Progyny Q3 2026 Earnings: Record Selling Season Fuels 2027 Outlook

Progyny posted adjusted EPS of $0.52 for the third quarter of 2026, beating the $0.51 consensus estimate, while revenue of $341.3 million came in just ahead of expectations and grew 8.9% year over year. Management's comments on where the business is heading carried more weight than the narrow beats.

The quarter brought a record selling season. CEO Pete Anevski said the company secured more than 85 new clients and 1.3 million new covered lives, its most ever in a single season. Combined with near-100% client retention for 2027 and existing clients expanding their coverage, Progyny now expects to serve more than 660 clients and roughly 8.3 million covered lives once all new business goes live next year.

The underlying financials showed broad improvement as well. Fertility benefit services revenue climbed 10.6% and pharmacy services added 5.8%. Gross margin widened 130 basis points to 24.5%, helped in part by lower stock-based compensation. Net income nearly doubled year over year, rising to $26.3 million.

Management raised its full-year 2026 revenue guidance to a range of $1.365 billion to $1.385 billion and set full-year adjusted EPS guidance at $2.09 to $2.13. For the fourth quarter, Progyny guided revenue of $344.7 million to $364.7 million. The company said most new clients from the selling season go live in the first quarter of 2027, with more comprehensive 2027 guidance expected in February.

Progyny also continued to return capital to shareholders, repurchasing nearly 3 million shares for $82.7 million during the quarter as part of its May 2026 $200 million buyback program, with roughly $51 million remaining under that authorization. Cash and equivalents fell $41.3 million sequentially as buyback activity absorbed a meaningful portion of the $56.6 million in operating cash flow the quarter generated.