The raised full-year EPS guidance is the primary catalyst. Monitor the upcoming Q2 report for confirmation of enrollment trends and margin trajectory. The stock should re-rate upward given the improved earnings power and strong balance sheet.
Price Chart
Executive Summary
PRDO reported Q1 2026 GAAP EPS of $0.85 (slightly above $0.84 consensus) and revenue of $221.7M (above $218.4M consensus, +4.1% YoY). Operating income surged 22% to $63.1M and margins expanded significantly. The company raised its full-year 2026 EPS guidance to $2.86-$2.97, implying 18-23% growth over FY2025, signaling continued operational momentum.
Key Financial Metrics
Key Facts
- Q1 2026 GAAP EPS $0.85 vs $0.65 YoY (+30.8%) and vs $0.84 consensus (beat by 1.2%)
- Revenue $221.7M vs $213.0M YoY (+4.1%) and vs $218.4M consensus (beat by 1.5%)
- Operating income $63.1M, +22.0% YoY; operating margin expanded to 28.5% from 24.3%
- Total student enrollments +1.1% YoY to 48,740; CTU +1.9%, USAHS +3.1%, AIUS -2.2%
- Raised FY2026 EPS guidance to $2.86-$2.97 (up from $2.42 actual FY2025); Q2 2026 EPS guided $0.74-$0.75
- Operating cash flow $69.4M vs $65.1M YoY; declared quarterly dividend $0.15/share
- Balance sheet strong with $680.0M in cash/short-term investments and no debt
Financial Impact
Q1 EPS beat of $0.01 (1.2%) and revenue beat of $3.3M (1.5%) are modest, but the raised FY2026 EPS guidance by $0.44-$0.55 versus prior base is a material catalyst, implying ~20% EPS growth.
Risk Factors
- Regulatory risk from DOE Title IV compliance and potential changes in federal student aid
- Student enrollment growth slowing at AIUS and overall 1.1% growth is modest
- Dependence on Grad Plus loan program; management assumes alternative private lending availability
- Share buybacks and dividends may not be sustainable if fundamentals deteriorate
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-211824 |
| Document: prdo-20260507.htm | 0001193125-26-211824 |
| Document: 0001193125-26-211824-index-headers.html | 0001193125-26-211824 |
| Document: 0001193125-26-211824-index.html | 0001193125-26-211824 |
| Document: 0001193125-26-211824.txt | 0001193125-26-211824 |
| 8-K Data (Synthetic) | 0001193125-26-211824 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 14, 2026 6w ago | 8-K | $33.06 $33.73 | ▲ +2.03% | ▼ −0.24% | $32.71 (−1.06%) |
Aug 6, 2026 11w ago | 8-K | $33.85 $33.20 | ▼ −1.92% | ▼ −1.52% | $32.71 (−3.37%) |
May 27, 2026 21w ago | 8-K | $33.09 $33.33 | ▲ +0.73% | ▲ +3.87% | $32.71 (−1.15%) |
May 12, 2026 24w ago | Insider Cluster | $35.12 $35.22 | ▲ +0.28% | ▲ +2.01% | $32.71 (−6.86%) |
May 7, 2026 24w ago | 8-K | $36.04 $34.27 | ▼ −4.91% | ▼ −4.93% | $32.71 (−9.24%) |
Mar 18, 2026 31w ago | Insider Cluster | $34.28 $35.47 | ▼ −3.47% | ▲ +2.58% | $32.71 (+4.58%) |
Mar 13, 2026 32w ago | Insider Cluster | $34.67 $35.03 | ▼ −1.04% | ▲ +2.76% | $32.71 (+5.65%) |
US Market Status
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