New Oriental Education Soars 12% After Q4 Revenue Beats Forecasts

Stock News07-29

On Wednesday, New Oriental Education & Technology Group Inc (EDU.US) opened sharply higher and continued to rally, with shares climbing approximately 12% as of press time. This surge follows the company's release of its fourth-quarter financial results for the period ending May 31, 2026.

For the quarter, net revenue increased by 23.0% year-over-year to $1.5295 billion, while operating profit surged 1,089.1% to $85.8 million. Net profit attributable to shareholders skyrocketed 775.8% to $62.2 million. Looking ahead, the company provided guidance for fiscal year 2027 (June 1, 2026 to May 31, 2027), projecting net revenue between approximately $6.454 billion and $6.68 billion, representing a growth rate of 14% to 18% year-over-year.

Key Strategic Initiatives

CEO Zhou Chenggang commented on the results, stating, "During this fiscal quarter, we continued to execute a disciplined capacity expansion strategy. Over the course of the full year, this approach has demonstrated outstanding effectiveness in balancing revenue growth with operational efficiency." He further noted that artificial intelligence has become a core organizational priority, with clear execution pathways and measurable progress in its deployment. The company has strengthened its OMO (Online-Merge-Offline) teaching system and deepened the integration of AI across its education ecosystem—embedding AI into existing products and services, continuously refining AI-driven offerings, and leveraging AI to enhance operational efficiency and support for the teaching team.

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