Bright Horizons Q4 revenue slightly beats estimates, helped by increased utilization of back-up care services

Bright Horizons Family Solutions

12/02/2026 21:21

Overview

Child care provider's Q4 revenue rose 9%, slightly beating analyst expectations

Adjusted EPS for Q4 beat analyst expectations

Net income for Q4 decreased due to higher tax rates and impairment costs

Outlook

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

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

Bright Horizons focuses on enhancing services and investing in technology for growth

Result Drivers

BACK-UP CARE - Increased utilization of back-up care services contributed significantly to Q4 revenue growth

IMPAIRMENT COSTS - Income from operations decreased due to $14.8 million in impairment and lease termination costs

ENROLLMENT GAINS - Enrollment growth at child care centers supported revenue increase

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Slight Beat*
$734 mln
$727.41 mln (7 Analysts)
Q4 Adjusted EPS
Beat
$1.15
$1.12 (9 Analysts)
Q4 EPS
$0.38
Q4 Net Income
$21.70 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 $127.00, about 55.6% above its February 11 closing price of $81.60

The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 22 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.)