Stride Shares Surge on Exceptional Quarterly Performance
29.01.2026 - 11:33:05
Stride Inc., a prominent provider of online education, has delivered fiscal second-quarter results that comfortably surpassed market expectations. The strong performance, driven by robust enrollment growth, prompted management to raise its full-year profit guidance, leading to a significant rally in the company's stock price.
For the quarter ended December 31, 2025, Stride reported revenue of $631.3 million, representing a 7.5 percent year-over-year increase. Profitability metrics were even more impressive. Adjusted earnings per share (EPS) came in at $2.50, decisively beating analyst consensus estimates. Furthermore, the company's adjusted operating income jumped 17 percent to $159.0 million, signaling enhanced operational efficiency across its business.
A primary catalyst for this growth was a 7.8 percent rise in total enrollments, which reached 248,500 students. The "Career Learning" segment, which focuses on career readiness programs, was a particular standout, achieving double-digit revenue growth.
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Revised Guidance and Market Reaction
In response to this stronger-than-anticipated quarter, Stride's leadership has upwardly revised its outlook for the full fiscal year. The forecast for adjusted operating income is now set between $485 million and $505 million. The company reaffirmed its revenue guidance, which remains in the range of $2.48 billion to $2.555 billion. CEO James Rhyu also addressed previous technical challenges, stating that platform stability has been successfully restored.
The positive results resonated with analysts. Firms including Barrington Research and Canaccord Genuity reiterated their bullish ratings—"Outperform" and "Buy," respectively—with both maintaining a price target of $125 per share. Currently trading at $82.75, Stride's stock has posted substantial gains over the past week, though it remains notably below its 52-week high.
Investors will next focus on the company's third-quarter fiscal report, scheduled for release in April 2026.
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