Premier stock surges after strong Q4 results and fiscal 2026 outlook

Published 19/08/2025, 16:40
© Reuters.

Investing.com -- Premier Inc . (NASDAQ:PINC) stock rose 8% after the healthcare improvement company reported fiscal fourth-quarter earnings that exceeded analyst expectations and provided a solid outlook for the upcoming fiscal year.

Premier reported fourth-quarter earnings per share of $0.46, significantly outpacing the analyst estimate of $0.34. Revenue for the quarter came in at $262.86 million, also beating the consensus estimate of $247.13 million. While this revenue figure represented a 12% decrease from the same period last year, it showed a 1% sequential increase from the third quarter.

The company’s Supply Chain Services segment, which includes administrative fees and software services, generated $170 million in revenue, down 8% YoY. Meanwhile, Performance Services revenue fell 20% YoY to $92.9 million, primarily due to lower consulting revenue and timing of license revenue.

"I’m pleased to report that we had a strong finish to the year despite the contract renewal headwinds, which are now mostly behind us. Our overall revenue and profitability for the year exceeded our expectations largely due to better-than-anticipated results in our Supply Chain Services segment," said Michael J. Alkire, Premier’s President and CEO.

Looking ahead, Premier provided fiscal 2026 guidance, projecting EPS of $1.33-$1.43, in line with the consensus estimate of $1.39. The company expects total net revenue excluding Contigo Health to be between $940 million and $1 billion, with adjusted EBITDA ranging from $230 million to $245 million.

Premier also noted that it had divested its S2S Global direct sourcing business on October 1, 2024, and continues efforts to transfer or wind down certain components of its Contigo Health business.

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