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    Does Adtalem Global Education's Earnings Surge and Sallie Mae Deal Signal a New Growth Phase for ATGE?

    Simply Wall St·08/20/2025 10:54:23
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    • Adtalem Global Education recently reported fourth quarter and full-year 2025 results, highlighting strong growth with sales reaching US$457.11 million for the quarter and US$1.79 billion for the year, along with a significant increase in net income and earnings per share year-over-year.
    • Additionally, Adtalem and Sallie Mae announced a collaborative initiative to develop alternative financing solutions for healthcare students ahead of upcoming changes to federal loan programs, reflecting proactive efforts to support student access amid a shifting regulatory landscape.
    • We'll explore how Adtalem's robust earnings performance and new financing partnership with Sallie Mae influence its investment narrative.

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    What Is Adtalem Global Education's Investment Narrative?

    To own shares of Adtalem Global Education today, you need to believe in the long-term demand for healthcare professionals and the company’s ability to adapt to regulatory shifts in student financing. The most recent earnings report reinforced a picture of steady top- and bottom-line growth, but it’s the fresh partnership with Sallie Mae that stands out. With the federal Grad PLUS loan program phasing out, this move signals Adtalem’s intention to smooth access for students, a catalyst that could maintain enrollment momentum and revenue streams over the next year. Meanwhile, the amended credit facility and extended buyback programme point to stronger financial flexibility, though they may not materially alter the investment case short term. The biggest risks now shift to execution on new loan solutions and ongoing regulatory changes, which could introduce added complexity or competitive pressures ahead.
    However, the transition away from federal lending brings fresh regulatory hurdles that cannot be ignored.

    Adtalem Global Education's shares have been on the rise but are still potentially undervalued by 37%. Find out what it's worth.

    Exploring Other Perspectives

    ATGE Community Fair Values as at Aug 2025
    ATGE Community Fair Values as at Aug 2025
    Simply Wall St Community opinions span from US$152.25 to US$205.79 across two fair value estimates for Adtalem, highlighting wide divergence. As new lending frameworks emerge, the true test will likely be adapting to rapid regulatory shifts.

    Explore 2 other fair value estimates on Adtalem Global Education - why the stock might be worth as much as 59% more than the current price!

    Build Your Own Adtalem Global Education Narrative

    Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.