Strayer Education (STRA) Stock Forecast & Price Target

Strategic Education is viewed favorably because its first-quarter results showed resilient demand and improving profitability in key growth engines, especially Education Technology Services, where revenue rose 21% to $41.5 million and adjusted operating income climbed 42.2% with a 47.4% margin. The company also strengthened its balance sheet with $162.6 million in cash and marketable securities, no debt under its $250 million revolver, and strong cash generation as operating cash flow increased 29.1% to $87.4 million and free cash flow rose 34.8% to $77.3 million. Despite a revenue and EPS miss, rising Sophia Learning subscribers, expanding Workforce Edge partnerships, and USHE enrollment above expectations support confidence in the business mix and earnings power.

Strategic Education is facing a bearish fundamental setup because its core U.S. Higher Education business posted a 3.8% revenue decline to $212.6 million and a 14.9% drop in segment operating income, while unaffiliated enrollment fell for a sixth consecutive quarter. The Australia/New Zealand segment adds further pressure, as constant-currency revenue declined 4.0% and management cited slower visa processing and record Australian student visa refusal rates of 32.5% in February 2026, signaling a tougher path back to growth. Even though total enrollment was 106,735 and adjusted EPS rose to $1.42, first-quarter revenue of $305.9 million and adjusted EBITDA of $62.2 million both came in below expectations, reinforcing the view that operating momentum is fragile.