Wall Street Splits on Phreesia (PHR) as Margins Improve but Growth Visibility Fades

On September 2, 2026, Phreesia, Inc. (NYSE:PHR) reported its second-quarter fiscal 2027 results, showing revenue of $129.5 million, up 10% year-over-year. Adjusted EBITDA increased to $32.9 million, a 25% margin, and net income reached $1.9 million, marking the company's fifth consecutive quarter of profitability. However, Wall Street's reaction was mixed, with some analysts raising their targets while others held cautious views.

Wells Fargo raised its target to $10 from $9 and highlighted the growth in Network Solutions and the ProviderConnect pilot. DA Davidson, on the other hand, maintained a Buy rating but cut its target to $13 from $14, noting that the stock sold off due to reiterated guidance. Baird analyst Joe Vruwink lifted his target to $11 from $10 at Neutral.

The company retired over $23 million in debt principal and has strong cash flow, but Wall Street remains concerned about the lack of visibility in top-line growth for the second half of the fiscal year.