BEIJING, April 22, 2026 /PRNewswire/ -- New Oriental Education & Technology Group Inc. (the "Company" or "New Oriental") (NYSE: EDU/ 9901.SEHK), a provider of private educational services in China, today announced its unaudited financial results for the third fiscal quarter ended February 28, 2026, which is the third quarter of New Oriental's fiscal year 2026.
Financial Highlights for the Third Fiscal Quarter Ended February 28, 2026
-- Total net revenues increased by 19.8% year over year to US$1,417.3
million for the third fiscal quarter of 2026.
-- Operating income increased by 44.8% year over year to US$180.3 million
for the third fiscal quarter of 2026.
-- Net income attributable to New Oriental increased by 45.3% year over year
to US$126.8 million for the third fiscal quarter of 2026.
Key Financial Results
% of
(in thousands US$, except per ADS(1) data) 3Q FY2026 3Q FY2025 change
----------------------------------------------- --------- --------- -------
Net revenues 1,417,341 1,183,055 19.8 %
Operating income 180,320 124,519 44.8 %
Non-GAAP operating income (2)(3) 202,885 142,056 42.8 %
Net income attributable to New Oriental 126,815 87,255 45.3 %
Non-GAAP net income attributable to New
Oriental (2)(3) 152,183 113,344 34.3 %
Net income per ADS attributable to New Oriental
- basic 0.80 0.54 48.7 %
Net income per ADS attributable to New Oriental
- diluted 0.79 0.54 47.7 %
Non-GAAP net income per ADS attributable to New
Oriental - basic (2)(3)(4) 0.97 0.70 37.4 %
Non-GAAP net income per ADS attributable to New
Oriental - diluted (2)(3)(4) 0.95 0.70 36.5 %
% of
(in thousands US$, except per ADS(1) data) 9M FY2026 9M FY2025 change
------------------------------------------- --------- --------- -------
Net revenues 4,131,762 3,657,107 13.0 %
Operating income 557,454 436,924 27.6 %
Non-GAAP operating income (2)(3) 627,558 472,550 32.8 %
Net income attributable to New Oriental 412,990 364,616 13.3 %
Non-GAAP net income attributable to New
Oriental (2)(3) 483,346 418,988 15.4 %
Net income per ADS attributable to New
Oriental - basic 2.61 2.24 16.5 %
Net income per ADS attributable to New
Oriental - diluted 2.58 2.22 16.0 %
Non-GAAP net income per ADS attributable to
New Oriental - basic (2)(3)(4) 3.05 2.57 18.7 %
Non-GAAP net income per ADS attributable to
New Oriental - diluted (2)(3)(4) 3.02 2.55 18.2 %
(1) Each ADS represents ten common shares. The Hong Kong-listed shares are
fully fungible with the ADSs listed on NYSE.
(2) GAAP represents Generally Accepted Accounting Principles in the United
States of America.
(3) New Oriental provides non-GAAP financial measures on net income
attributable to New Oriental, operating income and net income per ADS
attributable to New Oriental that exclude share-based compensation expenses,
amortization of intangible assets resulting from business acquisitions, (gain)
/loss from fair value change of investments, loss from equity method
investments, impairment of long-term investments, impairment of goodwill, gain
on disposals of investments and others, as well as tax effects on non-GAAP
adjustments. For further details on these adjustments, please refer to the
section titled "About Non-GAAP Financial Measures" and the tables captioned
"Reconciliations of Non-GAAP Measures to the Most Comparable GAAP Measures"
set forth at the end of this release.
(4) The Non-GAAP net income per ADS attributable to New Oriental is computed
using Non-GAAP net income attributable to New Oriental and the same number of
shares and ADSs used in GAAP basic and diluted EPS calculation.
Operating Highlights for the Third Fiscal Quarter Ended February 28, 2026
Michael Yu, New Oriental's Executive Chairman, commented, "We are pleased to share of continued acceleration in our revenue growth year over year in the third fiscal quarter of 2026. Revenues from overseas test preparation increased by approximately 7.4%. In addition, our domestic test preparation business targeting adults and university students grew by approximately 14.5% year over year, followed by a growth of 23.3% year over year for our new educational business initiatives. Our non-academic tutoring courses was rolled out in around 60 cities, attracting approximately 458,000 student enrollments this quarter. Concurrently, our intelligent learning system and devices were adopted in around 60 cities, with approximately 367,000 active paid users. We are sharpening our focus on our core education business, prioritizing enhancements of teaching standards and product quality. Simultaneously, we will optimize our cost structure and operational efficiency to drive high-quality, efficient, and sustainable growth. We have also established a comprehensive customer service system spanning all departments, which now serves over 330,000 families in 12 cities. This infrastructure strengthens customer loyalty and retention, unlocks cross-selling potential, maximizes customer lifetime value all while lowering both customer acquisition and marketing costs. We remain committed to enhancing our brand influence and creating long-term value for our customers and shareholders."
Chenggang Zhou, New Oriental's Chief Executive Officer, added, "In this fiscal quarter, we continued to execute our strategy of disciplined capacity expansion, balancing revenue growth with operational efficiency. As part of our ongoing commitment, we further enhanced our OMO teaching system and deepened AI integration across our education ecosystem. This quarter, we made notable progress in embedding AI into existing educational offerings, refining AI--powered products, and deploying AI to improve operational efficiency and support for our teaching staff. In addition, East Buy remains committed to offering premium products and exceptional services to Chinese families. We launched multiple live-streaming accounts on Douyin, creating a comprehensive multi-account matrix including East Buy Home, East Buy Fruit & Vegetables, East Buy Nutrition & Health, followed by other vertical channels. We also optimized live-streaming content and introduced innovative initiatives such as live streamer recruitment campaign and supplier conferences. East Buy will continue advancing private label development, membership ecosystem, offline expansion, and operational efficiency to drive sustainable long-term growth."
Stephen Zhihui Yang, New Oriental's Executive President and Chief Financial Officer, commented, "We are encouraged by the continued year over year improvement in our Non-GAAP operating margin in this quarter. This was primarily driven by enhanced operational efficiency and improved utilization within our educational business. We recorded a quarterly Non-GAAP operating margin of 14.3%, up by 230 basis points compared to the same period last fiscal year. Looking ahead, we remain committed to executing the cost and efficiency initiatives already underway across key business lines. Targeted structural optimizations have enabled fixed cost reduction and driven greater operational efficiency, steadily elevating our operating profit margins and strengthening our foundation for sustainable, profitable growth."
Update on Shareholder Return for the Fiscal Year 2026
In October 2025, the Company announced that, pursuant to its previously adopted three-year shareholder return plan, the board of directors had approved an ordinary dividend of US$0.12 per common share, or US$1.20 per ADS, to be distributed in two installments as part of the shareholder return for the fiscal year 2026. The first installment has been fully paid to shareholders and ADS holders. The board has now approved the payment of the second installment of US$0.06 per common share, or US$0.6 per ADS, to holders of common shares and holders of ADSs of record as of the close of business on May 15, 2026, Beijing/Hong Kong Time and New York Time, respectively, with the expected payment date to be on or around June 2, 2026 and June 5, 2026 for holders of common shares and holders of ADSs, respectively.
For holders of common shares, in order to qualify for the second installment of the dividend, all valid documents for the transfer of shares accompanied by the relevant share certificates must be lodged for registration with the Company's Hong Kong branch share registrar, Computershare Hong Kong Investor Services Limited, at Shops 1712-1716, 17th Floor, Hopewell Centre, 183 Queen's Road East, Wanchai, Hong Kong no later than 4:30 p.m. on May 15, 2026 (Beijing/Hong Kong Time). Dividend to be paid to the Company's ADS holders through the depositary bank will be subject to the terms of the deposit agreement.
Additionally, as part of the shareholder return for the fiscal year 2026, the Company also announced in October 2025 a share repurchase program, under which the Company is authorized to repurchase up to US$300 million of its ADSs or common shares over the subsequent 12 months. As of April 21, 2026, the Company had repurchased a total of approximately 3.3 million ADSs for an aggregate consideration of approximately US$184.3 million from the open market under this share repurchase program.
Financial Results for the Third Fiscal Quarter Ended February 28, 2026
Net Revenues
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