Why Phreesia Stock Flopped Today

Phreesia (NYSE: PHR) banal collapsed connected Tuesday, falling 27.5% done 10:20 a.m. ET aft reporting mixed net results for its fiscal Q4 2026 past night.

Heading into the report, analysts expected the integer doctor's bureau beforehand table work to gain $0.06 per stock connected income of $126.9 cardinal successful sales. Phreesia really bushed the gross estimate, reporting $127.1 million, but it missed severely connected earnings, reporting lone $0.02 per share.

Will AI make the world's archetypal trillionaire? Our squad conscionable released a study connected the 1 little-known company, called an "Indispensable Monopoly" providing the captious exertion Nvidia and Intel some need. Continue »

Not each the quality was bad. Phreesia grew income 16% twelvemonth implicit year, and flipped to a Q4 nett -- and a full-year nett arsenic good ($0.04 per share). Free currency travel was besides positive, $28.5 cardinal for the 4th and $54.4 cardinal for the twelvemonth (deducting some superior spending and capitalized bundle costs from operating currency flow, to get astatine FCF).

Even admitting the net miss, however, it wasn't truly past year's results that tripped up Phreesia this morning. It was the guidance for next year.

Turning to fiscal 2027 guidance, Phreesia warned that it's losing "visibility" into spending commitments by "certain" pharmaceutical manufacturers. These customers might still walk arsenic antecedently expected, but they are not "committing" to bash so, making Phreesia little definite of its guidance numbers.

Phreesia is responding by giving much blimpish gross guidance for the coming fiscal twelvemonth -- $510 cardinal to $520 million, down from $545 cardinal to $559 cardinal previously. This is inactive 7% projected maturation from fiscal 2026, but it's good beneath the $552 cardinal that Wall Street has been expecting.

With Phreesia banal trading astatine astir 26 times trailing FCF and maturation present successful the azygous digits, Phreesia banal appears to outgo much than it's worth.

Before you bargain banal successful Phreesia, see this:

The Motley Fool Stock Advisor expert squad conscionable identified what they judge are the 10 champion stocks for investors to bargain now… and Phreesia wasn’t 1 of them. The 10 stocks that made the chopped could nutrient monster returns successful the coming years.

Consider erstwhile Netflix made this database connected December 17, 2004... if you invested $1,000 astatine the clip of our recommendation, you’d person $501,381!* Or erstwhile Nvidia made this database connected April 15, 2005... if you invested $1,000 astatine the clip of our recommendation, you’d person $1,012,581!*