Adtalem Global Education (ATGE) Margin Strength In Q2 2026 Reinforces Bullish Valuation Narratives

Adtalem Global Education (ATGE) just released its Q2 2026 numbers, with revenue of US$503.4 million and basic EPS of US$2.13 setting the tone for the quarter. The company has seen revenue move from US$447.7 million in Q2 2025 to US$503.4 million in Q2 2026, and basic EPS shift from US$1.86 to US$2.13 over the same period, while on a trailing twelve month basis revenue sits at about US$1.9b and basic EPS at US$7.01. Taken together, these results highlight a period where earnings power and margins are central to how investors are likely to read the story from here.

See our full analysis for Adtalem Global Education.

With the latest numbers on the table, the next step is to see how this earnings print lines up with the prevailing market and community narratives, and where the data starts to challenge those views.

Curious how numbers become stories that shape markets? Explore Community Narratives

13.4% net margin underpins US$76.1 million quarterly profit

• Net income excluding extra items came in at US$76.1 million on US$503.4 million of revenue for Q2 2026. This lines up with a trailing twelve month net income of US$254.0 million on US$1.9b of revenue and a 13.4% net profit margin versus 12.1% a year earlier.
• What stands out for a bullish view is that earnings growth has averaged 30.3% per year over five years while trailing twelve month net income is US$254.0 million, and that margin of 13.4% is higher than last year, yet
  • bulls still need to consider that one year earnings growth of 24.6% sits below the 30.3% five year pace, which suggests momentum is slower than the long run average even though profit levels are higher in absolute terms, and
  • revenue is forecast to grow about 6% per year compared with a 10.6% US market forecast. This means earnings strength is currently more about margins and efficiency than fast top line expansion.

Over this result, the key question for bullish investors is whether a 13.4% margin and US$254.0 million of trailing earnings can keep doing the heavy lifting while revenue growth expectations sit below the wider market. 📊 Read the full Adtalem Global Education Consensus Narrative.

P/E of 14.6x and US$107.78 price versus DCF fair value

• The shares trade at US$107.78 with a trailing P/E of 14.6x, compared with a peer average of about 20x and a US Consumer Services sector average of 16.8x. The quoted DCF fair value is US$227.72 and the analysts’ price target reference is US$161.50.
• Consensus narrative around valuation leans bullish because the current P/E sits below both peers and the sector and the DCF fair value of US$227.72 is materially above US$107.78, yet
  • investors weighing this have to balance that trailing earnings of US$254.0 million and EPS of US$7.01 are paired with forecast earnings growth of about 13% per year, which is slower than the 16.1% forecast for the broader US market, and
  • the cited upside to the US$161.50 analyst target and to the DCF fair value depends on those earnings forecasts being met even though revenue is only projected to grow roughly 6% per year, below the 10.6% market forecast.

US$503.4 million revenue versus 6% growth outlook

• Quarterly revenue of US$503.4 million contributes to trailing twelve month revenue of US$1.9b, with forecasts pointing to about 6% annual revenue growth and roughly 13% annual earnings growth over the coming years versus market forecasts of 10.6% revenue growth and 16.1% earnings growth.
• Critics of the bullish case often focus on these slower growth forecasts, and the data here partly supports that view because revenue growth expectations sit below the broader market even as net margin is 13.4% and five year earnings growth has averaged 30.3%,
  • so the story for now is more about maintaining a higher margin and high quality earnings on US$1.9b of revenue than about outgrowing the market on the top line, and
  • investors who are comfortable with this profile may see the combination of moderate growth, a 14.6x P/E and the US$107.78 share price as primarily an earnings power and valuation discussion rather than a high growth one.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Adtalem Global Education's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

Adtalem’s earnings rely heavily on margins and efficiency, while revenue and earnings growth forecasts sit below broader US market expectations.

If that slower outlook makes you hesitate, use our stable growth stocks screener (2171 results) to quickly focus on companies with more consistent revenue and earnings trends that may better match your goals.

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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