Phreesia (PHR) shares plummeted 27.5% on Tuesday morning following the release of its fiscal Q4 2026 earnings, which showed a significant earnings miss despite a slight revenue beat. The company reported earnings of $0.02 per share against expectations of $0.06, although it did achieve $127.1 million in sales, surpassing the $126.9 million forecast. Notably, Phreesia’s year-over-year sales growth was 16%, and it reported positive free cash flow of $28.5 million for the quarter.
The real concern for investors lies in Phreesia’s cautious guidance for fiscal 2027. The company indicated a loss of “visibility” regarding spending commitments from certain pharmaceutical manufacturers, prompting a downward revision of its revenue forecast to $510 million-$520 million, significantly below Wall Street’s expectation of $552 million.
As Phreesia’s stock now trades at approximately 26 times trailing free cash flow, market professionals may need to reassess its valuation given the slowing growth outlook and heightened uncertainty in customer commitments.
Source: fool.com