Stride Inc. (NYSE: LRN) shares are skyrocketing 16.20% in pre-market trading on Wednesday, following the company's impressive fourth-quarter fiscal 2025 financial results and a positive analyst reaction. This surge builds upon Tuesday's 8.01% gain, reflecting strong investor confidence in the online education provider's performance and future prospects.
Stride reported Q4 revenue of $653.65 million, marking a 22.4% year-over-year increase and surpassing analyst expectations of $626.27 million. The company's adjusted earnings per share (EPS) came in at $2.29, significantly beating the estimated $1.74 and representing a 36.3% increase from the same quarter last year. This robust 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, demonstrating Stride's success in capitalizing on the evolving education landscape.
Adding to the positive sentiment, Morgan Stanley raised its price target on Stride to $159 from $148, while maintaining an Equalweight rating. This adjustment, coupled with the company's ability to exceed expectations and showcase strong growth in its core business segments, has fueled investor optimism. As Stride continues to expand its Career Learning offerings and adapt to the changing needs of the education market, investors appear increasingly confident in the company's future growth potential and market position.