GET DAILY SIGNALSPerdoceo Education (PRDO) Delivers Q3 2026 Results with +1.9% Revenue Growth and +18.5% Adjusted EPS
Key Takeaways
- Perdoceo Education reported third quarter 2026 revenue of $215.9 million, up 1.9% from $211.87 million in the prior-year period.
- Adjusted earnings per diluted share (EPS) rose 18.5% to $0.77, ahead of consensus estimates.
- Operating income increased 8.1% to $55.1 million, while adjusted operating income grew 8.4% to $66.1 million.
- Total student enrollments climbed 1.6%, led by a 7.5% increase at the American InterContinental University System (AIU System) and a 3.2% gain at the University of St. Augustine for Health Sciences.
- Management issued full-year 2026 adjusted EPS guidance of $3.15 to $3.19, above the prior year's $2.61.
- The company signed a definitive agreement to acquire South University, expected to close as early as April 2027.
Earnings Context and Why It Matters
Perdoceo Education Corporation runs a group of postsecondary schools focused on working adults and health sciences graduate students, including PRDO’s Colorado Technical University, the AIU System, and the University of St. Augustine for Health Sciences. Third-quarter results provide an early read on tuition revenue trends because enrollment is the primary driver. Profitability also depends on keeping marketing and technology spending in check. The company has delivered several quarters of earnings growth, and this report showed whether that pattern could hold even after lapping strong prior-year enrollment at CTU. I’m watching the South University acquisition and the updated guidance closely, as both point to the longer-term growth path into 2027. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Reported Results
For the quarter ended September 30, 2026, revenue came in at $215.9 million, a 1.9% rise from $211.87 million a year ago. Net income reached $44.4 million, or $0.70 per diluted share, versus $39.9 million, or $0.60 per diluted share, in the same period last year. Adjusted EPS, which strips out depreciation, amortization, and certain M&A-related costs, climbed 18.5% to $0.77 and topped analyst expectations.
Operating income advanced 8.1% to $55.1 million, and adjusted operating income rose 8.4% to $66.1 million. Total enrollments increased 1.6%. The AIU System grew 7.5% to 10,830 students, with operating income up 24.9% to $11.6 million. The University of St. Augustine for Health Sciences posted revenue of $41.7 million, up 9.8%, and adjusted operating income of $11.7 million, compared with $7.2 million previously. CTU enrollments were essentially flat at 31,870 students after strong graduations and difficult year-over-year comparisons.
Fourth-quarter guidance calls for adjusted EPS of $0.68 to $0.72 and adjusted operating income between $56.9 million and $59.9 million. For the full year, management expects adjusted EPS of $3.15 to $3.19 and adjusted operating income of $260.0 million to $263.0 million.
Market Reaction and Investor Sentiment
Heading into the release, views on PRDO were measured but positive after the company beat consensus EPS estimates in seven of the prior eight quarters. The latest print extended that streak, with adjusted EPS of $0.77 clearing the bar and full-year guidance of $3.15 to $3.19 sitting comfortably above the roughly $3.13 consensus at the time. Investors focused on CTU enrollment durability, margin trends in the health sciences segment, and capital allocation plans that include buybacks, dividends, and the South University deal. The combination of enrollment gains, cash generation, and the acquisition outlook supported the longer-term growth story.
Forward Outlook and Key Factors to Monitor
Several themes stand out for the quarters ahead. Enrollment remains the clearest signal of future revenue. CTU is expected to face tough comparisons through the second half of 2026 before growth normalizes in 2027, while the AIU System may see typical fourth-quarter variability before rebounding early next year. The University of St. Augustine for Health Sciences continues to expand with new program formats, and its contribution to adjusted operating income should stay meaningful. Cost control and marketing efficiency will matter as the company balances reinvestment with elevated legal expenses at CTU. The South University acquisition, slated to close as early as April 2027 for roughly $130 million to $150 million in cash plus up to $56 million in earn-outs tied to EBITDA targets, is expected to be immediately accretive to adjusted operating income starting in 2027. These elements together will shape growth and profitability into the coming year.
Enhancing My Research Workflow
One resource I turn to regularly when reviewing earnings and sector trends is Tickeron’s AI Screener. It lets me apply technical patterns, fundamentals, and performance filters across thousands of stocks and ETFs, which helps surface comparable names and monitor shifting conditions more efficiently than manual checks. I find it especially useful for education-sector analysis like this one, where enrollment and margin data can be cross-referenced quickly with peers.
Disclaimer
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
PRDO sees MACD Histogram just turned negative
PRDO saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on October 27, 2026. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 45 instances where the indicator turned negative. In 32 of the 45 cases the stock moved lower in the days that followed. This puts the odds of a downward move at 71%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 26, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on PRDO as a result. In 54 of 84 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 64%.
PRDO moved below its 50-day moving average on October 27, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for PRDO crossed bearishly below the 50-day moving average on October 30, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 11 of 20 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 55%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where PRDO declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 63%.
Bullish Trend Analysis
The RSI Indicator shows that the ticker has stayed in the oversold zone for 3 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an Uptrend is expected.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 6 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +3.38% 3-day Advance, the price is estimated to grow further. Considering data from situations where PRDO advanced for three days, in 232 of 340 cases, the price rose further within the following month. The odds of a continued upward trend are 68%.
PRDO may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 20 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 86, placing this stock better than average.
The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is 51 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 64 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.608) is normal, around the industry mean (1.252). P/E Ratio (9.448) is within average values for comparable stocks, (9.236). Projected Growth (PEG Ratio) (0.606) is also within normal values, averaging (1.327). Dividend Yield (0.026) settles around the average of (3.575) among similar stocks. P/S Ratio (2.499) is also within normal values, averaging (27.566).
The Tickeron Price Growth Rating for this company is 70 (best 1 - 100 worst), indicating slightly worse than average price growth. PRDO’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 74 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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a company, which engages in the provision of educational services.
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