TAL Education Group Q3 Margin Expansion Tests Bearish Valuation Narratives

Simply Wall St.01-31 00:27

TAL Education Group (TAL) just posted its Q3 2026 numbers, with revenue of US$770.2 million and basic EPS of US$0.24, backed by trailing twelve month revenue of US$2.8 billion and EPS of US$0.48. The ...

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The ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/consumer-services/nyse-tal/tal-education-group/news/tal-education-group-q3-margin-expansion-tests-bearish-valuat\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>TAL Education Group Q3 Margin Expansion Tests Bearish Valuation Narratives</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nTAL Education Group Q3 Margin Expansion Tests Bearish Valuation Narratives\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-01-31 00:27 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/consumer-services/nyse-tal/tal-education-group/news/tal-education-group-q3-margin-expansion-tests-bearish-valuat><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>TAL Education Group (TAL) just posted its Q3 2026 numbers, with revenue of US$770.2 million and basic EPS of US$0.24, backed by trailing twelve month revenue of US$2.8 billion and EPS of US$0.48. The ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/consumer-services/nyse-tal/tal-education-group/news/tal-education-group-q3-margin-expansion-tests-bearish-valuat\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4506","symbol_name":"内地教育股","start_time":0,"source_url":"https://simplywall.st/stocks/us/consumer-services/nyse-tal/tal-education-group/news/tal-education-group-q3-margin-expansion-tests-bearish-valuat","article_id":"2607029438","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/3112400-choice2-main-header/1585186895258"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/consumer-services/nyse-tal/tal-education-group/news/tal-education-group-q3-margin-expansion-tests-bearish-valuat","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2607029438","pubTimestamp":1769790452,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"TAL Education Group (TAL) just posted its Q3 2026 numbers, with revenue of US$770.2 million and basic EPS of US$0.24, backed by trailing twelve month revenue of US$2.8 billion and EPS of US$0.48. The company has seen quarterly revenue move from US$606.4 million in Q3 2025 to US$770.2 million in Q3 2026, while basic EPS over that stretch has ranged from US$0.04 in Q3 2025 to US$0.24 in the latest quarter, supported by trailing net income of US$278.7 million. With trailing net margin described...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4506":"内地教育股","TAL":"好未来","BK4531":"中概回港概念","BK4204":"教育服务","LU1880383366.USD":"东方汇理中国股票基金 A2 (C)","BK7016":"应用软件","TAL.AU":"TALIUS GROUP LTD","BK4526":"热门中概股","LU1880383440.USD":"AMUNDI FUNDS CHINA EQUITY \"A2\" (USD) INC","BK4535":"淡马锡持仓","BK4548":"巴美列捷福持仓","BK4510":"在线教育","BK4503":"景林资产持仓"},"translate_title":"好未来教育集团第三季度利润率扩张考验看跌估值叙事","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"TAL":1.5,"TAL.AU":1},"content_text":"TAL Education Group (TAL) just posted its Q3 2026 numbers, with revenue of US$770.2 million and basic EPS of US$0.24, backed by trailing twelve month revenue of US$2.8 billion and EPS of US$0.48. The company has seen quarterly revenue move from US$606.4 million in Q3 2025 to US$770.2 million in Q3 2026, while basic EPS over that stretch has ranged from US$0.04 in Q3 2025 to US$0.24 in the latest quarter, supported by trailing net income of US$278.7 million. With trailing net margin described as higher than a year ago, this set of results puts the focus squarely on how sustainably TAL is converting its top line into profit. See our full analysis for TAL Education Group. With the headline figures on the table, the next step is to see how these results line up with the widely followed stories around TAL, including expectations for growth, profitability and where the market might be getting ahead of itself or not yet giving full credit. Curious how numbers become stories that shape markets? Explore Community Narratives NYSE:TAL Earnings & Revenue History as at Jan 2026 AdvertisementNet margin lifts to 9.9% on trailing basis  On the trailing twelve month numbers, TAL reports US$2.8b of revenue and US$278.7 million of net income, which works out to a 9.9% net margin compared with 5.8% a year earlier in the same data set. What really backs the bullish view on improving profitability is that trailing basic EPS moved from US$0.14 at Q4 2025 to US$0.48 by Q3 2026, while net income on the same basis increased from US$84.6 million to US$278.7 million over that timeframe.\n     Supporters can point to the 133.4% one year earnings growth in the analysis as lining up with this move in trailing EPS. Skeptics, on the other hand, might say that earnings concentrated in a few strong quarters, like Q3 2026 net income of US$130.6 million versus US$23.1 million in Q3 2025, need to show staying power over more periods.    To see how these profit trends fit into a longer term story, including growth expectations and risks, you can read the full narrative investors are using to frame TAL today. 📊 Read the full TAL Education Group Consensus Narrative. Revenue run rate reaches about US$2.8b  The trailing twelve month revenue line has moved from US$1.8b at Q2 2025 to about US$2.8b by Q3 2026, and within that, quarterly revenue ranges from US$575.0 million in Q1 2026 to US$861.4 million in Q2 2026 then US$770.2 million in Q3 2026. What supports a bullish angle on TAL's top line is that the analysis data pairs this US$2.8b revenue base with forecast revenue growth of around 16.7% per year and forecast earnings growth of about 16.3% per year.\n     Fans of the growth story can also point to the five year annualised earnings growth figure of 59.6% in the analysis, alongside the move from a loss of US$7.3 million in Q4 2025 to profits in all three quarters of 2026 so far. More cautious readers may still want to see how consistent that revenue pattern looks over a few more years, given that the quarter to quarter revenue swing between US$575.0 million and US$861.4 million could reflect seasonality as much as anything else.    Premium 27.7x P/E but DCF fair value sits higher  The stock trades on a trailing P/E of 27.7x compared with a peer average of 23.1x and a US Consumer Services average of 16.8x, while a DCF fair value in the analysis is US$23.57 per share against a current share price of US$12.70, which is about a 46% gap to that DCF level. What makes the valuation debate interesting is that critics can point to the higher P/E as a bearish sign, yet the supplied DCF fair value and growth inputs pull in the opposite direction.\n     Bears highlight that paying 27.7x trailing earnings is richer than both peers and the broader industry, even after the sharp 133.4% reported earnings growth over the past year. Supporters counter that if the mid teens growth forecasts and current 9.9% net margin hold up, then the US$23.57 DCF fair value versus a US$12.70 market price suggests the multiple alone does not tell the whole story.     Next Steps Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on TAL Education Group's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move. See What Else Is Out There TAL's higher 27.7x P/E relative to peers and industry, alongside debate around the valuation gap to its DCF figure, leaves some investors questioning price versus fundamentals. If you are uneasy about paying up in that kind of debate, use our these 866 undervalued stocks based on cash flows to zero in on ideas where the valuation case looks tighter today.  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.Valuation is complex, but we're here to simplify it.Discover if TAL Education Group might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. 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