Bright Horizons (NYSE:BFAM) Beats Q4 Revenue Estimates with 8.8% YoY Growth

Bright Horizons (NYSE:BFAM) released Q4 CY2025 results exceeding Wall Street expectations. Sales rose 8.8% year-on-year to $733.7 million; non-GAAP EPS of $1.15 per share beat consensus by 2.5%. However, full-year revenue guidance of $3.1 billion is 0.8% below estimates, and full-year EPS guidance of $4.56 is 11.4% below consensus. Over five years, sales grew at a 14.1% CAGR, while EPS growth lagged at 23.9%. The last two years’ annualized sales growth of 10.1% slowed, and operating margins averaged 10% over the past two years with Q4 margin 6.2%, consistent with last year. Looking ahead, sell-side analysts expect next-year revenue to grow 6.4%, signaling potential headwinds, and the stock fell 3.5% to $79 in after-hours trading. Caution is advised with the current print, but the company remains a free-service provider in a sector sensitive to product cycles and switching costs.