Bright Horizons Family Solutions (NYSE:BFAM) Releases Earnings Results, Beats Estimates By $0.02 EPS

Bright Horizons Family Solutions (NYSE:BFAM) announced its earnings results on Thursday. The company reported $1.15 EPS for the quarter, topping the consensus estimate of $1.13 by $0.02, FiscalAI reports. Bright Horizons Family Solutions had a return on equity of 17.27% and a net margin of 6.58%.The company had revenue of $733.70 million for the quarter, compared to analysts’ expectations of $727.44 million. During the same quarter in the prior year, the business earned $0.98 earnings per share. The business’s revenue for the quarter was up 9.2% on a year-over-year basis. Bright Horizons Family Solutions updated its FY 2026 guidance to 4.900-5.100 EPS.

Here are the key takeaways from Bright Horizons Family Solutions’ conference call:

• Management reported a strong finish to 2025 with Q4 revenue up 9% to $734M and Adjusted EPS up 17% to $1.15 (FY revenue $2.93B, Adjusted EPS $4.55, +31% YoY), and issued 2026 guidance of $3.075B–$3.125B revenue and $4.90–$5.10 EPS (forward-looking statements may be optimistic).
• Back‑Up Care remains the primary growth engine — Q4 revenue +17% to $183M, FY +19% to $728M, ~32% operating margin, with penetration still under 10% at existing clients and 2026 guidance of +11%–13% revenue growth.
• The Full Service business shows modest recovery (Q4 revenue +6%, occupancy mid‑60s, enrollment +1% in >1‑yr centers) but faces a ~200bp revenue headwind from portfolio rationalization; the company expects 45–50 center closures vs. ~20 openings in 2026 and says many closed sites were loss‑making.
• Cash flow and capital allocation are supportive — $351M cash from operations, capex $91M, $225M of share repurchases in 2025 (≈$120M in Q4), and net leverage ~1.7x, which the company highlights as strengthening the balance sheet.

Bright Horizons Family Solutions Price Performance

Shares of NYSE:BFAM opened at $66.99 on Friday. Bright Horizons Family Solutions has a 12 month low of $63.68 and a 12 month high of $132.99. The company has a current ratio of 0.54, a quick ratio of 0.54 and a debt-to-equity ratio of 0.52. The stock has a market cap of $3.79 billion, a P/E ratio of 19.94, a P/E/G ratio of 1.00 and a beta of 1.40. The company has a 50 day moving average of $96.02 and a 200 day moving average of $103.92.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on the company. The Goldman Sachs Group dropped their target price on Bright Horizons Family Solutions from $130.00 to $112.00 and set a “buy” rating for the company in a research report on Friday. Deutsche Bank Aktiengesellschaft set a $99.00 price target on Bright Horizons Family Solutions and gave the stock a “hold” rating in a research report on Friday. BMO Capital Markets restated an “outperform” rating and issued a $124.00 price objective on shares of Bright Horizons Family Solutions in a research note on Friday, October 31st. JPMorgan Chase & Co. lifted their target price on Bright Horizons Family Solutions from $156.00 to $160.00 and gave the stock an “overweight” rating in a report on Friday, October 31st. Finally, Morgan Stanley set a $70.00 target price on Bright Horizons Family Solutions in a report on Friday. Three investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $111.63.

Key Stories Impacting Bright Horizons Family Solutions

Here are the key news stories impacting Bright Horizons Family Solutions this week:

• Positive Sentiment: Q4 results narrowly beat expectations — EPS $1.15 vs. $1.13 consensus and revenue $733.7M (revenue +9.2% YoY), showing underlying demand strength. Bright Horizons Family Solutions (BFAM) Beats Q4 Earnings and Revenue Estimates
• Positive Sentiment: Management set FY2026 EPS guidance of $4.90–$5.10 and revenue target near $3.1B, implying continued earnings recovery and mid-single-digit top-line growth. Bright Horizons Family Solutions Inc (BFAM) Q4 2025 Earnings Call Highlights: Strong Revenue …
• Neutral Sentiment: Guidance is roughly in line with street estimates (consensus ~4.92 EPS) — not a meaningful raise, which may temper enthusiasm despite the beat. Bright Horizons targets $3.1B revenue and $5.10 EPS for 2026 while advancing portfolio rationalization
• Neutral Sentiment: Company is advancing a portfolio rationalization program — could improve margins long term but creates near-term uncertainty about dispositions and execution. Bright Horizons targets $3.1B revenue and $5.10 EPS for 2026 while advancing portfolio rationalization
• Negative Sentiment: Shares fell to a 52-week low after the results; market reaction reflects disappointment that the beat didn’t translate into stronger forward optimism. Bright Horizons Shares Drop to 52-Week Low After 4Q Earnings Decline
• Negative Sentiment: An investor alert notes a probe into Bright Horizons’ directors and officers (Scott+Scott), which adds legal/rep risk and may increase short-term selling pressure. BRIGHT HORIZONS FAMILY SOLUTIONS INC. INVESTOR ALERT: Scott+Scott Attorneys at Law LLP Investigates…
• Neutral Sentiment: Earnings call transcript and analyses are available for detail-oriented investors evaluating margin drivers and the cadence of portfolio actions. BFAM Q4 2025 Earnings Call Transcript

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Fuller & Thaler Asset Management Inc. bought a new stake in Bright Horizons Family Solutions during the 4th quarter valued at approximately $191,952,000. Two Sigma Investments LP lifted its holdings in Bright Horizons Family Solutions by 358.5% in the third quarter. Two Sigma Investments LP now owns 494,382 shares of the company’s stock valued at $53,675,000 after acquiring an additional 386,558 shares during the period. Voloridge Investment Management LLC boosted its holdings in shares of Bright Horizons Family Solutions by 1,638.6% in the third quarter. Voloridge Investment Management LLC now owns 395,272 shares of the company’s stock worth $42,915,000 after buying an additional 372,537 shares during the last quarter. Goldman Sachs Group Inc. boosted its position in shares of Bright Horizons Family Solutions by 149.1% in the first quarter. Goldman Sachs Group Inc. now owns 614,293 shares of the company’s stock worth $78,040,000 after purchasing an additional 367,711 shares during the period. Finally, UBS Group AG grew its stake in Bright Horizons Family Solutions by 150.9% during the third quarter. UBS Group AG now owns 526,345 shares of the company’s stock valued at $57,145,000 after acquiring an additional 316,589 shares in the last quarter.

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.