Covista Raises Fiscal 2026 Guidance on Strong Healthcare Education Demand
Event summary
- Covista reported Q3 FY2026 revenue of $487.0M, up 4.5% YoY, with adjusted EBITDA margin at 26.3%.
- Total student enrollment across all segments exceeded 100,000, with Walden University seeing a 12.3% YoY increase.
- AUC and RUSM achieved a 97% first-time residency attainment rate for the 2025-2026 graduating class.
- Covista raised FY2026 revenue guidance to $1.93B-$1.945B (8-9% YoY growth) and adjusted EPS guidance to $7.95-$8.15.
- Launched healthcare-specific AI professional certificates with Google Cloud, enrolling over 4,000 learners.
The big picture
Covista's strong Q3 results reflect the urgent need for healthcare professionals in the U.S., with the company positioning itself as a key player in addressing workforce shortages. The strategic focus on AI integration and campus expansion underscores a long-term bet on tech-enabled education and scalable enrollment growth. The raised guidance signals confidence in sustaining this momentum despite competitive pressures in the higher education sector.
What we're watching
- Scaling Enrollment
- Whether Covista can sustain enrollment growth across all segments, particularly Chamberlain, amid regulatory approvals for new campuses.
- AI Integration
- How the demand for healthcare-specific AI certificates will impact student outcomes and employer partnerships.
- Residency Placement
- The pace at which AUC and RUSM can maintain high residency placement rates as healthcare workforce demands evolve.
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