| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 86 | 13.6x | 17.8x | Top tier | |
Growth | 58 | 3.5% | 7.1% | Around median | |
Quality | 65 | 7.4% | 4.5% | Around median | |
Safety | 86 | — | 2.6x | Top tier | |
Capital Return | 65 | 2.94% | 2.12% | Around median | |
Momentum | 63 | 4.6% | 2.9% | Around median | |
Sentiment | 50 | 2 | 3 | Around median |
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.
Strategic Education, Inc. operates through three main segments: U.S. higher education, education technology services, and Australia and New Zealand operations. Its ecosystem includes Strayer and Capella universities, the Sophia Learning platform, and the Workforce Edge channel, which connects education programs with employers; in Q2 fiscal 2026, Workforce Edge covered four million employees through 81 corporate agreements and directed approximately 4,000 students to Strayer or Capella.
According to EDGAR filings, the company recorded revenue of $337.3 million, net income of $37.2 million, and earnings per share of $1.71 in Q2 fiscal 2026, compared with revenue of $305.9 million, net income of $32.8 million, and earnings per share of $1.48 in Q1 fiscal 2026. For the twelve months ended in fiscal 2026, revenue reached $1.3 billion, net income was $134.5 million, and earnings per share were approximately $6.19, compared with net income of $126.6 million and earnings per share of $5.41 in fiscal 2025.
On the adjusted, constant-currency basis presented by management during the July 29, 2026 call, Q2 fiscal 2026 revenue increased approximately 3% to $330 million, operating income rose 9% to $53 million, and operating margin improved by 90 basis points to 16%. Excluding the nonrecurring $13 million Australia provision, management said operating income would have increased 35% and the margin would have reached 20%; the education technology services segment also achieved 15% revenue growth to $42 million and now represents nearly 40% of consolidated operating income.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus is “Buy,” with an average price target of $92 and a wide range of $80 to $105; the average is slightly above the 52-week range high of $89.73, while the highest target is clearly above that high. Conversely, the lowest target is close to the lower portion of the $69.70–$89.73 52-week range, reflecting risks from the slowdown in Australia and the labor case, and the data does not include a usable price-to-earnings multiple for additional valuation.
Figures in the text are as of 2026-09-01; the live price is shown at the top of the page.
STRA's operations consist of U.S. higher education, education technology services, and Australia and New Zealand. According to EDGAR, the company recorded revenue of $337.3 million in Q2 fiscal 2026, while management presented adjusted, constant-currency revenue of $330 million. Within the mix, the education technology services segment generated $42 million, Australia and New Zealand recorded $67 million, and U.S. higher education revenue increased 2%.
Sophia Learning increased its revenue 27% to $21 million in Q2 fiscal 2026, with 32% growth in average total subscribers. Workforce Edge had 81 corporate agreements covering four million employees. The number of Workforce Edge students transitioning to Strayer or Capella also increased 21% to approximately 4,000 students, and management said this channel incurs virtually no student acquisition cost.
Healthcare program enrollment grew 11% in Q2 fiscal 2026 and now represents 52% of total U.S. higher education enrollment. During the same period, employer-affiliated enrollment reached a record 35% of total U.S. enrollment. Capella also launched its BSN Prelicensure program during the quarter, and the program enrolled its first cohort in July 2026.
The case concerns whether time spent grading student work is included in adjunct faculty contracts or warrants separate compensation. The initial court upheld Torrens's interpretation, but the Court of Appeal overturned that ruling and determined that separate compensation was required, prompting the company to appeal to the High Court of Australia. Strategic Education established a $13 million provision in Q2 fiscal 2026 and said it adjusted its teaching model so that it does not expect an increase in instructional expenses as a result of the change.
Total enrollment in Australia and New Zealand declined 5%, and revenue fell slightly less than 3% to $67 million in Q2 fiscal 2026. Conversely, management said on July 29, 2026 that new domestic student growth was approaching double digits, but it did not offset weakness in international students and slow visa processing. Assuming domestic demand remains strong, management expected the segment to return to growth in the first part of fiscal 2027, while the timing of the recovery remains sensitive to visa approvals.
According to EDGAR, net income was approximately $37.2 million and earnings per share were $1.71 in Q2 fiscal 2026, compared with net income of $32.8 million and earnings per share of $1.48 in Q1 fiscal 2026. On the adjusted basis presented by management, earnings per share increased 16% to $1.76, and operating income rose 9% to $53 million. Year-to-date operating cash flow also increased 18% to $117 million, and the company repurchased approximately 421,000 shares for $33 million during the quarter.
