Premier Inc
NASDAQ:PINC
Premier Inc
Premier Inc. is a healthcare improvement company that has strategically positioned itself at the intersection of healthcare providers and suppliers, harnessing both data and scale to enhance its value proposition. Born from a collaboration among hospitals to aggregate purchasing power, Premier has evolved into a significant player in transforming healthcare efficiency and efficacy. At its core, the company functions through two primary segments: Supply Chain Services and Performance Services. Within Supply Chain Services, Premier leverages its vast network, which constitutes approximately 4,000 hospitals and health systems, to negotiate group purchasing contracts. This aggregation of demand affords members considerable cost savings, while the company earns a portion of these savings as revenue, combined with fees charged for membership and other related services.
Beyond its pioneering roots in group purchasing, Premier also excels in Performance Services, where it delves deeply into analytics, technology, and consulting seamlessly integrated into healthcare operations. By capitalizing on its extensive data repositories, Premier delivers actionable insights that facilitate better decision-making and outcomes for healthcare providers. Through its offerings, such as performance improvement initiatives, technology solutions, and advisory services, Premier helps its members thrive in an increasingly complex healthcare landscape. Ultimately, Premier Inc. sustains its business by creating and capturing value at multiple touchpoints across the healthcare continuum, emphasizing a model that benefits stakeholders by promoting cost reduction, efficiency, and quality improvements.
Premier Inc. is a healthcare improvement company that has strategically positioned itself at the intersection of healthcare providers and suppliers, harnessing both data and scale to enhance its value proposition. Born from a collaboration among hospitals to aggregate purchasing power, Premier has evolved into a significant player in transforming healthcare efficiency and efficacy. At its core, the company functions through two primary segments: Supply Chain Services and Performance Services. Within Supply Chain Services, Premier leverages its vast network, which constitutes approximately 4,000 hospitals and health systems, to negotiate group purchasing contracts. This aggregation of demand affords members considerable cost savings, while the company earns a portion of these savings as revenue, combined with fees charged for membership and other related services.
Beyond its pioneering roots in group purchasing, Premier also excels in Performance Services, where it delves deeply into analytics, technology, and consulting seamlessly integrated into healthcare operations. By capitalizing on its extensive data repositories, Premier delivers actionable insights that facilitate better decision-making and outcomes for healthcare providers. Through its offerings, such as performance improvement initiatives, technology solutions, and advisory services, Premier helps its members thrive in an increasingly complex healthcare landscape. Ultimately, Premier Inc. sustains its business by creating and capturing value at multiple touchpoints across the healthcare continuum, emphasizing a model that benefits stakeholders by promoting cost reduction, efficiency, and quality improvements.
Revenue Beat: Premier's full year revenue was $986 million, exceeding the midpoint of guidance by $11 million, and fourth quarter revenue also came in above expectations.
Profitability: Adjusted EPS for the year was $1.54, beating the high end of guidance by $0.11, and fourth quarter adjusted EPS of $0.46 was well ahead of expectations.
Strong Supply Chain: The Supply Chain Services segment outperformed, with better-than-expected contract penetration and new member spend driving results.
Advisory Momentum: Premier signed four large advisory deals recently, fueling a turnaround in Performance Services and setting up over 25% advisory growth in fiscal 2026.
Cost Controls: Operating expenses were reduced by $40 million on an annual run rate basis in Q4, with additional savings expected in fiscal 2026.
Capital Returns: Premier completed a $200 million accelerated share repurchase and paid $77 million in dividends in 2025.
Guidance: Fiscal 2026 revenue is guided to $940 million–$1 billion, with adjusted EBITDA of $230–245 million and adjusted EPS of $1.33–$1.43; growth in key metrics is expected to resume in 2027.
IllumiCare Acquisition: The addition of IllumiCare is expected to expand clinical decision support and provide revenue synergies, with $8–10 million in revenue forecast for 2026.
