Overview

• Premier fiscal Q1 2026 revenue missed analyst expectations, declining 3% yr/yr

• Adjusted EPS for fiscal Q1 beats consensus, despite a 12% yr/yr decrease

• Company suspends dividend distribution due to pending acquisition by Patient Square Capital

Outlook

• Premier withdraws fiscal-year 2026 guidance due to pending acquisition

• Company suspends common stock dividends amid acquisition

• Contigo Health wind-down expected by December 31, 2025

Result Drivers

• PERFORMANCE SERVICES DECLINE - Performance Services segment revenue decreased 9% due to lower license revenue, partially offset by consulting growth and IllumiCare acquisition contributions

• SUPPLY CHAIN SERVICES GROWTH - Software licenses and other services revenue increased 5% driven by new engagements and digital solutions expansion

• NET INCOME IMPACT - Decrease in net income from continuing operations due to absence of prior-year non-operating gain from lawsuit settlement

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the advanced medical equipment & technology peer group is "buy."

• Wall Street's median 12-month price target for Premier Inc is $28.25, about 0.2% above its November 3 closing price of $28.19

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release: ID:nBw5sG6bra

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)