Perdoceo Education

Perdoceo Education has signed a definitive agreement to acquire South University Savannah. The cash purchase price is about $130–140 million plus $18 million of deferred payments over 24 months and earn-outs of up to $56 million upon meeting EBITDA targets for 2027–2029, for a total maximum value of $214 million. South University operates 11 campuses, reported unaudited 2025 revenue of about $291 million and is accredited through 2034. The transaction is expected to close no earlier than April 2027, will be financed with cash and is expected to be immediately accretive to adjusted operating income from 2027; Perdoceo reaffirms its 2026 guidance. » More on de.investing.com

Perdoceo reported Q2 2026 earnings per share of $0.75 (expectation $0.71) and revenue of $213.4 million, slightly above estimates. Net income rose to $48 million; adjusted EPS was $0.80. The board raised the quarterly dividend from $0.15 to $0.17 and affirmed the full-year outlook with adjusted EPS of $3.10–$3.16. The stock traded modestly higher after-hours and management pointed to strong operating leverage, cost control and further investments in student acquisition and technology. » More on de.investing.com

Perdoceo Education’s stock climbed to a 52-week high of $38.04 and is currently trading at $38.09, up nearly 30% year-to-date and with a one-year return of 52.73%. InvestingPro still rates the stock below its fair value and highlights a high gross profit margin of 79.55%. The company announced a new share repurchase program of up to $100 million, replacing a prior $75 million program; about 2.5 million shares were previously repurchased at an average price of $29.80. The board also approved the “2026 Annual Incentive Plan” for executives, which ties 80% to the development of adjusted operating income and 20% to individual targets. » More on de.investing.com