Strayer Education (STRA) Stock Forecast & Price Target

Strategic Education Inc. demonstrated notable financial growth, with adjusted diluted earnings per share increasing 41.3% year-over-year to $1.64, indicating strong profitability. Revenue also saw a 5.1% rise in the third quarter, reaching $321.7 million, driven largely by a significant 8.6% increase in employer-affiliated enrollment, which now represents a record 32.7% of U.S. Higher Education's total enrollment. Additionally, the free cash flow increased to $127.0 million, a 2.3% improvement, reflecting the company's healthy financial management and ongoing investment in key growth areas such as its direct-to-consumer platform, which achieved a remarkable 42.2% revenue growth.

Strategic Education Inc. has experienced a decline in total student enrollment, decreasing 2.1% year-over-year to 18,808, which represents a concerning trend in unaffiliated enrollment that has fallen for four consecutive quarters. Additionally, the U.S. Higher Education (USHE) segment reported a 15.9% decrease in operating income to $12.5 million, coupled with a negative growth outlook for enrollment in at least the first half of 2026, attributed to weakened demand in Strayer’s Business/IT-focused programs. Furthermore, revenue from the Australia/New Zealand segment has also declined by 4.7%, indicating broader challenges across the company’s international operations, while the stock continues to trade at a discount to its historical averages and peer group despite poor financial performance.