Wells Fargo raised its price target for Phreesia to $10 from $9 while maintaining an equal-weight rating, citing accelerating network growth and margin expansion.
The upgrade reflects Phreesia’s fiscal second-quarter 2027 performance, which included revenue of $129.5 million and adjusted EBITDA of $32.9 million. The adjusted EBITDA margin reached 25.4%, exceeding Wells Fargo’s and consensus estimates of 23.5% and 23.6%, respectively. The company’s network segment grew 9% year-over-year, while trailing twelve-month revenue increased 14%.
Phreesia’s subscription revenue declined 2% year-over-year, though its AHCS segment rose 3%. The company also highlighted a ProviderConnect pilot project that delivered a 4% prescription lift in a GLP-1 campaign, generating follow-on business. Wells Fargo noted the pilot’s success as a contributing factor to the upgraded outlook.
For the fiscal second quarter of 2026, Phreesia reported revenue of $129.5 million, a 10% increase from the prior year. Adjusted earnings per share totaled $0.03, below the forecasted $0.09. Phreesia’s market capitalization stood at $732 million as of the latest data.
Phreesia, a healthcare software provider, operates a patient intake and revenue cycle management platform. The company’s network segment, which connects providers and patients, remains a focal point for growth amid broader industry digitalization trends.
