New Oriental Education and Technology Group Inc. (NYSE: EDU; SEHK: 9901) announced it will report financial results for the first quarter of fiscal year 2027 on October 28, 2026. The release covers the quarter ended August 31, 2026.

Conference Call Details

Management will host an earnings conference call at 8 am on October 28, 2026, U.S. Eastern Time (8 pm Beijing/Hong Kong Time). Participants must register in advance via the company's investor relations portal to receive dial-in numbers and personal PINs.

A live webcast will be available on the investor relations website. An archived replay will remain accessible for one year following the event.

Company Profile

New Oriental provides private educational services in China. Its offerings include:

• Educational services and test preparation courses
• Private label products and livestreaming e-commerce
• Overseas study consulting services
• Educational materials and distribution

The company is dual-listed on the NYSE and SEHK. ADSs traded on NYSE represent ten common shares each.

New Oriental Education & Technology Group Inc. (NYSE: EDU/ 9901.SEHK) reported fourth-quarter adjusted earnings per share of US$0.55, missing the analyst consensus estimate of US$0.59 by 6.78%. However, the company’s quarterly sales of US$1.530 billion surpassed the consensus estimate of US$1.462 billion by 4.68%, driven by robust growth in domestic test preparation and new educational initiatives. The earnings miss represents a 9.84% decline from the US$0.61 per share reported in the same period last year, highlighting a divergence between top-line momentum and bottom-line profitability relative to market expectations.

The Board of Directors approved an ordinary cash dividend of approximately US$300 million for fiscal year 2027, to be paid in two installments in December 2026 and June 2027. Additionally, the company authorized a new share repurchase program allowing it to buy back up to US$200 million of its ADSs or common shares over the next 12 months. These shareholder return measures complement the previous fiscal year’s payouts, where US$274.0 million was spent on repurchases under the prior program.

Financial Performance Highlights

For the fourth fiscal quarter of 2026, New Oriental generated total net revenues of US$1,529.5 million, up from US$1,243.2 million in the same period of the prior fiscal year. Operating income improved to US$85.8 million from an operating loss of US$8.7 million in the prior-year quarter. Non-GAAP operating income increased 34.7% to US$110.0 million, reflecting enhanced operational efficiency despite one-time costs from internal management restructuring.

Full-year results for fiscal 2026 showed net revenues of US$5,661.3 million, a 15.5% increase from US$4,900.3 million in fiscal 2025. Full-year operating income rose 50.2% to US$643.3 million, while non-GAAP operating margin expanded by 170 basis points to 13.0%. Net income attributable to New Oriental for the full year was US$475.2 million, up 27.8% year over year.

Operational Drivers

Michael Yu, Executive Chairman, attributed the growth to healthy top-line expansion, with overseas test preparation and consulting revenues increasing by approximately 3.6% and domestic test preparation for adults and university students growing by 29.1%. New educational business initiatives also gained traction, rising 24.8% year over year. Non-academic tutoring courses expanded to around 60 cities, attracting approximately 1,072,000 student enrollments, while intelligent learning systems reached about 326,000 active paid users.

Chenggang Zhou, Chief Executive Officer, highlighted the integration of AI into the education ecosystem as a central organizational priority. The company enhanced its OMO teaching system and deployed AI to boost operational efficiency. Meanwhile, East Buy, its e-commerce subsidiary, launched 11 new Douyin vertical accounts and upgraded its live streaming system, supporting its "Three Highs" standards of safety, quality, and cost performance.

What the Numbers Show

A notable divergence exists between GAAP and Non-GAAP metrics in the fourth quarter. While GAAP net income surged 775.8%, Non-GAAP net income attributable to New Oriental declined 10.5% to US$87.8 million. This discrepancy is primarily due to the absence of a US$60.3 million goodwill impairment charge recorded in the same period last year. Excluding this non-recurring item, underlying operational profitability remains robust, with Non-GAAP operating margin improving by 60 basis points to 7.2%. The miss against analyst EPS estimates suggests that while revenue growth exceeded expectations, margin expansion or other income items did not fully offset higher costs or tax impacts anticipated by the market.

Balance Sheet and Cash Flow

As of May 31, 2026, New Oriental held US$1,821.2 million in cash and cash equivalents, along with US$1,366.8 million in term deposits and US$2,372.3 million in short-term investments. Deferred revenue, representing upfront payments from customers, increased 14.8% to US$2,242.9 million, signaling strong future revenue visibility. Net operating cash inflow for the quarter was approximately US$518.7 million, against capital expenditures of US$99.0 million.

Looking ahead, the company forecasts total net revenues for fiscal year 2027 to range between US$6,453.9 million and US$6,680.3 million, representing a year-over-year increase of 14% to 18%. This outlook assumes current USD/RMB exchange rates and reflects management’s confidence in continued execution of its strategic initiatives.