NEW ORIENTAL-S (09901) announced its financial results for the second quarter of fiscal year 2026, ended November 30, 2025. The Group's net revenue for Q2 FY2026 increased by 14.7% year-on-year to $1.191 billion; operating profit surged by 244.4% to $66.3 million; and net profit attributable to NEW ORIENTAL shareholders rose by 42.3% to $45.5 million. For the first half of fiscal year 2026, net revenue was approximately $2.714 billion, a 9.7% increase year-on-year. Operating profit reached about $377 million, up 20.7% compared to the prior year period. Net profit attributable to NEW ORIENTAL shareholders was approximately $286 million, reflecting a 3.2% growth.
Mr. Yu Minhong, Executive Chairman of the Board of NEW ORIENTAL, stated, "We are pleased to see the company's revenue growth accelerate to 14.7% year-on-year in the second quarter of fiscal 2026. Revenue from the overseas test preparation business increased by approximately 4.1% year-on-year; meanwhile, the domestic test preparation business for adults and university students achieved a growth of about 12.8%, while the new education services business realized a robust 21.6% year-on-year increase. Non-academic tutoring programs have been launched in approximately 60 cities, attracting about 1.058 million students during the quarter. Concurrently, our smart learning systems and devices are now deployed in around 60 cities, with the number of active paying users reaching approximately 352,000. Moving forward, we will further focus on our core educational businesses, continuously enhance teaching quality and product standards, while persistently optimizing our cost structure and operational efficiency to achieve high-quality, high-efficiency, and sustainable development. We have initiated a comprehensive, cross-departmental customer service system which, in the current macroeconomic environment, not only enhances customer loyalty and retention, promotes cross-selling opportunities, but also extends customer lifetime value while reducing customer acquisition costs and marketing expenses. We remain committed to strengthening our brand influence and creating long-term value for our customers and shareholders."
Mr. Zhou Chenggang, Chief Executive Officer of NEW ORIENTAL, commented, "This quarter, while prudently expanding our capacity, we also precisely balanced revenue growth with operational efficiency. We concurrently upgraded our OMO (Online-Merge-Offline) teaching system and continued investing in the integration of AI technology within our educational ecosystem. We are consistently dedicated to deeply embedding artificial intelligence into our existing educational products, continuously optimizing a new suite of AI-powered teaching tools, and expanding AI applications to boost operational effectiveness and strengthen the support system for our teaching staff and employees. During this fiscal quarter, Dongfang Zhenxuan (East Buy), by strengthening product development and its supply chain, successfully expanded from fresh snacks into multiple categories including seafood, health foods, condiments, and home goods. Its proprietary brand product matrix has grown to 801 Stock Keeping Units (SPUs). By catering to market demand for health and convenience, it has effectively driven sales and profit growth while further optimizing the product mix. Simultaneously, leveraging its brand influence and NEW ORIENTAL's solid network advantages, Dongfang Zhenxuan initiated an expansion of its offline channels. Having validated the profitability model of its smart vending machines in pilot cities, Dongfang Zhenxuan will continue to advance the nationwide rollout of this business."
Mr. Yang Zhihui, Executive President and Chief Financial Officer of NEW ORIENTAL, noted, "Amid accelerating revenue growth, we still achieved a significant year-on-year improvement in Non-GAAP operating margin, benefiting from optimized operational efficiency and improved resource utilization within our educational businesses. The Non-GAAP operating margin for the quarter reached 7.5%, an increase of 470 basis points compared to the same period last year. Looking ahead, we will continue to prudently deepen cost and efficiency control measures across all business lines, aiming to lay a solid foundation for more sustainable and profitable growth."
In October 2025, the company announced that, pursuant to a previously approved three-year shareholder return plan, NEW ORIENTAL's Board of Directors had approved a cash dividend of $0.12 per ordinary share (or $1.20 per American Depositary Share), to be distributed in two installments as part of the fiscal year 2026 shareholder returns. As of the date of this announcement, the first installment dividend has been fully distributed to ordinary shareholders and ADS holders, with specific arrangements for the second installment to be implemented and announced in due course. Furthermore, as part of the fiscal year 2026 shareholder return plan, the company also announced in October 2025 the implementation of a share repurchase program, authorizing the repurchase of up to $300 million worth of ADSs or ordinary shares over the next 12 months. As of January 27, 2026, the company had repurchased a total of approximately 1.6 million ADSs from the open market under this program, for a total consideration of approximately $86.3 million.
NEW ORIENTAL expects net revenue for the third quarter of fiscal year 2026 (from December 1, 2025, to February 28, 2026) to be in the range of $1.313 billion to $1.349 billion, representing a year-on-year growth rate of 11% to 14%.
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