Phreesia (PHR) Is Down 19.9% After Profit Turnaround And Higher Revenue Outlook - Has The Bull Case Changed?

• In the past quarter, Phreesia, Inc. reported third-quarter fiscal 2026 results showing revenue of US$120.33 million and net income of US$4.27 million, a shift from a loss a year earlier, while also raising its fiscal 2026 revenue outlook to US$479 million–US$481 million and issuing initial fiscal 2027 revenue guidance of US$545 million–US$559 million.
• The move from a loss to a profit, combined with revenue contributions from the recent AccessOne acquisition embedded in the updated outlook, highlights how Phreesia is beginning to translate its healthcare software and payments platform scale into earnings.
• Now we’ll examine how Phreesia’s profit turnaround and updated multi-year revenue outlook affect the company’s existing investment narrative.

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Phreesia Investment Narrative Recap

To own Phreesia, you need to believe its patient intake and payments platform can keep adding modules, lifting revenue per client and margins without being boxed out by larger, integrated healthcare IT rivals. The profit swing in the latest quarter supports that thesis but the sharp share price reaction to slightly softer full year guidance underlines how sensitive the near term story is to execution and revenue growth, while ongoing competitive and regulatory pressures remain key risks.

The most relevant update here is Phreesia’s tighter fiscal 2026 revenue outlook of US$479 million to US$481 million, which folds in US$7.5 million from the AccessOne acquisition. This makes it easier to see how management expects to layer acquired payments revenue onto the existing software base, an important piece of the bull case that its expanding modules and payments capabilities can drive higher recurring revenue and operating leverage over time.

But against that improving profitability, investors should still pay attention to the risk that integrated EHR players and shifting provider IT budgets could...

Read the full narrative on Phreesia (it's free!)

Phreesia's narrative projects $611.2 million revenue and $52.6 million earnings by 2028. This requires 12.0% yearly revenue growth and a $95.3 million earnings increase from -$42.7 million today.

Uncover how Phreesia's forecasts yield a $32.12 fair value, a 98% upside to its current price.

Exploring Other Perspectives

One member of the Simply Wall St Community currently estimates Phreesia’s fair value at US$32.12, highlighting how individual views can differ from market pricing. You may want to weigh that against the company’s recent move into profitability and tightened revenue guidance, which together focus attention on whether it can sustain client growth and pricing power over the next few years.

Explore another fair value estimate on Phreesia - why the stock might be worth as much as 98% more than the current price!

Build Your Own Phreesia Narrative

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

• A great starting point for your Phreesia research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Phreesia research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Phreesia's overall financial health at a glance.

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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.

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