP)-$14.0M $16.2M

Versus Wall Street consensus (S&P Global):

MetricQ1 FY2026 ConsensusActual Q1 FY2026Beat/Miss
Revenue ($USD)$240,868,980*$240,004,000 Miss
Primary EPS$0.27224*$0.30 Beat
EBITDA ($USD)$47,620,130*$55,000,000 Beat

Values retrieved from S&P Global.*

Guidance Changes

MetricPeriodPrevious Guidance (as of Aug 19, 2025)Current (Nov 4, 2025)Change
Total Net Revenue excl. Contigo HealthFY2026$940M–$1,000M Withdrawn Lowered (withdrawn)
Supply Chain Services revenueFY2026$590M–$620M Withdrawn Lowered (withdrawn)
Performance Services excl. ContigoFY2026$350M–$380M Withdrawn Lowered (withdrawn)
Adjusted EBITDAFY2026$230M–$245M Withdrawn Lowered (withdrawn)
Adjusted EPSFY2026$1.33–$1.43 Withdrawn Lowered (withdrawn)
Q1 FY2026 revenueQ1 FY2026$230M–$245M Actual $240.0M Met range
Q1 FY2026 adjusted EBITDAQ1 FY2026$45M–$50M Actual $55.0M Above
Q1 FY2026 adjusted EPSQ1 FY2026$0.27–$0.32 Actual $0.30 In range
DividendForwardQuarterly dividend program active in FY2025 Suspended going forward Suspended

Earnings Call Themes & Trends

Note: Premier did not host a Q1 FY2026 earnings call due to the pending acquisition .

TopicQ3 FY2025 (May 6)Q4 FY2025 (Aug 19)Q1 FY2026 (Nov 4)Trend
AI/technology initiativesEpic partnership for documentation/coding; tech‑enabled performance improvement IllumiCare acquired; point‑of‑care insights; AI/machine learning synergy with Stanson No call; press release focused on operations Building platform breadth; continued integration
Supply chain & fee shareFee share reset progressing; low‑60% FY2025, stabilizing in high‑60% longer‑term Expect mid‑60% in FY2026; stabilization by end FY2026 Supply Chain Services net revenue flat YoY; software & services +5% Headwind persists near‑term; operational resilience
Tariffs/macroActive mitigation; member‑led contracting; no material disruptions; dynamic monitoring No significant pull‑forward; stability via contracting Not discussed on call; operations steady Ongoing monitoring; stable impact to date
Advisory/consulting performanceRebuilding sales funnel; sequential improvement Four large deals; >25% advisory growth expected in FY2026 Performance Services license revenue down; consulting growth cited YoY in narrative Advisory momentum; license variability
Regulatory/legalDerivative lawsuit settlement benefited FY2025 cash flows TRA payments completed; free cash flow headwind removed from FY2026 onward Guidance withdrawn due to pending acquisition M&A dominates near‑term
Capital deploymentASRs, buybacks; dividend maintained $800M buybacks; dividend ~$77M FY2025 Dividend suspended; focus shifts amidst M&A Capital return paused

Management Commentary

  • “Our overall revenue and profitability for the year exceeded our expectations largely due to better‑than‑anticipated results in our Supply Chain Services segment.” — CEO, Michael J. Alkire (Q4 FY2025) .
  • “Advisory services is expected to ramp… even with some of our software business declining in 2026, we’re expecting EBITDA margin expansion because of better productivity largely coming from our advisory business.” — CFO, Glenn Coleman (Q4 FY2025) .
  • “We expect fee share to increase to the mid‑60% range in fiscal year 2026 and it will stabilize in the high 60s on an annualized basis once we’ve addressed all renewals.” — CFO (Q4 FY2025) .
  • “The company is withdrawing previously issued, and is no longer providing, fiscal‑year 2026 guidance.” — Q1 FY2026 press release .
  • “Premier has suspended the declaration and distribution of common stock dividends in future quarters.” — Q1 FY2026 press release .

Q&A Highlights

(From prior earnings calls)

  • Tariffs: No significant pull‑forward; member‑led contracting process mitigates supplier price‑increase requests; stable impact observed .
  • Advisory momentum: Four large engagements closed; expected >25% growth in FY2026; milestone‑based rev‑rec leads to back‑half weighting .
  • IllumiCare acquisition: ~$8–$10M FY2026 revenue; breakeven bottom line; ~10:1 ROI for customers; synergy with Stanson .
  • Fee share cadence: Low‑60% FY2025 moving to mid‑60% in FY2026; stabilization in high‑60s after renewals complete .
  • Free cash flow: ~$100M annual TRA headwind removed starting July 2025; FY2026 conversion targeted at 70–80% of adjusted EBITDA .

Estimates Context

  • Q1 FY2026 results compared to S&P Global consensus: revenue $240.0M vs $240.9M*, adjusted EPS $0.30 vs $0.27*, and adjusted EBITDA $55.0M vs $47.6M*; EPS and EBITDA beats amid operational resilience and lower share count, with revenue near flat YoY and a slight miss versus consensus .
  • With FY2026 guidance withdrawn and dividend suspended, consensus is likely to re‑anchor around execution trends and M&A timeline; near‑term estimate dispersion may widen for Performance Services given license variability .

Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Q1 delivered profitability beats (adjusted EPS, EBITDA) despite a modest revenue miss; Supply Chain stability and share count dynamics supported EPS .
  • Guidance withdrawal and dividend suspension concentrate the narrative on M&A completion with Patient Square Capital; lack of a call reduces near‑term qualitative visibility .
  • Fee share headwinds persist into FY2026; stabilization expected post renewals (as outlined in prior calls), suggesting margin pressure near‑term but improving visibility by FY2027 .
  • Advisory pipeline remains a medium‑term growth lever; milestone rev‑rec implies back‑half weighting and potential margin expansion offsetting software license variability .
  • Cash generation seasonality evident in Q1; OMNIA payments and capex weighed on free cash flow; liquidity remains adequate with $280M drawn on revolver .
  • Trading implication: Near‑term moves likely tied to deal progress and any regulatory updates; operational beats vs consensus offer some support, but absent guidance and dividend may cap upside until M&A clarity improves .