Overview
New Oriental Education & Technology Group Inc. (NYSE:EDU) reported its fourth‑quarter 2026 results, showing a 23.0% year‑on‑year increase in revenue to $1.53 billion, surpassing the consensus estimate of $1.46 billion. Adjusted earnings per share (EPS) were $0.55, falling short of the analyst consensus of $0.94 by $0.39. Adjusted operating income rose 34.7% YoY to $110.0 million, and the adjusted operating margin expanded by 60 basis points to 7.2%.
Financial Highlights
Revenue growth was driven by new educational business initiatives, overseas test preparation, and domestic test preparation for adults and university students. One‑time costs related to internal management restructuring were incurred, but margin expansion was achieved through improved operational efficiency and utilization. Deferred revenue at quarter‑end increased 14.8% YoY to $2.24 billion, reflecting strong advance customer payments.
Guidance and Shareholder Returns
For fiscal year 2027, the company projects revenue between $6.45 billion and $6.68 billion, representing 14%‑18% year‑on‑year growth. The midpoint of $6.57 billion implies a 16% increase from fiscal 2026 revenue of $5.66 billion. The board approved a shareholder return program for FY2027 that includes approximately $300 million in cash dividends payable in two installments and a $200 million share repurchase program to be executed over the next 12 months.
Market Reaction
The stock gained 3.52% in pre‑market trading following the earnings release.
Management Comment
Executive Chairman Michael Yu said the company “concludes the final quarter of fiscal year 2026 on a strong note, with continued healthy top line growth of 23.0%.”