Bright Horizons Family Solutions: Back-Up Strength Still Outruns The Core Recovery

Bright Horizons Family Solutions remains a hold as Back-up Care drives growth but Full Service lags on enrollment and occupancy. BFAM's Q2 2026 saw Back-up Care revenue up 19% with a 26% margin, now contributing over half of total operating income. Full Service revenue grew just 3%, with volume muted and capacity running ahead of occupancy, raising concerns for long-term EBIT targets. Valuation appears fair at ~13.4x NTM PE; upside hinges on sustained Back-up Care execution and visible Full Service recovery.