Stride Inc. (NYSE: LRN) shares surged 12.09% in pre-market trading on Wednesday, building on the previous day's gains following the release of its stellar fourth-quarter fiscal 2025 financial results. The education technology company's performance significantly exceeded analyst expectations, driving investor enthusiasm.

Stride reported a 22.4% year-over-year increase in Q4 revenue, reaching $653.65 million and surpassing the analyst consensus estimate of $626.27 million. The company's adjusted earnings per share (EPS) came in at $2.29, considerably higher than the expected $1.74 and representing a 36.3% increase from the same quarter last year. This strong performance was primarily driven by a 33.2% growth in Career Learning enrollments and a 13.6% year-over-year increase in General Education revenue.

Adding to the positive sentiment, Morgan Stanley raised its price target on Stride to $159 from $148, maintaining an Equalweight rating. This analyst upgrade, coupled with the company's ability to exceed expectations and demonstrate robust growth in its core business segments, appears to be fueling the continued stock price surge. As Stride capitalizes on the evolving education landscape and expands its Career Learning offerings, investors seem optimistic about its future prospects in the online education market.