New Oriental Reports Significant Profit Growth in Latest Earnings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 04 2026
0mins
Should l Buy EDU?
Source: Benzinga
- Significant Revenue Growth: New Oriental reported revenue of $1.19 billion for the second quarter ending last November, marking a 14.7% year-on-year increase, indicating a recovery in its education and training businesses despite ongoing market challenges.
- Substantial Profit Increase: The company's operating profit surged to $66.3 million, up 244.4% year-on-year, while net profit rose 42.3% to $45.5 million, demonstrating notable improvements in operational efficiency and resource utilization.
- Strong Performance in New Initiatives: The new education initiatives segment achieved a remarkable 21.6% revenue growth during the period, with non-academic tutoring courses launched in about 60 cities, attracting approximately 1.06 million students, reflecting a rebound in market demand.
- Optimistic Outlook: New Oriental raised its full fiscal year revenue guidance to between $5.3 billion and $5.5 billion, forecasting a year-on-year revenue increase of 11% to 14% for the third fiscal quarter, showcasing management's confidence in continued growth.
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Analyst Views on EDU
Wall Street analysts forecast EDU stock price to rise
3 Analyst Rating
2 Buy
1 Hold
0 Sell
Moderate Buy
Current: 54.690
Low
60.00
Averages
68.00
High
76.00
Current: 54.690
Low
60.00
Averages
68.00
High
76.00
About EDU
New Oriental Education & Technology Group Inc is a holding company principally engaged in the provision of a variety of educational programs, services and products. The Company primarily operates four segments. Educational Services and Test Preparation Courses segment is mainly engaged in the provision of educational services and test preparation courses and online education services. Private Label Products and Livestreaming E-Commerce segment is mainly engaged in the sale of private label products and livestreaming e-commerce business through East Buy. Overseas Study Consulting Services segment mainly helps students through the application and admission process for overseas educational institutions, provides college, graduate and career counseling advice, and counsels and assists students with the immigration process for overseas studies, such as obtaining visas and arranging housing. Other segment is mainly engaged in educational materials and distribution and other businesses.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Earnings Report Schedule: New Oriental Education and Technology Group will release its financial results for the third quarter ended February 28, 2026, before the U.S. market opens on April 22, 2026, providing investors with insights into its financial health and operational performance.
- Conference Call Timing: Management will host an earnings conference call at 8 AM U.S. Eastern Time on April 22, 2026 (8 PM Beijing/Hong Kong Time), aimed at sharing financial results and addressing investor inquiries.
- Participation Method: Investors must register in advance to obtain dial-in numbers and a personal PIN for the conference call, ensuring smooth participation in this crucial financial communication and enhancing interaction with management.
- Webcast Replay Availability: The conference will offer a live and archived webcast, allowing investors to access key information even if they miss the live event, thereby extending the convenience of information retrieval.
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- Earnings Report Schedule: New Oriental Education Group will report its financial results for the third quarter ended February 28, 2026, before the U.S. market opens on April 22, 2026, which is expected to significantly impact investor sentiment.
- Conference Call Timing: Management will host an earnings conference call at 8 AM U.S. Eastern Time on April 22, 2026, providing a direct communication opportunity between investors and management, thereby enhancing transparency.
- Diverse Participation Options: Investors can join the conference by registering in advance to receive dial-in numbers and a personal PIN, or they can participate via a live webcast, ensuring broad dissemination of information and engagement.
- Replay Service: After the call, investors can access a replay of the conference via on-demand webcast, available until April 22, 2027, allowing those who could not attend live to obtain key insights.
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- Significant Revenue Growth: New Oriental reported revenue of $1.19 billion for the second quarter ending last November, marking a 14.7% year-on-year increase, indicating a recovery in its education and training businesses despite ongoing market challenges.
- Substantial Profit Increase: The company's operating profit surged to $66.3 million, up 244.4% year-on-year, while net profit rose 42.3% to $45.5 million, demonstrating notable improvements in operational efficiency and resource utilization.
- Strong Performance in New Initiatives: The new education initiatives segment achieved a remarkable 21.6% revenue growth during the period, with non-academic tutoring courses launched in about 60 cities, attracting approximately 1.06 million students, reflecting a rebound in market demand.
- Optimistic Outlook: New Oriental raised its full fiscal year revenue guidance to between $5.3 billion and $5.5 billion, forecasting a year-on-year revenue increase of 11% to 14% for the third fiscal quarter, showcasing management's confidence in continued growth.
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- Same-Day Delivery Expansion: East Buy is building same-day delivery capabilities in its top 10 markets, allowing customers to receive orders placed before 10:30 a.m. on the same day, which is expected to significantly enhance customer satisfaction and strengthen market competitiveness.
- Financial Recovery: The company announced a return to profitability in its latest financial report, with revenue rising 5.7% year-on-year to 2.31 billion yuan, demonstrating its ability to recover from adversity and attracting investor interest.
- Private Label Growth: East Buy's private label business grew 18.1% in the latest six-month period to 2 billion yuan, accounting for 53% of the company's gross merchandise value, indicating a strategic shift in focus for future growth.
- Increased Market Competition: Despite a 14.2% stock price surge following the report, East Buy faces fierce competition from giants like Alibaba, JD.com, and Meituan, which may limit its near-term growth potential.
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- Earnings Beat: New Oriental Education reported a Q2 non-GAAP EPS of $0.45, exceeding expectations by $0.11, indicating strong profitability and boosting market confidence in its future performance.
- Revenue Growth: The company achieved Q2 revenue of $1.19 billion, a 14.4% year-over-year increase that surpassed market expectations by $30 million, primarily driven by its new educational business initiatives, showcasing effective market expansion strategies.
- Future Outlook: New Oriental expects total net revenues for Q3 of fiscal year 2026 to range between $1.3132 billion and $1.3487 billion, reflecting a year-over-year growth of 11% to 14%, indicating optimism about future growth and solidifying its market position.
- Guidance Upgrade: The company raised its full-year revenue guidance for fiscal year 2026 to between $5.2923 billion and $5.4883 billion, representing an 8% to 12% year-over-year increase, highlighting strong growth potential across various business lines and enhancing investor confidence in its long-term prospects.
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- Significant Revenue Growth: New Oriental reported net revenues of $1.191 billion for Q2 FY2026, reflecting a 14.7% year-over-year increase, primarily driven by the expansion of its new educational business initiatives, indicating strong demand and growth potential in the education market.
- Enhanced Operational Efficiency: The company achieved operating income of $66.3 million, a remarkable 244.4% increase year-over-year, with non-GAAP operating income reaching $89.1 million, up 206.9%, showcasing significant improvements in cost control and operational efficiency.
- Substantial Net Profit Increase: New Oriental's net income for the quarter was $45.5 million, representing a 42.3% year-over-year growth, with net income per ADS at $0.29, highlighting enhanced profitability and increased shareholder returns.
- Shareholder Return Initiatives: The company announced a regular dividend of $0.12 per ADS and initiated a share repurchase program of up to $300 million, aimed at boosting shareholder confidence and enhancing long-term value.
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