Vocational education company Covista (NYSE: CVSA) announced better-than-expected revenue in calendar Q3 2026 (fiscal Q1 2027), with sales up 10.7% year on year to $511.5 million. The company expects the full year’s revenue to be around $2.08 billion, close to analysts’ estimates. Its non-GAAP profit of $2.19 per share was 19.5% above analysts’ consensus estimates.

Is now the time to buy CVSA? Find out in our full research report (it’s free for active Edge members).

StockStory’s take

Covista’s third-quarter performance outpaced Wall Street’s expectations, reflecting strong enrollment trends in its healthcare-focused educational programs and disciplined execution across its three core segments. Management attributed the results to robust demand for nursing and medical degrees as well as continued momentum at Walden University, which achieved its tenth consecutive quarter of double-digit enrollment growth. CEO Steve Beard noted, “We are attracting and developing more future clinicians and partnering with leading health systems to keep them,” underscoring the company’s focus on addressing the nationwide healthcare worker shortage.

Looking ahead, Covista’s management raised its full-year guidance, emphasizing investments in new campuses, deeper partnerships with health systems, and technology enhancements as key growth levers. Beard cited the expansion of employer-integrated education models and the rollout of AI-powered classroom technology as priorities for maintaining enrollment and improving student outcomes. The company remains focused on expanding capacity and reducing friction in student admissions, with Beard stating, “We are building on this foundation by further improving discoverability and positive sentiment of our institutions.”

Key insights from management’s remarks

Covista’s leadership pointed to sustained healthcare demand, new campus launches, and expanded employer partnerships as central to its outperformance and updated guidance.

• Healthcare enrollment momentum: The largest share of Covista’s student body is in healthcare fields, where employer demand is high. Chamberlain’s pre-licensure nursing programs remain a growth engine, with application strength heading into upcoming sessions.

• Walden University persistence: Walden achieved record enrollment, driven by broad-based strength across degree levels and a successful marketing campaign targeting undergraduates. Management noted that strong student persistence is compounding enrollment gains and supporting margin expansion.

• Medical and Veterinary resilience: The MedVet segment turned in another solid quarter, with both medical and veterinary schools operating near capacity. Management flagged that student interest remains strong, and recent changes to federal loan programs are not expected to dampen long-term demand.

• Employer-integrated education: Partnerships with major health systems, such as Advocate Health and SSM Health, are now contributing to more durable enrollment, lower student acquisition costs, and expanded financial support for students.

• Technology investments: Covista is advancing development of its AI-powered classroom and leveraging large language model (LLM) search strategies to enhance program discoverability and student experience. Management believes these investments will further differentiate the company and support future enrollment growth.

Drivers of future performance

Covista’s outlook is shaped by ongoing investments in capacity, technology, and employer partnerships, alongside continued strong healthcare sector demand.

• Campus expansion and capacity: Management expects new campus launches—such as recent openings in Cincinnati and Salt Lake City and an upcoming Nashville campus—to provide additional enrollment seats. While initial investments may weigh on margins, the company views capacity as the primary constraint on growth, not student demand.

• Health system collaborations: Deeper integration with health system partners is expected to drive more stable and recurring enrollment, with employers increasingly subsidizing tuition. Management highlighted that these relationships offer differentiated pipelines for health systems and lower student acquisition costs for Covista.

• AI and digital transformation: The rollout of AI-powered classrooms and optimization of LLM search strategies are anticipated to improve student engagement and institutional visibility. The company believes these initiatives will enhance both recruitment efficiency and the quality of the learning experience, supporting future growth.

Catalysts in upcoming quarters

In the coming quarters, the StockStory team will be watching (1) the pace of enrollment growth at newly opened and planned campuses, (2) progress on expanding health system partnerships and their impact on employer-sponsored student pipelines, and (3) the effectiveness of AI and digital initiatives in enhancing student recruitment and engagement. Execution on these priorities will be essential for sustaining Covista’s growth trajectory.

Covista currently trades at $124.39, down from $128.82 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).

High quality stocks for all market conditions

WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.

But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.

Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.