Covista Surpasses FY2026 Targets and Sets FY2027 Outlook with 8–11% Adjusted EPS Growth
CVSA sits 45% above its 52-week low of $86.97.
Summary
Covista exceeded its FY2026 guidance with revenue of $1.95B and adjusted EPS of $8.25, and initiated FY2027 guidance for 5–7% revenue growth and 8–11% adjusted EPS growth.
Key Events · Earnings and Guidance · CVSA
-
FY2026 Results Exceed Guidance
Revenue rose 9.3% to $1.95B, adjusted EPS grew 23.7% to $8.25, and adjusted EBITDA increased 13.5% to $521.7M, all exceeding the company's prior financial targets.
-
FY2027 Guidance Initiated
Management expects revenue of $2.05B–$2.09B (5–7% growth) and adjusted EPS of $8.90–$9.15 (8–11% growth), reflecting confidence in continued enrollment momentum.
-
Strong Capital Allocation
The company repurchased $238M of shares and repaid $50M of Term Loan B debt during FY2026, ending the year with net leverage of just 0.5x.
-
Enrollment Growth Across All Segments
Total Q4 enrollment rose 8.4% to 99,472 students, led by Walden's 14.0% surge and Chamberlain's return to growth, marking the 12th straight quarter of overall enrollment gains.
Analysis · CVSA · Trade & Services
A strong finish to fiscal 2026 saw Covista exceed its own financial targets, with revenue climbing 9.3% to $1.95 billion and adjusted EPS surging 23.7% to $8.25. The company now embarks on its new 'Purpose at Scale' strategy with clear momentum, initiating FY2027 guidance that calls for 5–7% revenue growth and 8–11% adjusted EPS growth. Shareholder-friendly capital allocation was evident: $238 million in buybacks and $50 million in debt repayment brought net leverage down to a conservative 0.5x. The results and outlook reinforce the thesis of durable, compounding growth in healthcare education, though the stock's reaction will hinge on whether the market had already priced in the beat given the concurrent 10-K filing.
At the time of this filing, CVSA was trading at $126.50 on NYSE in the Trade & Services sector, with a market capitalization of approximately $4.2B. The 52-week trading range was $86.97 to $156.26. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.