Covista Raises Fiscal 2027 Outlook After Enrollment Streak

The Tip Desk · October 31, 2026 · 3 min read

First-quarter fiscal 2027 revenue reached $511.5 million, up 10.7% from a year earlier, as the healthcare educator lifted full-year revenue and adjusted EPS ranges.

Covista Inc. (CVSA), America’s largest healthcare educator, reported first-quarter fiscal 2027 revenue of $511.5 million, up 10.7% from a year earlier, accelerating from 9.7% growth in the prior quarter, and raised its fiscal 2027 revenue and adjusted earnings-per-share outlook.

Total student enrollment was 104,713, up 7.6% year-over-year, a 13th straight quarter of growth after 8.4% growth in the prior quarter. Chairman and Chief Executive Officer Steve Beard said the company launched Purpose at Scale, a three-year strategy to train healthcare professionals at scale, and that all four pillars of the plan were contributing to momentum.

GAAP net income was $67.4 million, or $1.95 a share, compared with $61.8 million, or $1.67 a share, a year earlier. Adjusted earnings were $2.19 a share, up 25.1% from $1.75. Adjusted EBITDA was $131.2 million, with an adjusted EBITDA margin of 25.6% versus 24.2% a year earlier. Operating income was $98.0 million, compared with $85.5 million.

Walden University was the largest contributor. Revenue at the online university was $216.7 million, up 14.1% year-over-year. Total students were 58,881, up 12.8%, the highest enrollment in the university’s history, and the 13th straight quarter of total enrollment growth. Operating income was $63.6 million and adjusted EBITDA $71.9 million. The company said enrollment growth was driven by healthcare and non-healthcare programs. Walden launched four new programs in the quarter; programs introduced heading into the 2026 academic year had already enrolled more than 2,000 students.

Chamberlain University, the nursing-focused segment, generated $192.4 million of revenue, up 7.4% year-over-year. Total students were 40,351, up 1.3%, a third straight quarter of total enrollment growth, which the company attributed to pre-licensure nursing. Operating income was $26.7 million. Chamberlain opened Cincinnati and Salt Lake City campuses and said it will open a 27th campus in Nashville, expected to begin classes in January 2027. A nursing collaboration with Advocate Health began enrolling students through Chamberlain in Wisconsin, with the relationship expanding to three Chicago-area campuses.

Medical and Veterinary revenue was $102.5 million, up 10.0% year-over-year. Total students were 5,481, up 3.5%, which the company said was driven by growth in both medical and veterinary. Operating income was $22.3 million, up 33.0% from $16.7 million.

Covista raised fiscal 2027 revenue guidance to a range of $2,060 million to $2,095 million, or approximately 5.5% to 7% growth year-over-year, from a previous range of $2,050 million to $2,090 million. Adjusted earnings-per-share guidance moved to $9.00 to $9.20, or approximately 9% to 11.5% growth year-over-year, from $8.90 to $9.15.

The company repurchased $84 million of shares in the first quarter. Net leverage was 0.5x as of September 30, 2026. It repriced its $510 million Term Loan B, reducing the interest-rate margin by 25 basis points to SOFR plus 2.00%.

Chief Financial Officer Robert Phelan announced a planned retirement after nearly seven years. He will remain in the role until a successor is named, with no change in responsibilities, and will support the incoming chief financial officer through a transition. An active search is underway.