Geo Group Q3 revenue misses estimates

Overview

• U.S. secure facility operator's Q3 revenue rose 12% yr/yr but missed analyst expectations

• Company expanded share repurchase program by $750 mln to $1.25 bln

Outlook

• Geo Group raises FY26 net income guidance to $726.3 mln-$730.5 mln

• Company expects FY26 revenue of $2.975 bln-$3.025 bln

• Geo Group expects FY26 adjusted net income of $185 mln-$190 mln, or $1.40-$1.44 per share

Result Drivers

• NEW CONTRACTS - Co said significant revenue growth was driven by new or expanded contracts entered into in 2025 and 2026

• ONE-TIME COSTS - Q3 results included $3.5 mln in non-cash and one-time costs, including litigation and restructuring expenses

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the business support services peer group is "buy"

• Wall Street's median 12-month price target for The GEO Group, Inc. is $40.00, about 45.3% above its November 4 closing price of $27.53

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 21 three months ago

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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.)