Adtalem Shares Plunge Despite Record Quarterly Performance

Adtalem Global Education experienced a dramatic single-day decline, with its stock price collapsing by more than 30% during Friday's trading session. The severe drop saw shares fall from $141.77 to $96.47, creating a stark contrast to the company's recently reported financial results that actually surpassed market expectations.

The education provider delivered robust quarterly figures that exceeded analyst projections. Adjusted earnings per share surged 35.7% to reach $1.75, substantially higher than the $1.57 consensus estimate. Revenue climbed 10.8% to $462.3 million, while student enrollment grew for the ninth consecutive quarter, advancing 8% to 97,000 learners. The Walden University and Medical and Veterinary segments demonstrated particularly strong performance.

Chamberlain Segment Challenges Trigger Selloff

Market reaction turned sharply negative due to emerging difficulties within the company's Chamberlain University division. While the segment posted 6.7% revenue growth, enrollment increases slowed significantly to just 2.2% compared to 5.8% in the previous quarter. Company management attributed this deceleration to "execution challenges" affecting marketing initiatives and student enrollment processes. In response, Adtalem has implemented leadership changes at Chamberlain and announced plans for operational improvements.

Should investors sell immediately? Or is it worth buying Adtalem Global Education?

Maintained Outlook Amidst Institutional Confidence

Despite these segment-specific issues, Adtalem reaffirmed its full-year guidance, projecting revenue between $1.9 billion and $1.94 billion alongside adjusted earnings per share of $7.60 to $7.90. Financial institutions have responded with measured adjustments; BMO Capital Markets reduced its price target from $172 to $158 while maintaining an "Outperform" rating. Similarly, Barrington Research confirmed its "Outperform" recommendation with a $170 price objective.

Looking ahead, the company's scheduled Investor Day in February 2026 may provide crucial insights into Adtalem's strategic direction. Market observers will be watching closely to determine whether the operational enhancements at Chamberlain yield positive results and if the partnership with Google Cloud delivers the anticipated growth momentum.