What Happened?
Shares of online education Stride (NYSE: LRN) jumped 16.7% in the afternoon session after the company reported robust fourth-quarter and full-year 2025 financial results that significantly surpassed analyst expectations. For its fourth quarter, revenue climbed 22% to $653.6 million, beating forecasts, while adjusted earnings per share of $2.29 soared past the $1.76 analysts predicted. The strong quarter concluded a record fiscal year, with total revenue growing 18% to $2.4 billion. This growth stemmed from a sharp increase in enrollments, particularly in its Career Learning segment, which saw revenue jump 34.6%. Following the impressive report, Morgan Stanley raised its price target on the stock.
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What Is The Market Telling Us
Stride’s shares are somewhat volatile and have had 10 moves greater than 5% over the last year. But moves this big are rare even for Stride and indicate this news significantly impacted the market’s perception of the business.
Stride is up 39.6% since the beginning of the year, and at $148.50 per share, it is trading close to its 52-week high of $160.72 from May 2025. Investors who bought $1,000 worth of Stride’s shares 5 years ago would now be looking at an investment worth $3,009.
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