NEW ORIENTAL-S (09901) announced its financial results for the third quarter ended February 28, 2026. Net revenue for the quarter increased by 19.8% year-on-year to $1.4173 billion. Operating profit rose by 44.8% compared to the same period last year, reaching $180.3 million. Net profit attributable to shareholders of New Oriental grew by 45.3% year-on-year to $126.8 million.
For the first nine months ended February 28, 2026, net revenue amounted to $4.1318 billion, representing a 13.0% increase compared to the prior year period. Operating profit was $557.5 million, up 27.6% year-on-year. Net profit attributable to shareholders reached $413 million, marking a 13.3% increase.
Looking ahead, New Oriental provided its forecast for the fourth quarter of fiscal year 2026, spanning from March 1, 2026, to May 31, 2026. The company expects net revenue to be in the range of $1.4296 billion to $1.4669 billion, representing a year-on-year growth rate of 15% to 18%. Driven by robust growth across its various business lines, New Oriental has also raised its full fiscal year 2026 net revenue guidance. For the period from June 1, 2025, to May 31, 2026, net revenue is now projected to be between $5.5614 billion and $5.5987 billion, implying a year-on-year growth rate of 13% to 14%.
Michael Yu, Executive Chairman of the Board of New Oriental, commented, "We are pleased to announce that revenue growth continued to accelerate in the third quarter of fiscal year 2026 compared to the same period last year. Revenue from our overseas test preparation business increased by approximately 7.4%. Furthermore, our domestic test preparation services for adults and university students grew by about 14.5% year-on-year, while our new education initiatives also saw a year-on-year increase of approximately 23.3%. During the quarter, our non-academic tutoring programs were launched in approximately 60 cities, attracting around 458,000 student enrollments. Concurrently, our smart learning systems and devices have been deployed in about 60 cities, serving approximately 367,000 active paying users. We are further focusing on our core businesses, prioritizing the enhancement of teaching standards and product quality. We are also optimizing our cost structure and operational efficiency to drive high-quality, efficient, and sustainable growth. We have established a comprehensive, cross-departmental customer service system, currently serving over 330,000 families in 12 cities. This infrastructure not only strengthens customer loyalty and retention, unlocks cross-selling potential, and maximizes customer lifetime value but also reduces customer acquisition and marketing costs. We remain committed to enhancing our brand influence and creating long-term value for our customers and shareholders."
Steven Chou, Chief Executive Officer of New Oriental, stated, "During the fiscal quarter, we continued to execute a disciplined capacity expansion strategy, balancing revenue growth with operational efficiency. As part of our ongoing commitment, we further strengthened our OMO teaching system and deepened the integration of artificial intelligence across our educational ecosystem. This quarter, we made significant progress in leveraging AI, including embedding it into existing educational products, optimizing AI-driven offerings, and utilizing AI to enhance operational efficiency and support our teaching teams. Additionally, East Buy remains dedicated to providing high-quality products and exceptional services to Chinese families. We have established multiple livestreaming accounts on the Douyin platform, creating a comprehensive multi-account matrix with core accounts such as East Buy Home, East Buy Fruits & Vegetables, and East Buy Nutrition & Health, extending into other vertical channels. We have also optimized livestreaming content and introduced innovative initiatives like anchor recruitment campaigns and supplier conferences. East Buy will continue to advance its self-owned brand development, membership ecosystem, offline expansion, and operational efficiency improvements to drive sustainable long-term growth."
Louis Yang, Executive President and Chief Financial Officer of New Oriental, noted, "We are encouraged by the continued year-on-year improvement in our non-GAAP operating margin this quarter. This was primarily attributable to enhanced operational efficiency in our educational businesses and improved utilization rates. Our non-GAAP operating margin for the quarter was 14.3%, an increase of 230 basis points compared to the same period last year. Looking forward, we will remain committed to executing the ongoing cost control and efficiency enhancement measures across our key business lines. Targeted structural optimization not only reduces fixed costs but also drives higher operational efficiency, steadily improving our operating margin and laying a solid foundation for sustainable profit growth."
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