Udemy (UDMY) Stock Forecast & Price Target

Udemy Inc. demonstrates a positive financial outlook with its Enterprise segment contributing significantly to total revenue, reaching $132.8 million and accounting for 67.9% of overall revenue, driven by strong new customer adoption and large deal activity. The company's annual recurring revenue (ARR) also saw a growth of 5.6% year-over-year to $520 million, reflecting continued demand for its learning solutions. Furthermore, the Consumer segment achieved a notable gross margin expansion, increasing by 300 basis points year-over-year to 57.0%, driven by growth in consumer subscriptions, which indicates a strengthening operational efficiency.

Udemy Inc. has reported a 9.2% year-over-year decline in Consumer revenues for the third quarter, generating $62.9 million, which is slightly above expectations but reflects ongoing challenges in this segment. The company's outlook remains mixed, with projected fourth-quarter revenue guidance falling 3-5% year-over-year, driven by anticipated declines in Consumer revenue and only modest growth in the Enterprise segment. Furthermore, the lowering of fiscal year 2026 and subsequent profitability estimates highlights concerns over revenue growth potential and the impact of transitioning the Consumer business to a subscription model.