The quarter beat the market’s immediate expectation by a meaningful margin. Adjusted EPS was $2.09 versus a published consensus of approximately $1.89, while revenue reached $501.4 million and adjusted EBITDA $126.9 million, up 9.7% and 15.2% year over year, respectively (Financial Highlights).
| Metric | Q4 FY26 | Q4 FY25 / expectation | Read |
|---|---|---|---|
| Revenue | $501.4M | $457.1M prior year | +9.7% (Financial Highlights) |
| Adjusted EPS | $2.09 | ~$1.89 published consensus | Beat (Adjusted Earnings) |
| Adjusted EBITDA | $126.9M | $110.2M prior year | +15.2% (Adjusted EBITDA) |
| FY26 revenue | $1,954.1M | $1,930M-$1,945M prior guidance | Above range (Fiscal Year 2027 Outlook / prior guidance) |
| FY26 adjusted EPS | $8.25 | $7.95-$8.15 prior guidance | Above range (Adjusted Earnings / prior guidance) |
| FY27 revenue growth | 5%-7% | 6%-8% long-term target | Below target range (Fiscal Year 2027 Outlook) |
| FY27 adjusted EPS growth | 8%-11% | 9%-13% long-term target | Below target range (Fiscal Year 2027 Outlook) |
The full-year result also cleared the company’s own raised bar. FY26 revenue of $1.954 billion exceeded the prior $1.930-$1.945 billion guidance range, and adjusted EPS of $8.25 exceeded the prior $7.95-$8.15 range (Fiscal Year 2027 Outlook; Adjusted Earnings). That is genuine incremental information rather than merely a record result, because the company had already raised its targets in May.
Growth remains uneven across the portfolio. Walden was the clear engine, with enrollment up 14.0%, revenue up 16.1%, adjusted operating income up 30.6%, and adjusted EBITDA up 29.8% for FY26 (Segment Highlights — Walden). Medical and Veterinary also delivered healthy double-digit profit growth. By contrast, Chamberlain’s FY26 revenue rose only 3.4%, while adjusted operating income fell 6.3% and adjusted EBITDA declined 3.1%; enrollment growth recovered to just 1.6% (Segment Highlights — Chamberlain). The recovery is real, but the largest segment has not yet returned to prior profitability levels.
The main offset is a softer-than-promised starting point for the next strategy cycle. FY27 guidance calls for 5%-7% revenue growth and 8%-11% adjusted EPS growth (Fiscal Year 2027 Outlook), below the 6%-8% revenue and 9%-13% adjusted EPS growth targets previously outlined for FY27. The filing does not provide a new analyst consensus for FY27, so this is best read as a shortfall versus the company’s standing long-term framework, not a confirmed consensus miss.
Balance-sheet execution adds support to the beat. Covista repurchased $238 million of shares, repaid $50 million of Term Loan B debt, generated $393.1 million of free cash flow, and ended the year at 0.5x net leverage (Fiscal Year Capital Allocation; Free Cash Flow; Net Leverage). Those actions strengthen per-share results and financial flexibility, although the lower FY27 growth framework keeps the net read from being unequivocally strong.
Read the original 8-K on SEC EDGAR ↗