Grand Canyon Education reported third quarter 2026 service revenue of $267.3 million, missing the analyst estimate of $270.11 million, while adjusted diluted EPS of $1.77 was in line with expectations. The revenue results were impacted by a $7.5 million shift into the fourth quarter caused by a later start to the fall semester, alongside a transition to a new Master Services Agreement with its largest partner, Grand Canyon University, which now excludes ancillary fee revenue.
Key Highlights
- Total university partner enrollments reached 145,270, a 5.2% year-over-year increase driven primarily by online and hybrid program momentum.
- Accelerated Bachelor of Science in Nursing (ABSN) enrollments at off-campus sites grew 12.6% to 7,780 students, significantly outpacing the 5.1% growth seen at GCU.
- The Board of Directors approved a $355.0 million increase to the share repurchase program, leaving $394.5 million available for future buybacks as of November 2, 2026.
- Operating margin for the quarter was 19.3%, or 20.5% on an adjusted basis, compared to 22.3% in the prior year period as the company navigates shifts in student mix and tuition rates.