Adtalem Global (ATGE) Shares Soar 17.71% on Strong Q3 Earnings, Buyback Program

Adtalem Global (ATGE) shares surged to a record high today, with an intraday gain of 17.71%.

The strategy of buying ATGE shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a 9.77% annualized gain. This suggests a relatively conservative approach, as the strategy capitalized on short-term price movements rather than aiming for high risk-adjusted returns.

Adtalem Global Education recently announced a new stock buyback program of up to $150 million, which will run through May 2028. This initiative follows the completion of a previous $300 million repurchase program, demonstrating the company's commitment to returning value to shareholders.

The company reported strong financial results for the third quarter of 2025, with revenue increasing by 12.1% and earnings per share (EPS) rising by 28%. This robust growth is largely attributed to the company's strong performance in the healthcare education sector.

Adtalem Global Education exceeded earnings expectations for the third quarter, reporting $1.92 per share, which surpassed the consensus estimate. This performance highlights the company's ability to outperform market expectations and deliver strong financial results.

In the first quarter of the calendar year 2025, Adtalem exceeded Wall Street's revenue expectations, with sales increasing by 12.9% year-over-year. This strong performance underscores the company's continued growth and market leadership.

The company has raised its full-year revenue guidance to $1.77 billion at the midpoint, representing a 1.3% increase. Additionally, Adtalem has adjusted its EPS guidance to $6.50 at the midpoint, a 4.8% increase, reflecting the company's confidence in its future financial performance.

Total enrollment in Adtalem's programs increased by 9.8% year-over-year, contributing significantly to the company's revenue growth. This increase in enrollment is a testament to the company's ability to attract and retain students, particularly in the healthcare education sector.

Adtalem's dominance in healthcare education and its strategic innovations have been key drivers of its strong financial performance. The company's focus on healthcare education, coupled with its strategic initiatives, has positioned it as a leader in the education sector, contributing to its stock price changes.