Bright Horizons Guides 2026 Revenue Below Estimates, Shares Drop 19%
Bright Horizons shares plunged 19.3% after issuing full-year 2026 guidance projecting revenue of $3.075B to $3.125B and adjusted EPS of $4.90 to $5.10, both below analyst expectations. The drop overshadowed a fourth-quarter beat on revenue and adjusted earnings, leaving shares down 34.7% year-to-date and 51% below their 52-week high.
1. Fourth-Quarter Results
Bright Horizons reported fourth-quarter adjusted earnings per share and revenue above analyst expectations, reflecting continued demand across its early education and backup care divisions.
2. Full-Year 2026 Guidance
The company forecast 2026 revenue between $3.075 billion and $3.125 billion with adjusted EPS of $4.90 to $5.10, both midpoints below street estimates and indicating potential margin pressures.
3. Market Reaction and Valuation
Shares tumbled 19.3% on the guidance miss, extending a 34.7% year-to-date decline and placing the stock roughly 51% below its 52-week high of $131.50, as investors reassess growth prospects.