TAL Education Group (NYSE:TAL) Announces Quarterly Earnings Results

TAL Education Group (NYSE:TAL) issued its quarterly earnings results on Thursday. The company reported $0.23 EPS for the quarter, beating the consensus estimate of $0.04 by $0.19, Zacks reports. TAL Education Group had a net margin of 6.45% and a return on equity of 4.71%.

Here are the key takeaways from TAL Education Group’s conference call:

• Q3 net revenues rose 27% YoY to $770.2M (CNY 5,480.4M), with non-GAAP operating income of $104.0M and non-GAAP net income of $141.4M, indicating strong top-line recovery.
• Gross profit increased 35% YoY and gross margin expanded to 56.1%, with income from operations turning positive at $93.1M versus a loss a year ago, helped by disciplined cost and marketing control.
• The learning device business delivered volume growth and high engagement (~80% weekly active, ~1 hour/day) but remains in an investment phase with an adjusted operating loss, a blended ASP below CNY 4,000, and an uncertain break-even timeline.
• Strong liquidity and shareholder support: $2.15B cash & equivalents plus a board-authorized $600M share repurchase program (?$27.7M repurchased to date) provide financial flexibility.
• Management flagged potential near-term variability and limited visibility—expecting moderated YoY growth in H2 FY26—due to seasonal demand shifts, competitive pressures, and deliberate resource reallocation for long-term initiatives.

TAL Education Group Price Performance

TAL traded up $1.35 during midday trading on Thursday, reaching $12.11. 8,802,802 shares of the company’s stock were exchanged, compared to its average volume of 3,872,507. The business’s 50-day moving average price is $11.13 and its 200 day moving average price is $11.11. TAL Education Group has a 1-year low of $8.50 and a 1-year high of $15.30. The stock has a market capitalization of $7.37 billion, a PE ratio of 41.95, a P/E/G ratio of 0.66 and a beta of 0.06.

Analysts Set New Price Targets

Several equities research analysts recently weighed in on the company. Zacks Research downgraded TAL Education Group from a “strong-buy” rating to a “hold” rating in a report on Monday, December 29th. JPMorgan Chase & Co. raised TAL Education Group from a “neutral” rating to an “overweight” rating and set a $16.00 target price for the company in a research report on Thursday, October 30th. Weiss Ratings reiterated a “hold (c)” rating on shares of TAL Education Group in a research note on Monday, December 29th. Finally, Wall Street Zen downgraded shares of TAL Education Group from a “buy” rating to a “hold” rating in a research note on Saturday, January 17th. One analyst has rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $12.81.

Institutional Trading of TAL Education Group

Large investors have recently made changes to their positions in the stock. Quarry LP acquired a new stake in shares of TAL Education Group during the 3rd quarter worth about $42,000. Brooklyn Investment Group lifted its stake in shares of TAL Education Group by 386.0% during the 3rd quarter. Brooklyn Investment Group now owns 11,080 shares of the company’s stock worth $124,000 after purchasing an additional 8,800 shares during the period. Prelude Capital Management LLC acquired a new stake in shares of TAL Education Group during the third quarter worth $142,000. Dark Forest Capital Management LP purchased a new stake in shares of TAL Education Group in the third quarter valued at $166,000. Finally, Credit Agricole S A acquired a new position in TAL Education Group in the third quarter valued at $183,000. Institutional investors and hedge funds own 37.79% of the company’s stock.

TAL Education Group Company Profile

TAL Education Group is a leading provider of after-school tutoring services in China, specializing in K-12 academic instruction. The company offers a range of programs designed to help primary and secondary school students strengthen their core competencies in subjects such as mathematics, English, Chinese language and science. TAL leverages both in-person learning centers and digital platforms to deliver its curriculum, aiming to support student progress through interactive lessons and personalized study plans.

Founded in 2003 and headquartered in Beijing, TAL Education Group has grown into one of China’s largest private education firms.