The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Laureate Education (NASDAQ: LAUR) and the rest of the consumer discretionary - education services stocks fared in Q4.

The Consumer Discretionary sector, by definition, is made up of companies selling non-essential goods and services. When economic conditions deteriorate or tastes shift, consumers can easily cut back or eliminate these purchases. For long-term investors with five-year holding periods, this creates a structural challenge: the sector is inherently hit-driven, with low switching costs and fickle customers. As a result, only a handful of companies can reliably grow demand and compound earnings over long periods, which is why our bar is high and High Quality ratings are rare. Education services companies provide postsecondary instruction, professional certifications, test preparation, and corporate training, both online and in-person. Tailwinds include lifelong-learning demand driven by rapid technological change, employer-sponsored upskilling programs, and growing acceptance of online credentials. Headwinds are substantial: heavy regulatory oversight—particularly around student-loan eligibility and enrollment practices—can abruptly alter business models. Reputational risk from scrutiny over student outcomes and debt burdens constrains marketing strategies. Competition from free or low-cost digital alternatives (MOOCs, employer-built academies) pressures pricing.

The 7 consumer discretionary - education services stocks we track reported a strong Q4. As a group, revenues beat analysts’ consensus estimates by 2.2% while next quarter’s revenue guidance was 8.5% above.

Luckily, consumer discretionary - education services stocks have performed well with share prices up 11.4% on average since the latest earnings results.

Laureate Education (NASDAQ: LAUR)

Founded in 1998 by Douglas L. Becker and based in Miami, Laureate Education (NASDAQ: LAUR) is a global network of higher education institutions.

Laureate Education reported revenues of $541.4 million, up 27.9% year on year. This print exceeded analysts’ expectations by 2.8%. Overall, it was a very strong quarter for the company with a beat of analysts’ EPS estimates and full-year revenue guidance beating analysts’ expectations.

Eilif Serck-Hanssen, President and Chief Executive Officer, said, “Laureate delivered another strong year of performance in 2025, with sustained revenue growth and expanding margins. Our robust balance sheet and significant free cash flow generation enabled us to continue investing in our long-term growth strategy, including the opening of two new campuses and further innovation in digital and AI capabilities, while returning more than $200 million of excess capital to shareholders through share repurchases. As we enter 2026, we continue to see attractive growth opportunities across our local markets and remain focused on executing our growth agenda while continuing to return excess capital to shareholders.”

Laureate Education achieved the fastest revenue growth but had the weakest full-year guidance update of the whole group. The results were likely priced in, however, and the stock is flat since reporting. It currently trades at $35.07.

Is now the time to buy Laureate Education? Access our full analysis of the earnings results here, it’s free.

Best Q4: Lincoln Educational (NASDAQ: LINC)

Established in 1946, Lincoln Educational (NASDAQ: LINC) is a provider of specialized technical training in the United States, offering career-oriented programs to provide practical skills required in the workforce.

Lincoln Educational reported revenues of $142.9 million, up 19.7% year on year, outperforming analysts’ expectations by 6.9%. The business had an exceptional quarter with full-year revenue guidance exceeding analysts’ expectations and an impressive beat of analysts’ revenue estimates.

Lincoln Educational delivered the biggest analyst estimates beat and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 37% since reporting. It currently trades at $41.08.

Is now the time to buy Lincoln Educational? Access our full analysis of the earnings results here, it’s free.

Weakest Q4: Bright Horizons (NYSE: BFAM)

Founded in 1986, Bright Horizons (NYSE: BFAM) is a global provider of child care, early education, and workforce support solutions.

Bright Horizons reported revenues of $733.7 million, up 8.8% year on year, exceeding analysts’ expectations by 1%. Still, it was a slower quarter as it posted a significant miss of analysts’ adjusted operating income estimates and full-year revenue guidance slightly missing analysts’ expectations.

As expected, the stock is down 2.5% since the results and currently trades at $79.76.

Read our full analysis of Bright Horizons’s results here.

Strategic Education (NASDAQ: STRA)

Formed through the merger of Strayer Education and Capella Education in 2018, Strategic Education (NASDAQ: STRA) is a career-focused higher education provider.

Strategic Education reported revenues of $323.2 million, up 3.8% year on year. This result was in line with analysts’ expectations. It was a very strong quarter as it also put up a beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.

Strategic Education had the slowest revenue growth among its peers. The stock is up 6.4% since reporting and currently trades at $83.45.

Read our full, actionable report on Strategic Education here, it’s free.

Universal Technical Institute (NYSE: UTI)

Founded in 1965, Universal Technical Institute (NYSE: UTI) is a leading provider of technical training programs, specializing in automotive, diesel, collision repair, motorcycle, and marine technicians.

Universal Technical Institute reported revenues of $220.8 million, up 9.6% year on year. This print topped analysts’ expectations by 1.6%. Overall, it was a strong quarter as it also recorded a beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted operating income estimates.

The stock is up 42.3% since reporting and currently trades at $39.64.

Read our full, actionable report on Universal Technical Institute here, it’s free.

Market Update

Late in 2025 into early 2026, there was hand wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure?

These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.