Bright Horizons Family Solutions (NYSE:BFAM – Get Free Report) posted its quarterly earnings data on Thursday. The company reported $1.28 earnings per share for the quarter, beating the consensus estimate of $1.20 by $0.08, FiscalAI reports. Bright Horizons Family Solutions had a net margin of 5.78% and a return on equity of 18.70%. The firm had revenue of $779.18 million during the quarter, compared to analysts’ expectations of $774.84 million. During the same quarter last year, the company posted $1.07 EPS. The company’s quarterly revenue was up 6.4% compared to the same quarter last year. Bright Horizons Family Solutions updated its FY 2026 guidance to 5.050-5.150 EPS.
Here are the key takeaways from Bright Horizons Family Solutions’ conference call:
- Second-quarter results exceeded expectations: Revenue increased 7% to $779 million, adjusted EPS rose 20% to $1.28, and adjusted operating margin expanded 95 basis points to 12.7%.
- Back-up Care remained the primary growth engine. Revenue grew 19% to $194 million on increased users and frequency, prompting the company to raise its full-year Back-up Care growth outlook to 13%-15%; management said the growth was broad-based rather than driven by unusual factors.
- Full-service occupancy improved sequentially to the high-60% range, or approximately 70% excluding Australia. Management sees a path toward restoring full-service margins to the historical 10% level as enrollment improves and underperforming centers are closed or optimized.
- Australia continues to weigh on the full-service business, creating roughly a 100-basis-point enrollment headwind and an estimated $20 million-$25 million annual operating loss. The company is aligning staffing, evaluating additional closures, and considering broader strategic options for the geography.
- The company narrowed its full-year revenue outlook to $3.085 billion-$3.115 billion and raised adjusted EPS guidance to $5.05-$5.15. Bright Horizons also repurchased approximately $250 million of shares in the quarter, while ending with 2.2x net leverage.
Bright Horizons Family Solutions Trading Down 4.4%
NYSE BFAM traded down $3.44 during trading hours on Friday, hitting $74.51. The company’s stock had a trading volume of 1,089,764 shares, compared to its average volume of 825,191. Bright Horizons Family Solutions has a twelve month low of $57.63 and a twelve month high of $130.76. The firm has a market capitalization of $3.92 billion, a P/E ratio of 23.58, a PEG ratio of 1.34 and a beta of 1.15. The company has a quick ratio of 0.46, a current ratio of 0.46 and a debt-to-equity ratio of 0.78. The stock has a fifty day moving average of $69.68 and a 200 day moving average of $76.70.
Analyst Upgrades and Downgrades
View Our Latest Stock Report on BFAM
Bright Horizons Family Solutions News Roundup
Here are the key news stories impacting Bright Horizons Family Solutions this week:
- Positive Sentiment: Bright Horizons earned $1.28 per share, exceeding the $1.21 consensus estimate and rising from $1.07 a year earlier. Revenue increased 6.4% year over year to $779.18 million, also surpassing analysts’ $774.84 million forecast. Bright Horizons Family Solutions Reports Financial Results for the Second Quarter of 2026
- Positive Sentiment: The company provided fiscal 2026 EPS guidance of $5.05 to $5.15, above the previous consensus estimate of $4.94. This suggests management expects earnings growth to continue. Bright Horizons Beats Q2 Earnings and Revenue Estimates
- Positive Sentiment: Management’s results reflect continued demand for early education, child care, back-up care and employer-supported workforce services. The earnings call and related coverage highlighted revenue growth across the company’s operating platform. Bright Horizons Q2 2026 Earnings Call Transcript
- Neutral Sentiment: Full-year revenue guidance was approximately $3.1 billion, broadly in line with Wall Street expectations. Consequently, the earnings beat may not have represented a major upward revision to sales expectations. Bright Horizons Q2 Key Metrics
- Negative Sentiment: Although BFAM beat quarterly estimates and raised EPS expectations above consensus, the stock’s decrease suggests investors may have been looking for a stronger revenue outlook or more significant guidance improvement. At roughly 23.6 times earnings, valuation and profit-taking may also be limiting the reaction.
Insider Buying and Selling
In other Bright Horizons Family Solutions news, COO Mary Lou Burke sold 500 shares of the company’s stock in a transaction on Tuesday, July 28th. The shares were sold at an average price of $80.00, for a total transaction of $40,000.00. Following the completion of the sale, the chief operating officer owned 33,345 shares in the company, valued at approximately $2,667,600. The trade was a 1.48% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Corporate insiders own 1.21% of the company’s stock.
Institutional Inflows and Outflows
A number of institutional investors have recently bought and sold shares of BFAM. NewEdge Advisors LLC boosted its position in shares of Bright Horizons Family Solutions by 24.1% during the first quarter. NewEdge Advisors LLC now owns 6,750 shares of the company’s stock worth $858,000 after purchasing an additional 1,312 shares in the last quarter. Goldman Sachs Group Inc. increased its position in shares of Bright Horizons Family Solutions by 149.1% in the 1st quarter. Goldman Sachs Group Inc. now owns 614,293 shares of the company’s stock valued at $78,040,000 after buying an additional 367,711 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in Bright Horizons Family Solutions by 12.0% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 195,119 shares of the company’s stock worth $24,788,000 after buying an additional 20,859 shares during the period. Jane Street Group LLC lifted its holdings in Bright Horizons Family Solutions by 646.2% during the first quarter. Jane Street Group LLC now owns 59,643 shares of the company’s stock worth $7,577,000 after acquiring an additional 51,650 shares in the last quarter. Finally, Focus Partners Wealth grew its stake in Bright Horizons Family Solutions by 70.5% in the first quarter. Focus Partners Wealth now owns 4,516 shares of the company’s stock valued at $574,000 after acquiring an additional 1,868 shares during the period.
Bright Horizons Family Solutions Company Profile
Bright Horizons Family Solutions, Inc (NYSE: BFAM) is a leading provider of employer-sponsored child care and early education services, offering a range of solutions designed to support working families and organizations. Through a network of on-site, near-site and center-based programs, the company partners with corporate and nonprofit clients to deliver infant, toddler, preschool and school-age care. Services emphasize age-appropriate curriculum, developmental milestones and community engagement to ensure high-quality learning experiences.
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