Covista Inc. CVSA posted better-than-expected third-quarter fiscal 2026 results, with adjusted earnings and revenues topping the Zacks Consensus Estimate and increasing year over year.
Revenue growth reflected contributions from multiple institutions and continued scale in the company’s education platform. Management framed the quarter as progress under its strategy focused on expanding access to healthcare careers and meeting persistent workforce shortages.
The company also noted that enrollment momentum held up against tougher prior-year comparisons, supported by deeper student persistence initiatives. That dynamic matters because persistence can help stabilize revenues over time as students progress through programs.
Covsita’s Q3 Highlights
Adjusted earnings were $1.98 per share, up 3.1% year over year and 14.5% above the Zacks Consensus Estimate of $1.73 per share.
The quarterly revenues of $487 million increased 4.5% year over year and came in 1.9% ahead of the consensus mark of $478 million.
Covista Inc. Price, Consensus and EPS Surprise
Covista Inc. price-consensus-eps-surprise-chart | Covista Inc. Quote
Operating momentum was underpinned by steady demand across the portfolio, with total student enrollment rising 6.8% year over year to 100,585, marking the 11th straight quarter of growth.
On profitability, adjusted EBITDA was $127.9 million, essentially flat year over year, while adjusted EBITDA margin was 26.3%, down from 27.4% a year ago. The company attributed the year-over-year margin pressure to a mix of operating efficiencies and investments, alongside calendar-related timing at Walden.
CVSA Segment Results Show Broad Strength
Chamberlain delivered revenues of $197 million, up 2.3% year over year, with total students of 40,767, up 0.5%. Adjusted operating income inched up 0.8% to $47.9 million year over year.
Walden generated revenues of $186.6 million, up 4.6%, and total students increased 12.3% to 54,474. Adjusted operating income declined 11.7% year over year to $42.4 million. Walden’s quarter included the impact of a one-week academic calendar shift that moved revenue recognition into the prior quarter, affecting the reported year-over-year comparison for that institution.
Medical and Veterinary remained the fastest-growing segment on the revenue line, producing $103.5 million, up 8.9% from the year-ago period. Total students in the segment rose 4.1% to 5,344, reflecting growth in both medical and veterinary programs. Adjusted operating income grew 20% to $21.5 million year over year.
Covista Steps Up Buybacks and Debt Actions
Capital allocation stayed active in the quarter. Covista repurchased $66 million of shares and reported $662 million remaining under its $750 million authorization, keeping buybacks a central lever in its shareholder return framework.
Management reported net leverage of 0.7x as of March 31, 2026, underscoring a conservative leverage position alongside ongoing repurchases.
Adjusted free cash flow as of the fiscal third quarter was $336.5 million, up from $287.2 million in the year-ago period.
Covista Expands Programs and Workforce Ties
Operationally, Covista highlighted expansion initiatives across institutions. Chamberlain continues to advance its campus growth plan, with two new campuses expected to start classes in the first half of fiscal 2027 after receiving full regulatory approval.
The company also emphasized steps to broaden program offerings and strengthen workforce alignment. Walden received approval for seven new programs, while Covista launched healthcare-specific AI professional certificates across its institutions, with more than 4,000 learners enrolled to date, reflecting demand for AI fluency in health professions.
CVSA Lifts Fiscal 2026 Outlook
Encouraged by execution, CVSA raised its fiscal 2026 revenue guidance to $1.93-$1.945 billion (up 8-9% year over year) from the prior $1.90-$1.94 billion (up 6-8.5% year over year) range. The updated view implies management sees sustained demand and operational follow-through as the year closes.
The company also increased adjusted EPS guidance to $7.95-$8.15 (19-22% year-over-year growth) from $7.80-$8.00 (17-20% year-over-year growth) previously. The upward revision suggests confidence that core operating momentum can offset ongoing investments and timing-related noise.
CVSA Stock's Zacks Rank & Key Schools Picks
Covista currently carries a Zacks Rank #3 (Hold).
American Public Education, Inc. APEI presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The company has a trailing four-quarter earnings surprise of 187.5%, on average. The Zacks Consensus Estimate for American Public’s 2026 sales and EPS indicates growth of 6.4% and 75%, respectively, from the year-ago period’s levels.
Strategic Education, Inc. STRA currently carries a Zacks Rank #2 (Buy). The company has a trailing four-quarter earnings surprise of 11.2%, on average.
The Zacks Consensus Estimate for Strategic Education’s 2026 sales and EPS indicates growth of 2.8% and 15.2%, respectively, from the year-ago period’s levels.
Grand Canyon Education, Inc. LOPE currently carries a Zacks Rank of 2. The company has a trailing four-quarter earnings surprise of 3.8%, on average.
The Zacks Consensus Estimate for Grand Canyon’s 2026 sales and EPS indicates growth of 6.6% and 12.6%, respectively, from the year-ago period’s levels.
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American Public Education, Inc. (APEI): Free Stock Analysis Report
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Covista Inc. (CVSA): Free Stock Analysis Report
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