Strategic Education Q2 revenue beats estimates on education technology growth

Strategic Education

29/07/2026 11:40

Overview
U.S. education services firm's Q2 revenue rose 4.9%, beating analyst expectations
Adjusted EPS for Q2 missed analyst expectations
Company repurchased 420,624 shares for $32.8 mln during the quarter

Outlook
Company did not provide specific guidance for the current quarter or full year

Result Drivers
EDUCATION TECHNOLOGY GROWTH - ETS segment revenue rose over 15% YOY, driven by higher Sophia Learning subscriptions, employer-affiliated enrollment, and Workforce Edge partnerships
HIGHER REVENUE PER STUDENT - U.S. Higher Education revenue rose 2.3% YOY, supported by higher revenue per student and growth in healthcare program enrollment
REGULATORY IMPACTS IN AUSTRALIA - Lower international enrollment in Australia/New Zealand due to regulatory changes offset by higher domestic enrollment and currency gains; $13.9 mln reserve recorded for compliance matter

Company press release: ID:nBwbWWPspa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$337.3 mln
$327.67 mln (3 Analysts)
Q2 Adjusted EPS
Miss
$1.76
$1.80 (3 Analysts)
Q2 EPS
 
$1.71
 
Q2 Net Income
 
$37.2 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the miscellaneous educational service providers peer group is "buy"
Wall Street's median 12-month price target for Strategic Education Inc is $86.00, about 5.7% above its July 28 closing price of $81.39
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)