New Oriental Reports Strong Q2 FY2026 Financial Results
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: PRnewswire
- 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.
Analyst Views on EDU
Wall Street analysts forecast EDU stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for EDU is 68.00 USD with a low forecast of 60.00 USD and a high forecast of 76.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
2 Buy
1 Hold
0 Sell
Moderate Buy
Current: 55.660
Low
60.00
Averages
68.00
High
76.00
Current: 55.660
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.
