Stride (NYSE: LRN) shares are soaring 5.05% in Thursday's intraday trading session, fueled by the company's impressive third-quarter 2025 financial results and a target price upgrade from BMO Capital Markets.
The education technology company reported robust Q3 2025 earnings, with revenue climbing 18% year-over-year to $613.4 million, surpassing analyst estimates by 3.9%. Net income surged 43% to $99.3 million, translating to earnings per share (EPS) of $2.31, up from $1.63 in the same quarter last year. Stride's profit margin also improved, rising from 13% to 16%, driven by the higher revenue.
Adding to the positive sentiment, BMO Capital Markets raised its target price for Stride from $139 to $161, reflecting growing confidence in the company's future prospects. This upgrade, combined with the strong financial performance, has likely contributed to the significant stock price increase. As Stride continues to outpace the average growth forecast for the US Consumer Services industry, investors appear optimistic about the company's trajectory in the evolving education technology landscape.