Covista Unveils 'Purpose at Scale' at Investor Day, Targets Double-Digit EPS Growth Through FY29
February 24, 2026 · by Fintool Agent
Covista (NYSE: CVSA), America's largest healthcare educator, unveiled its three-year "Purpose at Scale" growth strategy at today's Investor Day, targeting 10-14% adjusted EPS CAGR through fiscal 2029 as it doubles down on the U.S. healthcare workforce crisis.
The company—which officially began trading under its new name and ticker today after rebranding from Adtalem Global Education—reaffirmed fiscal 2026 guidance of $1.9-1.94 billion in revenue and $7.80-$8.00 in adjusted EPS, representing 6-8.5% and 17-20% year-over-year growth, respectively.
Shares rose 2% to $98.54 in trading, though the stock remains well below its 52-week high of $156.26 reached last summer.
"Over the past three years, we delivered what we promised: record enrollment, margin expansion and consistent execution," said Steve Beard, Chairman and CEO. "These results stand as a testament to our fundamental transformation from a diversified education company into essential infrastructure for America's healthcare workforce pipeline."
The FY29 Targets: Growth With Expanding Margins
Covista's Purpose at Scale strategy outlines a path to substantial growth across all key metrics by fiscal 2029 :
| Metric | FY26 (Guidance) | FY27 Growth | FY28 Growth | FY29 Growth | FY29 Target |
|---|---|---|---|---|---|
| Revenue | $1.92B | +6% to +8% | +7% to +10% | +8% to +11% | $2.35B-$2.53B |
| Adj. EPS | $7.90 | +9% to +13% | +10% to +14% | +12% to +16% | $10.60-$11.80 |
| Adj. EBITDA Margin | 27% | Flat to +50 bps | +50 to +100 bps | +75 to +100 bps | Expanding |
| Enrollment | 97,000 | Growing | Growing | Growing | >120,000 |
The financial framework assumes accelerating growth rates as investments in capacity expansion—particularly Chamberlain's new campuses—begin generating returns. Margin expansion is expected to accelerate in FY28-29 as early investments become profit-generating.
Ask Fintool AI AgentTrack Record: Delivering 2x on 2023 Promises
Management emphasized credibility earned from exceeding its June 2023 Investor Day targets by a wide margin :
Revenue Performance:
- 2023 Target: +$175M to +$275M incremental revenue by FY26
- Achieved: +$495M incremental (mid-point of FY26 guidance vs. FY23 base of $1,425M)
- Result: Nearly 2x the target
Earnings Per Share:
- 2023 Target: $5.16 to $5.97 adjusted EPS by FY26
- Achieved: $7.90 mid-point guidance
- Result: $2/share above the high end
The company has generated strong financial returns over the period:
| Metric | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|
| Revenue | $1.45B | $1.58B | $1.79B |
| Net Income | $93M | $137M | $237M |
| Cash from Operations | $192M | $296M | $338M |
| Adj. EBITDA | $343M | $378M | $460M |
| Adj. EBITDA Margin | 23.7% | 23.8% | 25.7% |
The Healthcare Workforce Crisis: Structural Tailwinds
Covista positioned itself as indispensable infrastructure addressing a structural crisis in American healthcare. Management cited several demand drivers :
- 84 million Americans will be 65+ by 2050—nearly 2x the 2012 level
- 47 states face primary care physician shortages by 2037
- 1 in 5 healthcare workers left their organization in 2023
- 88% of nurses worry about patient safety due to staffing shortages
- 46 years is the median nurse age, with 25% planning to leave or retire within 5 years
"The gap between workforce demand and available talent requires immediate, transformative action and increased collaboration between educators, employers and policymakers," said Megan Noel, Chief Corporate Affairs Officer.
Institution-Level Strategies
Chamberlain University: The Campus Expansion Play
Chamberlain, the nation's largest nursing school with 39,300 enrolled students, represents Covista's highest-conviction growth bet.
Current Position:
- #1 in pre-licensure and post-licensure nursing nationwide
- ~9% total U.S. nursing market share (+130 bps since 2019)
- 74,000 graduates in the last 5 years
Expansion Plan: Chamberlain will open 10-15 new campuses by FY29, targeting markets with acute nursing shortages . The unit economics are compelling:
| Campus Metric | Target |
|---|---|
| Student capacity | 450-500 |
| Capital investment | $9-12M |
| Time to profitability | <24 months |
| Mature EBITDA margin | >30% |
| Enrollment at maturity | 75% capacity |
Four new locations are already in development. Each campus complements Chamberlain's BSN Online program, which has expanded to 38 states with 4,200+ students and 80+ clinical hubs.
FY29 Enrollment Target: >49,000 (up from 39,300)
Walden University: Graduate Leadership + Undergrad Expansion
Walden has delivered 10 straight quarters of year-over-year enrollment growth, reaching 52,400 students—up from 38,000 in Q2 FY23.
Competitive Position:
- #1 in Masters of Social Work (U.S.)
- #2 in Masters in Nursing
- Named a Carnegie Opportunity Institution (top 16% for access + outcomes)
The growth strategy centers on two vectors:
-
Extend graduate leadership in market-aligned healthcare programs—counseling jobs growing +17%, nurse practitioner openings +40% through 2034
-
Expand undergraduate share targeting the 40 million Americans with some college credits but no credential. Online undergraduate enrollment has grown from ~11% of the market in 2012 to ~24% in 2024.
FY29 Enrollment Target: >65,000 (up from 52,400)
Medical & Veterinary: Physician Pipeline at Scale
The Med/Vet segment includes Ross University School of Medicine, American University of the Caribbean School of Medicine, and Ross University School of Veterinary Medicine. Combined, they enroll 5,300 students.
Key statistics:
- 2x more MDs than any MD-granting school in the U.S.
- 96% first-time residency attainment rate (RUSM)
- 89% NAVLE pass rate for veterinary students (vs. 89% U.S. average)
- #1 provider of DVMs to the U.S.
- 40% of AUC & RUSM graduates' residencies are in medically underserved areas
The physician shortage is structural: ~30,000 qualified MD school applicants are not accepted annually due to capacity constraints, with the applicant-to-seat ratio at 2.4x.
FY29 Enrollment Target: >6,000
Ask Fintool AI AgentAI: Not a Side Project, an Enterprise Strategy
Covista dedicated significant Investor Day airtime to its AI initiatives, positioning technology as a core growth enabler rather than an efficiency play.
"Covista is uniquely positioned to seize this opportunity and drive transformative change," said Michael Betz, Chief Digital Officer and President of Walden University. The company highlighted three strategic AI priorities:
AI Already Driving Results
| Application | Metric | Impact |
|---|---|---|
| Enrollment conversion | Contact rate increase | +25% |
| Enrollment support | Questions answered by AI | 7,000+ (6s avg response) |
| Marketing throughput | Campaign capacity | 4x increase |
| Email effectiveness | Open rates & response | 3x improvement |
| Persistence intervention | Student retention | +36% (3.2x ROI) |
| AI tutoring (Coach Ally) | Student adoption | 50% (1.5M responses) |
Strategic AI Partnerships
Covista announced partnerships with Google Cloud, Hippocratic AI, and HelloAI to advance its AI capabilities.
What's Next
- AI-Powered Digital Classroom – Adaptive learning built natively into the LMS
- End-to-End Student Companion – Always-on AI navigator with persistent memory
- AI-Powered Workforce & Operations – Training 10,000+ colleagues to become AI-fluent
"73% of healthcare leaders say clinicians need to know how to use AI," Betz noted. "The next generation of clinicians must be tech-fluent from day one."
Capital Allocation: Fortress Balance Sheet + Returns
Covista's financial position provides flexibility for both organic investment and capital returns:
| Metric | Value |
|---|---|
| Net Leverage Ratio | 0.9x (Q2 FY26) |
| Debt Reduction Since Q1 FY22 | $1.1B |
| Share Repurchases Since Q3 FY22 | $936M |
| Average Repurchase Price | $54/share |
| Cash Conversion Ratio | >100% |
| Operating Cash Flow (FY25 1H TTM) | $428M |
The capital allocation framework prioritizes:
- Self-funded innovation for organic growth
- Value-centric share repurchase (buying back stock at ~$54 average vs. current $98 price)
- Fortress balance sheet maintenance
- Accretive M&A when opportunities align with healthcare education purpose
Management noted that M&A optionality could enhance shareholder returns beyond the stated financial targets.
Ask Fintool AI AgentValuation Context
At $98.54 per share, Covista trades at:
| Metric | Value |
|---|---|
| Market Cap | $3.6B |
| P/E (FY26E at $7.94) | 12.4x |
| P/E (FY27E at $9.26) | 10.6x |
| Price/Target Price Consensus | 0.57x ($172.50 target)* |
*Values retrieved from S&P Global
The stock's decline from its 52-week high of $156 to under $100 creates a disconnect with the company's execution and forward guidance. Wall Street's $172.50 consensus target implies 75% upside.
What to Watch
Near-term catalysts:
- Q3 FY26 earnings (early May) – First quarter under new CVSA ticker
- New campus announcements – Four Chamberlain locations in development
- FY27 guidance – Formal outlook expected with Q4 FY26 results
Risks:
- Regulatory scrutiny of for-profit education (though 85-90% of healthcare executives say for-profit vs. non-profit "makes no difference" in hiring)
- Student loan policy changes affecting enrollment
- Execution risk on 10-15 campus buildout
- Competition from traditional universities expanding online
Key metrics to track:
- Quarterly enrollment by institution
- Chamberlain new campus timelines and ramp
- AI adoption metrics (persistence, enrollment conversion)
- Margin trajectory (100+ bps annual expansion targeted)
Bottom Line
Covista delivered on its 2023 promises and is doubling down with Purpose at Scale. The 10-14% EPS CAGR targets through FY29 are supported by structural demand (healthcare workforce crisis), proven execution (2x prior targets), expanding capacity (15 new Chamberlain campuses), and AI-driven efficiency gains.
At 12x forward earnings with a $172 consensus target, the market appears skeptical. Management's track record suggests that skepticism may be mispriced—but investors will want to see early campus economics and sustained enrollment momentum to validate the multi-year thesis.
The ticker change to CVSA marks more than rebranding. It signals a company that has completed its transformation from diversified education to focused healthcare workforce infrastructure, now positioning for its next growth phase.