Shares of The GEO Group, Inc. (GEO) are soaring Wednesday after the company reported first-quarter results that easily topped expectations and raised its full-year guidance. The stock was up about 25% at $22.97 in afternoon trading.

Earnings Snapshot

GEO reported revenue of $705.2 million for the quarter, beating the consensus estimate of $688.9 million. That's a 17% jump from a year ago, fueled by contract awards the company secured in 2025. Those wins are expected to generate up to $520 million in incremental annual revenue, marking the largest single-year contract expansion in the history of GEO's secure services segment.

The growth was driven primarily by new and reactivated ICE detention facilities. GEO added roughly 6,000 beds across four sites, boosting its total ICE capacity to about 26,000 beds. The company also noted that detention operations continued without disruption during a partial DHS shutdown, thanks to essential service status and long-term federal funding.

Adjusted EBITDA rose 32% year over year to $131.4 million. Adjusted earnings per share came in at $0.29, well above the $0.20 consensus. At the end of the quarter, GEO had net debt of about $1.53 billion and roughly $80 million in cash and cash equivalents.

The company also continued its aggressive share buyback program, repurchasing about 3.6 million shares for roughly $50 million during the quarter. Cumulatively, GEO has bought back approximately 8.5 million shares for $141 million under its $500 million authorization. As of March 31, 2026, about $359 million remains under the buyback program.

Outlook

GEO raised its full-year 2026 EPS guidance to $1.15–$1.25, up from $0.99–$1.07 and above the $1.12 consensus. The company slightly narrowed its sales guidance to $2.95–$3.10 billion, from $2.90–$3.10 billion, compared to the Street view of $2.963 billion.

For the second quarter, GEO expects EPS of $0.25–$0.29 (versus the $0.26 consensus) and revenue of $715–$725 million (versus $723.8 million expected).

With strong results, a raised outlook, and a hefty buyback still in play, investors are clearly feeling bullish about GEO's trajectory.