Why Progyny (PGNY) Is Up 7.6% After Raising 2025 Revenue and Earnings Guidance

• Progyny, Inc. recently reported stronger-than-expected second quarter results and raised its full-year 2025 revenue and earnings guidance, projecting annual revenue of US$1.24 billion to US$1.27 billion and net income of US$52.3 million to US$58.9 million.
• Excluding the impact of a transitioning large client, the company's outlook highlights robust underlying growth, driven by expanding demand for its fertility and women’s health benefits.
• We'll explore how Progyny's upgraded guidance, particularly the highlighted growth excluding the transitioning client, could reshape its investment outlook.

Find companies with promising cash flow potential yet trading below their fair value.

Progyny Investment Narrative Recap

Owning shares of Progyny means believing in the long-term expansion of employer-sponsored fertility and women’s health benefits. The recent boost in full-year guidance underscores steady demand, but with a significant client now transitioning out, the main short-term catalyst remains whether underlying revenue growth can offset client concentration risk. For now, the raised guidance dampens immediate concerns, but persistent competition and shifting employer priorities remain key risks that have not materially changed in light of this update.

The most relevant recent announcement is Progyny’s full-year 2025 guidance upgrade. Excluding the large client winding down, the company’s projected revenue growth accelerates to 15.1% to 18.5%, which keeps the focus on how resilient and diversified its revenue streams can become amid ongoing shifts in client composition and market competition.

By contrast, investors should be keenly aware that even with strong underlying demand, client concentration risk remains...

Read the full narrative on Progyny (it's free!)

Progyny's outlook forecasts $1.6 billion in revenue and $112.6 million in earnings by 2028. This is based on analysts' assumptions of 8.9% annual revenue growth and a $59.5 million increase in earnings from the current $53.1 million.

Uncover how Progyny's forecasts yield a $27.75 fair value, a 19% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members contributed 3 fair value estimates for Progyny, ranging from US$27.75 to US$69.49 per share. Several see sustained employer demand for women’s health benefits as a catalyst, but opinions vary widely so it's essential to compare multiple outlooks.

Explore 3 other fair value estimates on Progyny - why the stock might be worth just $27.75!

Build Your Own Progyny Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Progyny research is our analysis highlighting 2 key rewards that could impact your investment decision.
• Our free Progyny research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Progyny's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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