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

Laureate Education (NASDAQ:LAUR) announced its quarterly earnings data on Thursday. The company reported $1.00 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.96 by $0.04, Briefing.com reports. Laureate Education had a net margin of 16.08% and a return on equity of 22.07%. The business’s quarterly revenue was up 17.5% on a year-over-year basis. During the same period in the prior year, the business earned $0.79 EPS. 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 Stock Performance

LAUR stock remained flat at $38.41 during midday trading on Thursday. The company had a trading volume of 1,401,055 shares, compared to its average volume of 1,011,784. Laureate Education has a 52-week low of $21.53 and a 52-week high of $40.93. The company has a quick ratio of 0.57, a current ratio of 0.57 and a debt-to-equity ratio of 0.15. The stock’s 50 day simple moving average is $36.40 and its 200-day simple moving average is $34.65. The firm has a market capitalization of $5.38 billion, a price-to-earnings ratio of 20.22, a price-to-earnings-growth ratio of 1.23 and a beta of 0.40.

Laureate Education News Roundup

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

• Positive Sentiment: Second-quarter adjusted earnings were $1.00 per share, exceeding the $0.96 consensus estimate and rising from $0.79 a year earlier. Revenue increased 17% to $615.9 million, while net income rose 40% to $137.1 million. Laureate Education Q2 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Operating momentum was broad-based: adjusted EBITDA increased 17% to $250.6 million, new enrollments rose 10%, and total enrollments grew 6% to 501,400 students. Management expects enrollment growth of 4%-5% for 2026. Laureate Education Reports Financial Results
• Positive Sentiment: Laureate raised its full-year outlook and expanded its share-repurchase authorization by $150 million, after buying back approximately $76 million of stock during the first half. The larger buyback supports per-share earnings and signals confidence in its balance sheet.
• Positive Sentiment: The company announced a three-year agreement with Google Cloud to expand AI infrastructure, digital learning, and career programs across its Mexican and Peruvian universities, potentially strengthening long-term competitiveness. Laureate Education AI-Powered Learning Partnership
• Neutral Sentiment: Reported growth benefited from favorable foreign-exchange movements. On a constant-currency basis, second-quarter revenue grew 8%, and first-half revenue grew 6%; roughly $9 million of first-half revenue and EBITDA was deferred by academic-calendar timing and is expected to shift into the second half.
• Negative Sentiment: Full-year adjusted EPS guidance of $2.04-$2.10 was below the $2.13 consensus estimate. Third-quarter revenue guidance of $471-$476 million also trailed the $481 million consensus, creating a potential overhang despite the improved annual outlook.
• Negative Sentiment: Gross debt increased to $223.2 million, although net debt remained relatively modest at $61.5 million. Recent insider activity also showed sales without reported purchases, which may temper sentiment.

Hedge Funds Weigh In On Laureate Education

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Goldman Sachs Group Inc. increased its stake in Laureate Education by 55.7% in the fourth quarter. Goldman Sachs Group Inc. now owns 2,266,565 shares of the company’s stock valued at $76,315,000 after acquiring an additional 811,108 shares during the period. Qube Research & Technologies Ltd grew its stake in shares of Laureate Education by 113.8% in the 2nd quarter. Qube Research & Technologies Ltd now owns 1,288,851 shares of the company’s stock valued at $30,133,000 after purchasing an additional 685,998 shares during the period. Renaissance Technologies LLC raised its holdings in shares of Laureate Education by 3,193.9% in the 4th quarter. Renaissance Technologies LLC now owns 596,200 shares of the company’s stock worth $20,074,000 after buying an additional 578,100 shares in the last quarter. UBS Group AG lifted its position in shares of Laureate Education by 331.1% during the 3rd quarter. UBS Group AG now owns 572,640 shares of the company’s stock worth $18,061,000 after buying an additional 439,819 shares during the period. Finally, Marshall Wace LLP boosted its stake in Laureate Education by 2,582.3% in the 3rd quarter. Marshall Wace LLP now owns 338,370 shares of the company’s stock valued at $10,672,000 after buying an additional 325,755 shares in the last quarter. 96.27% of the stock is owned by institutional investors.

Analyst Ratings Changes

Several research firms recently commented on LAUR. JPMorgan Chase & Co. cut their target price on shares of Laureate Education from $41.50 to $41.00 and set an “overweight” rating for the company in a research note on Thursday, June 4th. Barrington Research initiated coverage on shares of Laureate Education in a report on Thursday, July 23rd. They set an “outperform” rating and a $45.00 price objective on the stock. Zacks Research lowered shares of Laureate Education from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, April 29th. Weiss Ratings upgraded shares of Laureate Education from a “buy (b-)” rating to a “buy (b)” rating in a research note on Thursday, July 2nd. Finally, UBS Group increased their target price on shares of Laureate Education from $37.50 to $39.00 and gave the company a “buy” rating in a research note on Friday, May 1st. Five research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $40.50.

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.