Perdoceo Education Corporation (PRDO) Earnings
Perdoceo Education Corporation is expected to report next earnings on November 3, 2026 (in NaN days), with a consensus EPS estimate of $0.74. PRDO has beaten EPS estimates in 12 of its last 12 reported quarters (average surprise +6.4% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 6, 2026 | $0.75 | $0.77 | +2.7% | $213M | +0.4% |
| May 7, 2026 | $0.84 | $0.90 | +7.1% | $222M | +1.5% |
| Feb 19, 2026 | $0.54 | $0.59 | +9.3% | $212M | +0.8% |
| Nov 4, 2025 | $0.61 | $0.65 | +6.6% | $212M | +0.9% |
| Jul 31, 2025 | $0.65 | $0.67 | +3.1% | $210M | +1.2% |
| May 1, 2025 | $0.66 | $0.70 | +6.1% | $213M | +2.4% |
| Feb 18, 2025 | $0.48 | $0.50 | +4.2% | $176M | +0.8% |
| Jul 31, 2024 | $0.58 | $0.60 | +3.4% | $167M | +3.6% |
| May 1, 2024 | $0.53 | $0.60 | +13.2% | $168M | +3.0% |
| Feb 21, 2024 | $0.23 | $0.27 | +17.4% | $148M | +1.2% |
| Nov 2, 2023 | $0.49 | $0.64 | +30.6% | $180M | +7.4% |
| Aug 3, 2023 | $0.52 | $0.61 | +17.3% | $187M | +4.0% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q2 FY2026 · August 6, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
- Overall Performance and Student Metrics • Year-to-date 2026 operating income grew 14.4% year-over-year, supported by 3% total revenue growth. Q2 2026 net income was $48 million (75 cents per diluted share), up from $41 million (62 cents per diluted share) in Q2 2025. • Total company student enrollments grew just under 1% (0.7% year-over-year, excluding Trident University and non-degree programs), with strong retention and healthy prospective student interest across most institutions. - Strategic Response to AI-Powered Search Shifts • The shift from traditional search to LLM-based AI search is changing prospective student discovery behavior, but management reports most prospective student inquiries come from channels not directly impacted by this shift, and the overall impact on enrollment has been modest to date. • The firm is increasing investment in non-impacted channels, selectively using generative AI to identify high-probability prospective students, optimizing existing content for AI search visibility, and investing in brand strengthening to maintain accessibility as search evolves. - Corporate Student Programs • Total enrollment in corporate partner degree programs at CTU and AIUS continues to grow, and this segment remains a strategic priority for the firm. The company is making targeted strategic investments in technology and personnel to support future enrollment expansion. - Capital Allocation and Shareholder Returns • On August 6, 2026, the Board of Directors authorized a 13.3% increase in the quarterly dividend from 15 cents to 17 cents per share, the third dividend increase since dividend initiation in 2023, reflecting management's commitment to growing dividends as a core component of capital allocation strategy. • Year-to-date 2026, the firm has repurchased 0.4 million shares for approximately $15 million, with $85 million remaining in the authorized repurchase program to be utilized over time based on market conditions and investment opportunities. - M&A and Acquisition Integration • The 2024 acquisition of University of St. Augustine for Health Sciences has been successfully integrated. The institution has expanded program offerings and added new flexible learning modalities, and is on track to hit 2026 revenue and adjusted operating income targets with further growth expected in 2027. • The firm has built proven acquisition and integration capabilities, and is actively evaluating complementary acquisition targets, particularly in health sciences, with strong ongoing dialogue with potential targets. Management will pursue opportunities that align with its disciplined capital allocation strategy and create long-term value. - Operational Investments • The firm maintains disciplined expense management while making purposeful investments in academics, program development, technology, and student support teams. Investments in AI tools are being deployed to improve academic outcomes and student experience across institutions.
Guidance
- Full year 2026 adjusted operating income is guided to a range of $258 million to $263 million, up from $237.6 million in 2025. This range includes the impact of incremental legal fees; excluding these costs, the guidance range would be higher. - Full year 2026 adjusted diluted earnings per share is guided to a range of $3.10 to $3.16, up from $2.61 in 2025, representing a 19.9% increase at the midpoint. - Full year 2026 total revenue is expected to increase year-over-year, driven by new program modality rollouts at University of St. Augustine for Health Sciences and continued organic growth at CTU and AIU System. University of St. Augustine is expected to deliver double-digit adjusted operating income growth for the full year 2026. - AIU System full year 2026 operating income is expected to grow year-over-year despite calendar-driven quarterly enrollment comparability volatility, supported by strong underlying retention and prospective student interest. - CTU full year 2026 growth is supported by strong prospective student interest and growing corporate programs, partially offset by a record number of 2026 graduations lapping strong prior period enrollment growth and incremental legal fees. - Q3 2026 adjusted operating income is guided to a range of $64 million to $65 million (up from $61 million in Q3 2025), and adjusted diluted earnings per share is guided to 73 cents to 74 cents (up from 65 cents in Q3 2025). - The full year 2026 effective tax rate is expected to be between 23% and 24%, and full year 2026 capital expenditures are expected to be approximately 1% of total revenue. - 2026 guidance assumes that 2025's high levels of student retention and engagement will continue, prospective student interest will hold at current levels, regulatory/legislative changes will not have a material operational impact, and legal fees will remain aligned with current expectations.
Segment performance
1. Colorado Technical University (CTU): Total student enrollments grew 0.6% year-over-year to 32,110 students, marking the 11th consecutive quarter of growth. Q2 2026 revenue rose 0.9% to $115.5 million, contributing 54.1% of total company revenue, with year-to-date revenue growth of 2.5% year-over-year. Organic operating income would have grown year-over-year excluding incremental higher legal fees from ongoing legal matters. 2. AIU System (AIUS): Total student enrollments decreased 1% year-over-year, which was expected due to lower enrollments at Trident University; excluding Trident, enrollments grew year-over-year. Q2 2026 revenue decreased 1.8% to $57.2 million, contributing 26.8% of total company revenue. Operating income increased 9.7% to $12.6 million year-over-year, with the revenue decline driven by optimization of non-Title IV and professional development offerings; organic year-to-date revenue excluding these offerings grew. 3. University of St. Augustine for Health Sciences: Total student enrollments increased 6% year-over-year to approximately 4,200 students. Q2 2026 revenue rose 10.2% to $40.5 million, contributing 19.0% of total company revenue. Adjusted operating income increased to $10.7 million from $5.5 million in the prior year quarter. 4. Corporate and other: Operating losses were $5.9 million in Q2 2026, up from $5.2 million in the prior year quarter. Company-wide total Q2 2026 revenue was $213.4 million, net income was $48 million, operating income was $54.9 million, and adjusted operating income was $64.2 million.
Risks & headwinds
- AI-powered search shifts could alter prospective student discovery behavior and reduce enrollment if the firm's optimization and channel reallocation strategies do not succeed. - Calendar-driven variability will create misleading quarter-over-quarter enrollment comparisons at AIU System through the end of 2026, even as underlying organic trends remain strong. CTU will see reported year-over-year enrollment declines in the second half of 2026 due to lapping strong prior year quarters and record 2026 graduations, before normalizing in 2027. - Incremental legal fees related to ongoing litigation at CTU are pressuring operating income and have reduced the 2026 full year guidance range relative to what it would be excluding these costs. - Changes to federal student loan programs (including elimination of the Grad Plus loan program, and new annual/lifetime graduate loan limits) could negatively impact student ability to finance education and reduce enrollments, even as management expects limited material impact from these changes. - Unexpected changes to the regulatory or legislative environment for postsecondary education could materially impact prospective student interest and require costly operational changes. - Forward-looking results are inherently uncertain and depend on multiple management assumptions that may not prove accurate, leading to material differences between actual and projected performance.