| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 61 | 18.2x | 17.8x | Around median | |
Growth | 48 | 7.0% | 7.1% | Around median | |
Quality | 89 | 25.4% | 4.5% | Top tier | |
Safety | 92 | — | 2.6x | Top tier | |
Capital Return | 81 | — | 2.12% | Top tier | |
Momentum | 25 | -27.3% | 2.9% | Bottom tier | |
Sentiment | 24 | 1 | 3 | Bottom tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Grand Canyon Education provides technology, academic, and operational services to its university partners, foremost among them Grand Canyon University, and generates revenue from service fees linked to enrollment and tuition. Its ecosystem operates through three main platforms: online education at GCU, the traditional campus, and hybrid classroom and laboratory sites, particularly for nursing and healthcare programs. In Q2 fiscal 2026, total university partner enrollment increased 7.6%, GCU online enrollment rose 7.8%, while enrollment at hybrid sites, excluding closed or teach-out sites, increased 18.5%.
In Q2 fiscal 2026, service revenue increased 6.7% to $264.0 million, compared with $247.5 million in Q2 fiscal 2025. Operating income was $58.2 million, and the operating margin expanded to 22.0% from 20.9%, while net income reached $45.9 million and GAAP diluted earnings per share reached $1.75; accordingly, the net income margin calculated from these figures was approximately 17.4%. Adjusted earnings per share were $1.81, exceeding analyst consensus by $0.14, with results benefiting from the early recognition in Q2 fiscal 2026 of approximately $1 million in revenue from Q3 fiscal 2026.
Annual data reflect the continued strength of the high-profitability model; in fiscal 2025, the company recorded revenue of $1.1 billion, net income of $216.2 million, and earnings per share of $7.71. As of June 30, 2026, the company held $274.5 million in cash and unrestricted investments and spent $10.7 million on capital expenditures during Q2 fiscal 2026. It also repurchased 471 thousand shares for $75.3 million during that quarter, followed by an additional 169 thousand shares after June 30, 2026, with $124.1 million remaining under the repurchase authorization announced on the July 30, 2026 call.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $161.67, within a wide range of $100 to $200, and even the highest target remains below the 52-week high of $223.04. The Buy consensus reflects support for enrollment growth and share repurchase expectations, but the wide target range and its average being clearly below the 52-week high indicate meaningful disagreement regarding the impact of the GCU agreement, student acquisition pressures, and the ability to expand hybrid sites. This divergence should be weighed against Q2 fiscal 2026 revenue growth of 6.7% and operating margin expansion to 22.0%.
Figures in the text are as of 2026-08-31; the live price is shown at the top of the page.
The company generates service revenue by supporting its university partners through online education, the traditional campus, and hybrid classroom and laboratory sites. In Q2 fiscal 2026, service revenue was $264.0 million, up 6.7% year over year. Growth was supported by a 7.6% increase in total partner enrollment, a 7.8% increase in GCU online enrollment, and an 18.5% increase in adjusted hybrid site enrollment. Since July 1, 2026, the amended GCU agreement has calculated the company's fees at 60% of tuition and academic fees only.
The company entered into the amended agreement on July 29, 2026, effective as of July 1, 2026, with an initial term extending through June 30, 2041. The agreement eliminated GCU's ability to terminate for convenience, but it restructured fees and excluded additional fees and other revenue from Grand Canyon Education's revenue-share base. The company expects the amendment to reduce its revenue by approximately $20 million annually. In return, it expects the reduction in operating income not to exceed $1 million per quarter due to the elimination of reimbursement for certain academic costs.
Management acknowledged on the July 30, 2026 call that web-generated leads had declined as some searches shifted to artificial intelligence tools. However, more than 32% of GCU students come through an external development team that works directly with more than 6,000 organizations, reducing reliance on digital leads. In addition, more than 70% of GCU online students study in programs that lead to professional licensure in fields such as nursing, counseling, and social work. In Q2 fiscal 2026, total GCU online enrollment increased 7.8% despite this shift.
Hybrid site enrollment reached approximately 6,000 students across 47 sites as of June 30, 2026, with the sites operating at slightly more than 60% of capacity. Revenue per hybrid student is more than three times revenue per online student, and hybrid enrollment increased 8.5% year over year in Q2 fiscal 2026. The company is targeting 80 sites and approximately 600 students per site, increasing capacity to just under 50 thousand students. However, 14 sites were at or near capacity, and expanding some sites requires local regulatory approvals.
Sheila and Mike Ingram Honors College is targeting an increase in its student count from 3,000 to 3,500 in fall 2026, followed by 7,000 students by 2030. The first full year for the College of Construction and Industrial Technologies begins in September 2026, with two bachelor's degree programs and 11 certificate programs in advanced manufacturing, construction, and chip technology. GCU plans to open a law school in fall 2027, with 3+2 and 3+3 pathways to support pre-law enrollment. Management believes these pathways will help the traditional campus, which has just under 25 thousand students, move closer over the long term to its target of 50 thousand students.
Operating income was $58.2 million in Q2 fiscal 2026, and the operating margin increased to 22.0% from 20.9% in the comparable quarter. Net income reached $45.9 million and GAAP diluted earnings per share reached $1.75, while adjusted earnings were $1.81 and exceeded consensus by $0.14. As of June 30, 2026, cash and unrestricted investments totaled $274.5 million. The company spent $75.3 million to repurchase 471 thousand shares during the quarter, while expecting capital expenditures of between $30 million and $35 million during fiscal 2026.
