DeVry Education (ATGE) shares plunged 33.29% in Friday's trading session, despite the company reporting better-than-expected fiscal first-quarter results. The dramatic sell-off has left investors and analysts puzzled, as the educational services provider appeared to outperform market expectations.

According to the company's latest earnings report, Adtalem Global Education, DeVry's parent company, posted adjusted earnings of $1.75 per diluted share for the fiscal first quarter, significantly higher than the $1.29 reported in the same period last year. This figure also surpassed the FactSet analyst consensus of $1.58 per share. Revenue for the quarter ended September 30 reached $462.3 million, up from $417.4 million a year earlier and beating the analyst expectations of $452.3 million.

Despite the strong quarterly performance, investors seem to be focusing on other factors driving the stock lower. The company maintained its fiscal year 2026 guidance, projecting adjusted EPS of $7.60 to $7.90 on revenue of $1.90 billion to $1.94 billion, which aligns with current analyst expectations. However, the market's severe reaction suggests that investors may have been anticipating an increase in guidance or harboring concerns about future growth prospects. Additionally, BMO Capital Markets' decision to cut the target price for Adtalem Global Education from $172 to $158, although still well above the current trading price, may have contributed to the negative sentiment surrounding the stock.