Stride plunges 50% on guidance cut as $500 M buyback supports rebound
Shares of Stride plunged over 50% after FY26 guidance cut due to platform upgrade issues, compressing its EPS multiple under 10 and stalling growth. The company launched a $500 million share buyback and forecasts a return to double-digit revenue and earnings growth in FY27.
1. FY26 Guidance Cut and Platform Issues
Shares plunged over 50% after the company cut its FY26 revenue and earnings guidance due to delays and challenges in implementing its core platform upgrade, which compressed the EPS multiple below 10 and raised concerns about near-term growth.
2. Share Buyback Program
Stride has launched a $500 million share repurchase program to support its share price and signal management confidence; this buyback, combined with normalized withdrawal rates, underpins a thesis for recovery in stock valuation.
3. Virtual School Enrollment Expansion
Enrollment opened for the 2026–27 school year in three K12-powered online public schools in Colorado—Colorado Preparatory Academy (K–12), Destinations Career Academy (4–12) and Pikes Peak Online School (9–12)—expanding the company’s virtual education footprint with state-certified teachers and career pathways.