New Oriental Education & Technology Group (NYSE:EDU) Issues Earnings Results

New Oriental Education & Technology Group (NYSE:EDU) announced its earnings results on Wednesday. The company reported $0.45 earnings per share for the quarter, beating analysts’ consensus estimates of $0.34 by $0.11, Briefing.com reports. The business had revenue of $1.19 billion during the quarter, compared to analyst estimates of $1.16 billion. New Oriental Education & Technology Group had a net margin of 7.36% and a return on equity of 10.77%. The company’s quarterly revenue was up 14.7% compared to the same quarter last year. During the same period in the previous year, the business earned $0.22 EPS.

Here are the key takeaways from New Oriental Education & Technology Group’s conference call:

• Strong Q2 results: Total net revenue rose 14.7% YoY to $1.19B, non?GAAP operating income more than tripled to $89.1M and non?GAAP net income increased 68.6%, with non?GAAP operating margin improving over 4 percentage points.
• Upgraded outlook and shareholder returns: Management raised Q3 and full?year FY2026 revenue guidance, declared a $0.12 ordinary dividend (first installment paid) and launched a $300M buyback (?1.6M ADS repurchased for $86.3M so far), supported by a strong cash and liquid asset position.
• New initiatives gaining traction: K?9 and high?school tutoring, non?academic tutoring (+22% YoY), intelligent learning systems/devices and AI/OMO investments are delivering improved retention, scalability and incremental revenue, while East Buy has expanded SKUs, shown early profitability (vending) and is contributing to both sales and margins.
• Overseas?related businesses remain a modest drag—overseas test prep grew only ~4% YoY and study consulting fell ~3%—and management expects overseas growth to be flattish to low single digits in the near term.

New Oriental Education & Technology Group Stock Up 4.7%

NYSE:EDU traded up $2.66 during trading hours on Wednesday, hitting $58.63. 1,068,076 shares of the stock traded hands, compared to its average volume of 737,209. The company has a market cap of $9.26 billion, a price-to-earnings ratio of 25.84, a price-to-earnings-growth ratio of 1.31 and a beta of 0.29. New Oriental Education & Technology Group has a 1 year low of $40.66 and a 1 year high of $63.78. The stock has a 50 day moving average price of $54.72 and a 200 day moving average price of $52.68.

Wall Street Analysts Forecast Growth

Several analysts recently commented on EDU shares. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of New Oriental Education & Technology Group in a report on Monday, December 29th. The Goldman Sachs Group restated a “neutral” rating and set a $60.00 price target on shares of New Oriental Education & Technology Group in a research note on Wednesday, October 29th. Zacks Research upgraded shares of New Oriental Education & Technology Group from a “strong sell” rating to a “hold” rating in a research note on Monday, December 29th. Finally, JPMorgan Chase & Co. upped their target price on shares of New Oriental Education & Technology Group from $60.00 to $68.00 and gave the company an “overweight” rating in a report on Wednesday, October 29th. Three equities research analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $65.30.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Caitong International Asset Management Co. Ltd increased its stake in New Oriental Education & Technology Group by 7,314.3% in the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 519 shares of the company’s stock worth $28,000 after buying an additional 512 shares in the last quarter. Dark Forest Capital Management LP bought a new position in shares of New Oriental Education & Technology Group in the third quarter worth about $220,000. Nomura Holdings Inc. bought a new position in shares of New Oriental Education & Technology Group in the third quarter worth about $746,000. Brooklyn Investment Group grew its position in shares of New Oriental Education & Technology Group by 227.1% during the third quarter. Brooklyn Investment Group now owns 3,820 shares of the company’s stock worth $203,000 after purchasing an additional 2,652 shares in the last quarter. Finally, Two Sigma Investments LP bought a new stake in New Oriental Education & Technology Group during the 3rd quarter valued at approximately $494,000.

About New Oriental Education & Technology Group

New Oriental Education & Technology Group (NYSE: EDU) is one of China’s leading providers of private educational services, specializing in language training, test preparation and consulting for overseas study. The company’s offerings span a range of subjects, including English language instruction, preparatory courses for examinations such as the TOEFL, GRE and GMAT, and K-12 after-school tutoring. New Oriental’s curriculum is delivered through a combination of in-person learning centers and digital platforms, enabling students across various regions to access its educational resources.

Founded in 1993 by Michael Yu Minhong in Beijing, New Oriental began as a small language school and quickly expanded its footprint.