Geo Group Q1 revenue beats on new contracts, lifts outlook

Geo

06/05/2026 11:14

Overview

U.S. secure facilities operator's Q1 revenue rose 17% yr/yr, beating analyst expectations

Company repurchased 3.6 mln shares for $50 mln in Q1

Full-year 2026 revenue and earnings guidance raised

Outlook

Geo Group raises FY26 revenue guidance to $2.95-$3.10 bln

Company lifts FY26 net income guidance to $153-$166 mln, or $1.15-$1.25 per diluted share

Geo Group expects FY26 adjusted EBITDA of $525-$545 mln

Result Drivers

NEW CONTRACTS - Revenue growth driven by new and expanded contracts entered into throughout 2025

FACILITY ACTIVATIONS - Reactivation of previously idle facilities and new contracts for ICE detainees added to revenue

LOWER LABOR COSTS - Operating expenses benefited from lower-than-expected labor costs versus prior guidance

Company press release: ID:nBw21h5Xxa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$705.20 mln
$688.89 mln (5 Analysts)
Q1 EPS
$0.29
Q1 Adjusted Net Income
Beat
$38.60 mln
$28.19 mln (2 Analysts)
Q1 Net Income
$38.30 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

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

Wall Street's median 12-month price target for Geo Group Inc is $28.00, about 52.5% above its May 5 closing price of $18.36

The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 12 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.)