Laureate Education (NASDAQ:LAUR) Issues Quarterly Earnings Results, Beats Estimates By $0.04 EPS

Laureate Education (NASDAQ:LAUR) issued its earnings results on Thursday. The company reported $1.00 EPS for the quarter, beating the consensus estimate of $0.96 by $0.04, Briefing.com reports. Laureate Education had a return on equity of 22.07% and a net margin of 16.08%.The business had revenue of $615.90 million for the quarter, compared to the consensus estimate of $607.56 million. During the same period last year, the business posted $0.79 EPS. The company’s revenue was up 17.5% compared to the same quarter last year. Laureate Education updated its FY 2026 guidance to 2.040-2.100 EPS.

Here are the key takeaways from Laureate Education’s conference call:

• Strong first-half execution drove 10% growth in new enrollments, 6% growth in total enrollments, and 7% revenue growth on a timing-adjusted, constant-currency basis. Second-quarter revenue reached $616 million and adjusted EBITDA was $251 million, both ahead of prior guidance.
• Laureate raised its 2026 outlook, increasing midpoint guidance by $28 million for revenue, $8 million for adjusted EBITDA, and $0.03 for adjusted EPS. The company now expects $1.920–$1.930 billion of revenue, $593–$599 million of adjusted EBITDA, and $2.04–$2.10 of adjusted EPS.
• The company announced a $150 million increase to its share-repurchase authorization after buying back $181 million of stock through June. Management cited strong free cash flow, a cash-accretive model, and a solid balance sheet, which ended the quarter with $61 million of net debt.
• Laureate highlighted multiple growth avenues, including expanding fully online programs for working adults, improving student retention through digital tools and AI tutoring, and opening new campuses. Puebla is ramping in Mexico, while campuses in southern Lima and Mérida are planned for 2027, with additional opportunities under development.
• Mexico’s year-to-date adjusted EBITDA declined 2% because of investments and the Puebla campus ramp-up, although management expects margin accretion in the second half. Executives also noted that the growing mix of lower-priced online programs creates a price-mix headwind, even as online offerings provide attractive contribution margins and higher returns on invested capital.

Laureate Education Price Performance

Shares of LAUR stock traded down $0.15 during mid-day trading on Friday, hitting $38.26. The company had a trading volume of 362,451 shares, compared to its average volume of 1,428,852. The company has a market capitalization of $5.36 billion, a P/E ratio of 20.19, a P/E/G ratio of 1.23 and a beta of 0.40. The stock’s 50 day moving average price is $36.40 and its 200-day moving average price is $34.65. Laureate Education has a 52-week low of $21.53 and a 52-week high of $40.92. The company has a debt-to-equity ratio of 0.15, a current ratio of 0.57 and a quick ratio of 0.57.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on LAUR. Morgan Stanley cut shares of Laureate Education from an “equal weight” rating to an “underweight” rating and set a $34.50 price objective for the company. in a report on Monday. Weiss Ratings raised Laureate Education from a “buy (b-)” rating to a “buy (b)” rating in a report on Thursday, July 2nd. UBS Group upped their price target on shares of Laureate Education from $37.50 to $39.00 and gave the company a “buy” rating in a research report on Friday, May 1st. Zacks Research downgraded shares of Laureate Education from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, April 29th. Finally, JPMorgan Chase & Co. decreased their price objective on Laureate Education from $41.50 to $41.00 and set an “overweight” rating on the stock in a research note on Thursday, June 4th. Five equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $40.50.

Key Stories Impacting Laureate Education

Here are the key news stories impacting Laureate Education this week:

• Positive Sentiment: Laureate reported second-quarter revenue of $615.9 million, up 17% year over year and ahead of the $607.6 million consensus estimate. Adjusted earnings were $1.00 per share, exceeding expectations of $0.96 and rising from $0.79 a year earlier. Laureate Education Q2 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Operating income increased to $223.4 million from $193.3 million, while net income climbed 40% to $137.1 million. Adjusted EBITDA rose 17% to $250.6 million, indicating strong operating leverage. Laureate Education Reports Financial Results
• Positive Sentiment: Enrollment trends remained favorable: first-half new enrollments increased 10% and total enrollments rose 6%, supported by growth in both Mexico and Peru. Laureate Education Reports Strong Second Quarter Results
• Positive Sentiment: The board authorized an additional $150 million for share repurchases after the company bought back approximately $76 million of stock during the first half, potentially supporting per-share earnings and signaling confidence in the business.
• Neutral Sentiment: Laureate raised its 2026 outlook to revenue of $1.920 billion-$1.930 billion, adjusted EBITDA of $593 million-$599 million and adjusted EPS of $2.04-$2.10. The revenue outlook is slightly above expectations, but the EPS range is below the $2.13 consensus estimate. Laureate Raises Outlook and Expands Buyback
• Negative Sentiment: Third-quarter revenue guidance of $471 million-$476 million trails the $481 million analyst estimate, raising concerns about near-term momentum despite the full-year upgrade.
• Negative Sentiment: First-half revenue and adjusted EBITDA were negatively affected by approximately $9 million from later academic-calendar timing. Management expects the impact to reverse in the second half, but the timing introduces execution risk.
• Negative Sentiment: Gross debt increased to $223.2 million from $127.7 million at year-end 2025, and recent insider activity included three sales with no purchases, factors that may temper investor enthusiasm.

Hedge Funds Weigh In On Laureate Education

Several institutional investors have recently added to or reduced their stakes in the company. Quarry LP bought a new position in shares of Laureate Education during the 4th quarter valued at approximately $29,000. EverSource Wealth Advisors LLC lifted its position in Laureate Education by 328.6% during the second quarter. EverSource Wealth Advisors LLC now owns 1,650 shares of the company’s stock valued at $39,000 after purchasing an additional 1,265 shares during the last quarter. Summit Securities Group LLC bought a new stake in shares of Laureate Education in the 4th quarter worth about $43,000. Mcguire Capital Advisors Inc. purchased a new stake in shares of Laureate Education during the 4th quarter valued at about $100,000. Finally, Canada Pension Plan Investment Board bought a new position in shares of Laureate Education in the 2nd quarter valued at about $108,000. Hedge funds and other institutional investors own 96.27% of the company’s stock.

About Laureate Education

Laureate Education, Inc (NASDAQ: LAUR) is a leading global network of higher education institutions dedicated to providing undergraduate, graduate and certificate programs to a diverse student body. The company designs and delivers academic offerings through a combination of campus-based and online platforms, focusing on fields such as business, health sciences, engineering, education and hospitality management. By aligning its curriculum with regional workforce needs, Laureate aims to equip students with practical skills and industry insights that support career advancement and lifelong learning.

Through its network, Laureate operates a broad portfolio of universities and colleges, including both longstanding campus institutions and digitally native programs.