Coursera Q3 revenue nearly doubles, beating estimates on enterprise segment jump

Overview

• US online learning platform's Q3 revenue rose 94% yr/yr, beating analyst expectations

• Non-GAAP net income for Q3 climbed 242% yr/yr

• Company repurchased $102 mln in shares during Q3

Outlook

• Coursera sees Q4 2026 revenue between $358 mln and $366 mln

• Company expects Q4 2026 adjusted EBITDA of $55 mln to $59 mln

• Coursera narrows 2026 revenue outlook to $1.229 bln-$1.237 bln

Result Drivers

• ENTERPRISE SEGMENT - Co said enterprise revenue rose 214% yr/yr, with gross profit up 267% and margin expanding to 81.3%

• CONSUMER SEGMENT - Consumer revenue grew 35% yr/yr, with gross profit up 45% and margin rising to 65.7%

• SYNERGY EXECUTION - Co said it accelerated integration execution, achieving more than $150 mln in annualized gross cost savings within eight months of the Udemy merger

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the online services peer group is "buy"

• Wall Street's median 12-month price target for Coursera, Inc. is $7.00, about 48.9% above its October 28 closing price of $4.70

• The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 8 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)