Key Highlights

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

Revenue growth reaches every segment

Covista (NYSE:CVSA), which describes itself as America's largest healthcare educator, runs 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 for the period ended September 30, 2026 on October 29, 2026.

Revenue was $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 reached 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 approximately 2.6% on average. Management credited investments in student experience and flexible part-time formats.

Walden's adjusted Operating Income rose 16.0% to $65.0 million, and its adjusted operating margin was 30.0% against 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 rose approximately 3.4% on average across the listed programs.

The company noted that pre-licensure nursing enrollment increased while post-licensure nursing enrollment declined. Chamberlain's Gross Profit Margin slipped to 51.5% from 53.6% as Credit loss provisions, labor and facilities costs rose, and 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 fell. Adjusted operating income rose 32.7% to $22.3 million, and the adjusted operating margin was 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 lower diluted shares after repurchases. Adjusted Net Income rose 16.8% to $75.8 million, and adjusted diluted EPS rose 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 were $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 was $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 repurchases.