GET DAILY SIGNALSCoursera (COUR) Posts Q3 Revenue Jump of +94% After Udemy Integration
Key Takeaways
- Revenue reached $376.7 million, up 94% year over year, beating the consensus estimate of $368.5 million.
- Adjusted earnings per share (EPS) came in at $0.21, above the $0.18 analysts expected.
- Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) was $61.5 million, topping the $54.99 million consensus.
- Fourth-quarter revenue guidance of roughly $362 million at the midpoint fell short of the $372 million consensus, weighing on the stock.
- GAAP (Generally Accepted Accounting Principles) net loss widened to $25.6 million, from $8.6 million a year earlier, partly reflecting Udemy integration costs.
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Why These Results Matter
Coursera's third-quarter 2026 results represent the first full period following its business combination with Udemy in May 2026. This makes the report an important checkpoint for assessing how the integration is affecting growth and profitability. The 94% revenue increase largely reflects Udemy's contribution, yet the quarter also highlighted investor questions around the deal's longer-term synergies. Enterprise revenue rose 214%, and management continues to advance "Project Helix," its AI-native skills platform. At the same time, softer fourth-quarter guidance shifted focus toward near-term execution.
Breaking Down the Reported Numbers
Coursera reported third-quarter revenue of $376.7 million, up 94% from $194.2 million a year earlier and roughly 2.2% above the $368.5 million consensus. Adjusted EPS reached $0.21, about 16.9% above the $0.18 estimate, while adjusted EBITDA of $61.5 million exceeded the $54.99 million consensus by approximately 11.8%. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Enterprise revenue climbed to $200.9 million (up 214% year over year), and Consumer revenue reached $175.8 million (up 35%). GAAP gross margin improved to 58.4% from 54.6%. On a GAAP basis, the net loss widened to $25.6 million, or $0.10 per share, from $8.6 million a year earlier, in part due to merger, integration, and restructuring costs.
Guidance came in below expectations. Coursera guided fourth-quarter revenue to a range of $358 million to $366 million (about $362 million at the midpoint), below the $372 million consensus, and narrowed its full-year 2026 revenue outlook to approximately $1.23 billion to $1.24 billion. Free cash flow was $4.6 million, down 83% from $26.6 million a year ago, while paid subscribers grew 30% to 1.687 million.
Market Reaction to the Report
Despite the top- and bottom-line beat, Coursera shares fell roughly 8% to about $4.27 right after the release. Investors appeared to focus on the softer fourth-quarter revenue and EBITDA guidance. The reaction shows how much the market is prioritizing forward visibility for the newly combined company. The guidance shortfall, centered on a midpoint below consensus, suggested that Udemy-driven growth may not fully offset near-term pressures in the Consumer segment. Strong enterprise momentum and the improved gross margin were positives, yet cautious sentiment prevailed heading into year-end.
What I’m Watching in the Quarters Ahead
Several factors will be important to monitor. The first is the pace of Udemy integration and the delivery of announced cost and revenue synergies, which management has linked to its full-year outlook. Updates on run-rate synergies will likely face close scrutiny given the weaker fourth-quarter guidance.
Second is the rollout of Project Helix, Coursera’s AI-native skills platform, which the company expects to make broadly available to enterprise customers in the first half of 2027. Its commercial adoption will test whether Coursera can meet rising enterprise demand for AI-related workforce training.
Third, margin trends and free cash flow merit attention, especially after the sharp year-over-year decline tied to merger-related costs. The durability of gross-margin expansion will matter as the company balances growth investments with a path to sustained profitability. Finally, Consumer segment dynamics, including one-time purchases and funnel indicators, remain worth tracking since subscriptions now represent nearly 90% of revenue.
AI Tools That Support My Research
In my analysis, I often turn to Tickeron’s AI Screener to quickly filter stocks by technical patterns, fundamentals, and performance metrics. It helps place individual earnings reports into broader industry context without manual effort, which I find useful when evaluating post-merger updates like Coursera’s.
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
COUR sees MACD Histogram just turned negative
COUR saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on October 28, 2026. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 49 instances where the indicator turned negative. In 42 of the 49 cases the stock moved lower in the days that followed. This puts the odds of a downward move at 86%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 16, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on COUR as a result. In 69 of 83 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 83%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where COUR declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 83%.
The Aroon Indicator for COUR entered a downward trend on October 08, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where COUR's RSI Indicator exited the oversold zone, 27 of 40 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 68%.
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
Following a +2.21% 3-day Advance, the price is estimated to grow further. Considering data from situations where COUR advanced for three days, in 211 of 281 cases, the price rose further within the following month. The odds of a continued upward trend are 75%.
COUR may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 23 (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.065) is normal, around the industry mean (1.308). P/E Ratio (-6.620) is within average values for comparable stocks, (9.677). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (1.327). Dividend Yield (0.000) settles around the average of (3.311) among similar stocks. P/S Ratio (1.087) is also within normal values, averaging (27.566).
The Tickeron PE Growth Rating for this company is 27 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 63 (best 1 - 100 worst), indicating steady price growth. COUR’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 94 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. COUR’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 86, placing this stock worse than average.
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