JonesResearch Targets $3B in Annualized Revenue for The GEO Group (GEO) by 2026, Driven by Contracts, Monitoring

GEO +1.16%

The GEO Group Inc. (NYSE:GEO) is one of the best upside stocks to buy now. On November 8, JonesResearch lowered the firm’s price target on GEO Group to $37 from $50 with a Buy rating on the shares. The firm noted that the company has started to show a trajectory toward over $3 billion in annualized revenue for the full-year 2026, driven by upcoming contracts and monitoring services.

At the same time, the firm revised its financial estimates downward to account for slower growth than previously expected. Despite this revision, the firm remains bullish on all segments of GEO, with particular excitement for the Intensive Supervision Appearance Program/ISAP opportunity.

Earlier in its Q3 2025 earnings report, the GEO Group disclosed that its revenue reached $682 million, which was an increase from $603 million in Q3 2024. The company’s reported net income for Q3 was $174 million, or $1.24 per diluted share, up sharply from $26 million, or $0.19 per diluted share, in Q3 2024. The company also provided its full-year 2025 revenue guidance of ~$2.6 billion.

Regarding the Intensive Supervision Appearance Program/ISAP 5 contract, the company had to reduce pricing to remain competitive, which may impact margins, particularly as the mix shifts toward more intensive, higher-cost monitoring devices. The government’s Request for Proposal for the ISAP contract identified participant counts of 361,000 in year one and 465,000 in year two, with the contract term extending into 2027. GEO anticipates the ISAP ramp-up to begin in early 2026.

The GEO Group Inc. (NYSE:GEO) is a leading diversified government service provider that designs, finances, develops, and supports services for secure facilities, processing centers, and community reentry centers in the US, Australia, South Africa, and the UK.

While we acknowledge the potential of GEO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.