Phreesia Inc. (NYSE:PHR) stock is moving lower in premarket trading on Tuesday following an earnings report that underscored a weaker-than-expected revenue outlook.

Phreesia Sees Weaker Pharma Spending Visibility

Phreesia on Monday lowered its fiscal 2027 revenue outlook to $510–$520 million, down from $545–$559 million, citing reduced visibility into pharma client spending and weaker-than-expected commitments for the second half of the year.

Some clients are allocating fewer dollars due to brand-specific factors, including regulatory impacts.

Management does not view this as a structural demand shift but flagged increased variability in network solutions revenue, particularly in the back half. The outlook assumes around $37 million from AccessOne and excludes any future acquisitions.

The company maintained its Adjusted EBITDA guidance at $125–$135 million, indicating it expects to absorb most of the revenue shortfall. This is supported by operating leverage and cost efficiencies, including increased use of AI to reduce reliance on manual and outsourced processes.

For fiscal 2027, Phreesia continues to expect mid-single-digit AHSC growth, but now sees total revenue per AHSC growing in the low-single digits, down from prior expectations of low double-digit growth.

Phreesia Analyst Flags Continued Softness

William Blair on Monday wrote, consistent with prior commentary, management noted that the pharma end-market remains relatively soft compared with prior years, given the timing of recent regulatory developments and most favored nation (MFN) pricing discussions at the end of 2025, which contributed to delays in marketing budget deployment.

Analyst Ryan Daniels added that the weakness continued into early 2026, as clients continue to commit to lower spending levels for the second half of the year as well.

Mixed Quarterly Results

Phreesia reported fourth-quarter earnings of 2 cents, missing the consensus of 7 cents.

Sales reached $127.07 million, up 16% year-over-year, beating the consensus of $126.62 million.

The average number of healthcare service clients (AHSCs) was 4,658 in the quarter, up 7% year-over-year.

Total revenue per AHSC was $27,279 in the quarter, up 8% year-over-year.

Adjusted EBITDA was $29.4 million in the quarter, as compared to $16.4 million a year ago.

PHR Stock Price Activity: Phreesia shares were down 26.82% at $8.35 during premarket trading on Tuesday, according to Benzinga Pro data.

Image via Shutterstock