Key Highlights

  • Revenue increased 10.7% to $511.5 million from $462.3 million in the first quarter of fiscal 2027.
  • Diluted EPS rose 16.8% to $1.95, while adjusted diluted EPS climbed 25.1% to $2.19.
  • Walden total enrollment grew 12.8% to 58,881 students at September 30, 2026.
  • Adjusted Operating Margin expanded to 20.8% from 19.5% a year earlier.
  • The company repaid $163.0 million of long-term Debt and bought back $81.0 million of stock during the quarter.

Revenue growth reaches every segment

Covista (NYSE:CVSA), which calls itself America's largest healthcare educator, operates Chamberlain University, Walden University, and the medical and veterinary schools American University of the Caribbean, Ross University School of Medicine and Ross University School of Veterinary Medicine. It filed its first quarter fiscal 2027 report, covering the period ended September 30, 2026, on October 29, 2026.

Revenue came to $511.5 million, up $49.2 million, or 10.7%, from $462.3 million in the prior year period. Chamberlain contributed $192.4 million, up 7.4%, Walden $216.7 million, up 14.1%, and Medical and Veterinary $102.5 million, up 10.0%.

Walden leads on enrollment and margin

Walden's total enrollment hit 58,881 students, up 12.8% from a year earlier. The company said Revenue growth came from higher enrollment and tuition rates, with rates and fees up roughly 2.6% on average. Management credited investments in the student experience and flexible part-time formats.

Walden's adjusted Operating Income climbed 16.0% to $65.0 million, and its adjusted operating margin was 30.0%, versus 29.5% a year ago.

Chamberlain grows in pre-licensure nursing but post-licensure lags

Chamberlain enrollment rose 2.7% for the July 2026 session and 1.3% for the September 2026 session. Revenue growth reflected higher enrollment, average courseload and tuition rates, which increased roughly 3.4% on average across the listed programs.

The company noted that pre-licensure nursing enrollment rose while post-licensure nursing enrollment fell. Chamberlain's Gross Profit Margin slipped to 51.5% from 53.6% as Credit loss provisions, labor and facilities costs increased, although its adjusted operating income grew 4.4% to $26.7 million.

Medical and veterinary schools post the biggest profit gain

Enrollment at the medical and veterinary schools increased 3.5% for the September 2026 semester.

Gross profit margin improved to 47.9% from 43.3%, partly because clinical rotation costs declined. Adjusted operating income jumped 32.7% to $22.3 million, and the adjusted operating margin reached 21.7%, against 18.0%.

Earnings per share rise faster than net income

Net income increased 9.0% to $67.4 million. Diluted EPS climbed 16.8%, or $0.28, to $1.95, helped by a lower diluted share count following repurchases. Adjusted Net Income rose 16.8% to $75.8 million, and adjusted diluted EPS grew 25.1% to $2.19.

Operating income grew 14.7% to $98.0 million, with an operating margin of 19.2% compared with 18.5%. Adjusted operating income was $106.6 million, up 18.1%. Student services and administrative expense rose 9.6% to $192.6 million, driven by Marketing and growth investments.

Cash, debt reduction and Buybacks shape the balance sheet

Cash and cash equivalents were $222.2 million at September 30, 2026, down from $406.3 million at June 30, 2026. Operating Cash Flow from continuing operations was $114.3 million, compared with $130.6 million a year earlier, as payments to employees and vendors rose by $51.0 million.

Financing outflows totaled $259.6 million, including $163.0 million of debt repayments and $81.0 million of share repurchases. No borrowings were outstanding on the $500.0 million revolver, and the Term Loan B balance stood at $510.0 million. About $577.8 million remains under the $750.0 million repurchase program running through December 15, 2028. Readers may watch Chamberlain's post-licensure trend and the pace of further buybacks.