The GEO Group (NYSE:GEO) surged nearly 20% on Wednesday after the company reported first-quarter results ahead of Wall Street expectations and raised its financial outlook for full-year 2026.
The company posted adjusted earnings per share of $0.29, beating analyst forecasts of $0.19 by $0.10.
Revenue increased to $705.2 million during the quarter, exceeding consensus estimates of $691.11 million and rising 17% from $604.6 million in the same period last year.
Profitability improves sharply on new contract growth
Net income attributable to GEO operations climbed 96% year over year to $38.3 million, or $0.29 per diluted share.
That compares with $19.6 million, or $0.14 per diluted share, in the first quarter of 2025.
Adjusted EBITDA rose 32% to $131.4 million from $99.8 million a year earlier.
The company said results benefited from strong revenue growth tied to contracts secured throughout 2025, while operating costs were helped by lower-than-expected labor expenses.
Company raises 2026 outlook
GEO Group increased its full-year 2026 guidance and now expects net income attributable to GEO operations between $153 million and $166 million.
The company forecast diluted earnings per share in a range of $1.15 to $1.25 on projected revenue of $2.95 billion to $3.10 billion.
The midpoint of the EPS guidance range aligns with Wall Street expectations of $1.20 per share, while the midpoint of revenue guidance — $3.025 billion — came in above analyst consensus estimates of $2.97 billion.
GEO also projected full-year adjusted EBITDA between $525 million and $545 million.
Management highlights momentum from recent expansion
“We are very pleased with our first quarter results and improved full year outlook,” said George Zoley, chairman and chief executive officer of GEO.
“Our strong performance has been driven by the new growth opportunities we captured in 2025 and are normalizing in 2026.”
Share repurchases continue
During the quarter, GEO repurchased approximately 3.6 million shares for $50 million under its existing $500 million buyback authorization.
The company said roughly $359 million remains available for future share repurchases.