Premier, Inc. (NASDAQ:PINC) reported fourth-quarter results on Tuesday that outperformed analyst expectations. Adjusted earnings per share came in at $0.46, beating estimates by $0.12, while revenue totaled $262.9 million, above the consensus of $247.13 million.
Following the announcement, Premier’s shares rose slightly, gaining 0.25% in after-hours trading.
The healthcare improvement company saw total net revenue decline 12% year-over-year, but this was better than anticipated. Excluding Contigo Health, revenue amounted to $258 million. Adjusted EBITDA fell 34% from the prior year to $68.9 million.
“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,” said Michael J. Alkire, Premier’s President and CEO. “Our overall revenue and profitability for the year exceeded our expectations largely due to better-than-anticipated results in our Supply Chain Services segment.”
Within the company, net revenue from the Supply Chain Services segment dropped 8% to $170 million, mainly due to lower net administrative fees. The Performance Services segment saw net revenue decline 20% to $92.9 million.
Looking ahead to fiscal 2026, Premier expects adjusted earnings per share between $1.33 and $1.43, consistent with the analyst consensus of $1.39. Total net revenue, excluding Contigo Health, is projected to range from $940 million to $1 billion.
For the full year, Premier generated $180.5 million in free cash flow, exceeding expectations. The company also completed a $200 million accelerated share repurchase program and continues to return capital to shareholders through a quarterly cash dividend of $0.21 per share.
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