New Oriental Education & Technology (EDU) surged 5.39% during intraday trading on Monday, reflecting investor optimism following the company's robust Q1 FY2026 results and advancements in generative AI applications.
The company reported a 6.1% year-on-year increase in net revenue to US$1.523 billion, with operating profit rising 6.0% to US$311 million. Analysts highlighted improved adjusted operating margins, driven by the strong performance of its subsidiary Oriental Selection. Additionally, New Oriental's AI-powered tools—such as automated course material generation and digital avatars—are expected to enhance operational efficiency and content quality.
Further boosting investor confidence, the company announced a three-year shareholder return plan with a dividend payout ratio of at least 50%, translating to a yield of approximately 2.7% based on FY2025 net profit. This underscores management's commitment to sustained profitability and shareholder value.
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