Bright Horizons beats Q1 adjusted EPS expectations, reaffirms 2026 guidance

Bright Horizons Family Solutions

05/05/2026 22:03

Overview

US early education and child care provider's Q1 revenue rose 7% but slightly missed analyst expectations

Adjusted EPS for Q1 rose 6% and beat analyst expectations

Company repurchased 2.9 mln shares for $225 mln in Q1

Outlook

Bright Horizons reaffirms 2026 financial guidance initially provided on Feb. 12, 2026

Bright Horizons sees 2026 revenue between $3.075 bln and $3.125 bln

Company expects 2026 diluted adjusted EPS between $4.90 and $5.10

Result Drivers

TUITION INCREASES - Co said Q1 revenue growth was primarily due to higher tuition rates at its centers

BACK-UP CARE GROWTH - Co reported 12% revenue growth in Back-Up Care segment, marking sixteenth consecutive qtr of double-digit growth

HIGHER TAX AND INTEREST EXPENSE - Net income declined due to a higher effective tax rate and increased interest expense

Company press release: ID:nBw6h87wga

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Slight Miss*
$712.22 mln
$713.43 mln (7 Analysts)
Q1 Adjusted EPS
Beat
$0.82
$0.80 (9 Analysts)
Q1 EPS
$0.62
Q1 Net Income
$34.11 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the personal services peer group is "buy"

Wall Street's median 12-month price target for Bright Horizons Family Solutions Inc is $99.00, about 22.4% above its May 4 closing price of $80.88

The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 18 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)