Why Phreesia Stock Flopped Today

By Rich Smith – Mar 31, 2026 at 10:40AM ESTKey PointsPhreesia beat on sales but missed on earnings last night.Management also lowered guidance for sales growth this year, fiscal 2027.Phreesia (PHR 29.01%) stock collapsed on Tuesday, falling 27.5% through 10:20 a.m. ET after reporting mixed earnings results for its fiscal Q4 2026 last night. Heading into the report, analysts expected the digital doctor's office front desk service to earn $0.06 per share on sales of $126.9 million in sales. Phreesia actually beat the revenue estimate, reporting $127.1 million, but it missed badly on earnings, reporting only $0.02 per share. Image source: Getty Images. Phreesia Q4 earnings Not all the news was bad. Phreesia grew sales 16% year over year, and flipped to a Q4 profit -- and a full-year profit as well ($0.04 per share). Free cash flow was also positive, $28.5 million for the quarter and $54.4 million for the year (deducting both capital spending and capitalized software costs from operating cash flow, to arrive at FCF). Even admitting the earnings miss, however, it wasn't really last year's results that tripped up Phreesia this morning. It was the guidance for next year. ExpandNYSE: PHRPhreesiaToday's Change(-29.01%) $-3.31Current Price$8.10Key Data PointsMarket Cap$688MDay's Range$7.90 - $9.0052wk Range$7.90 - $32.76Volume5.8MAvg Vol1.6MGross Margin61.90% What's next for Phreesia Turning to fiscal 2027 guidance, Phreesia warned that it's losing "visibility" into spending commitments by "certain" pharmaceutical manufacturers. These customers might still spend as previously expected, but they are not "committing" to do so, making Phreesia less certain of its guidance numbers. Phreesia is responding by giving more conservative revenue guidance for the coming fiscal year -- $510 million to $520 million, down from $545 million to $559 million previously. This is still 7% projected growth from fiscal 2026, but it's well below the $552 million that Wall Street has been expecting. With Phreesia stock trading at roughly 26 times trailing FCF and growth now in the single digits, Phreesia stock appears to cost more than it's worth.Read NextMar 31, 2026 •By Rich SmithWhy Virgin Galactic Stock Rocketed TodayMar 31, 2026 •By Rick MunarrizCathie Wood Goes Bargain Hunting: 3 Stocks She Just BoughtMar 31, 2026 •By Thomas NielA SpaceX IPO Could Open the Door for More Investment Into Smaller Space Companies Like Rocket Lab and Planet LabsMar 31, 2026 •By Rich SmithYork Space and Firefly Are Riding SpaceX's Coattails.

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