ATGE Stock Forecast & Price Target

Adtalem Global Education Inc. has demonstrated robust financial performance, highlighted by a significant 29.5% increase in adjusted EBITDA to $61.9 million, with a margin improvement of 300 basis points year-over-year. Enrollment growth, alongside higher tuition rates, has fueled revenue increases across all segments, with Walden and Chamberlain reporting respective revenue growths of 17.6% and 6.7%. Furthermore, management has provided optimistic revenue guidance for FY/26, forecasting a total between $1.900 billion and $1.940 billion, representing a midpoint increase of 7.4% from the prior fiscal year.

Adtalem Global Education Inc. has experienced stagnant revenue expectations with a year-over-year flat change and a sequential decline of 1%, which raises concerns about its overall financial health. The company's adjusted EBITDA has decreased by 5.1%, leading to an erosion of margins, as management acknowledged significant shortfalls in enrollment growth attributed to ineffective marketing strategies during a crucial intake period. Furthermore, despite a slight expected increase in adjusted EBITDA for Q3/25, the failure to convert inquiry volume at historical rates and underperformance in key markets signals potential ongoing challenges for future revenue generation.