NYSE$EDU

New Oriental Education & Technology Group Inc-ADR · Q1 2026 earnings

Q1 2026 earnings · · Before market open · Investor relations

Briefing

New Oriental's Q1 2026 earnings report was released, detailing financial and operating performance for the quarter ended August 31, 2025.

New Oriental reported a healthy start to fiscal year 2026 with total net revenues increasing by 6.1% year over year to $1,523.0 million, surpassing expectations. Operating income also saw a 6.0% increase, while net income attributable to New Oriental slightly decreased by 1.9%. The growth was primarily driven by new educational business initiatives and strong performance in domestic test preparation for adults and university students.

  • Total net revenues increased by 6.1% year over year to $1,523.0 million, exceeding the upper end of the company's expected range.
  • Operating income grew by 6.0% to $310.8 million, while non-GAAP operating margin improved by 100 basis points to 22.0%.
  • Net income attributable to New Oriental decreased by 1.9% to $240.7 million, and non-GAAP net income also saw a slight decrease of 1.6%.
  • New educational business initiatives recorded a significant revenue growth of 15.3%, and the domestic test preparation business for adults and university students grew by 14.4%.

Headline financials

Total Revenue

$1.52B

Previous: $1.44B+6.1%
EPS (adj)

$1.61

Previous: $1.60+0.6%
Operating Margin

20.4%

No prior period
Non-GAAP Op Margin

22.0%

No prior period
Share-Based Comp

$23.3M

No prior period
Deferred Revenue

$1.91B

No prior period
Operating Cash Flow

$192M

No prior period
Capital Expenditures

$55.4M

No prior period
Net Income

$241M

No prior period
Operating Income

$311M

No prior period

Revenue & EPS history

New Oriental · Revenue · Quarterly

$1.52B

Q1 2026+6.1%vs Q1 2025
Beat estimate in 13 of 13 quarters(100%)
ActualEstimate

Revenue by segment

New Oriental · $1.18B total across 2 segments · Q3 2025

  • Core education (ex-East Buy)
    $1.04B
  • East Buy private label & livestreaming
    $145M

Forward guidance

New Oriental expects total net revenues for the second quarter of fiscal year 2026 to be between $1,132.1 million and $1,163.3 million, representing a year-over-year increase of 9% to 12%. The company also reaffirmed its full fiscal year 2026 revenue guidance of $5,145.3 million to $5,390.3 million, indicating a 5% to 10% year-over-year increase.

Tailwinds

  • Projected Q2 FY2026 revenue growth of 9% to 12% year over year.
  • Reaffirmed full fiscal year 2026 revenue growth guidance of 5% to 10%.
  • Continued focus on enhancing core education business and product capabilities.
  • Strategic investment in OMO teaching system and AI technologies for improved learning experience.
  • Expansion of AI application to streamline internal operations and enhance efficiency.

Headwinds

  • Forecasts are subject to change based on current and preliminary views.
  • Guidance is based on the current USD/RMB exchange rate, which is subject to change.
  • Challenges posed by the continued slowdown in overseas businesses.
  • Potential uncertainties related to the interpretation and implementation of PRC laws and regulations.
  • Competition in the private education sector and livestreaming e-commerce business in China.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2026

Historical avgQ1 2026

-0.1%

Avg return

Earnings day

+2.0%

Avg return

5 days after

+2.2%

Avg return

30 days after

50%

25 / 50 earnings

Positive

+23.5%

Q1 2023

Best reaction

-57.3%

Q4 2012

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026-3.4%-7.2%-17.7%
Q2 2026+5.4%+10.9%-2.4%
Q1 2026-3.4%-1.7%-16.1%
Q4 2025-5.4%-1.1%+2.6%
Q3 2025-0.7%+5.8%+4.6%
Q1 2025-8.9%-4.4%-14.6%
Q4 2024-10.8%-5.7%-11.2%
Q3 2024-11.1%-8.1%-12.8%
Q2 2024+12.6%+5.8%+27.3%
Q1 2024+4.2%+3.9%+20.1%
Q4 2023+5.6%+12.6%+9.9%
Q3 2023+14.0%+10.3%-3.9%
Q2 2023-4.4%+3.6%-2.7%
Q1 2023+23.5%+12.7%+18.9%
Q4 2022+20.6%+9.3%+17.0%
Q3 2022+3.7%+20.7%+13.6%
Q4 2021-1.0%-5.6%+21.9%
Q3 2021+8.4%+6.1%-22.6%
Q2 2021-6.0%-7.0%+5.4%
Q1 2021-3.2%-3.5%-0.4%
Q4 2020-3.2%+0.3%+4.6%
Q3 2020+4.0%+0.7%+7.3%
Q2 2020-2.6%-8.2%+4.4%
Q1 2020-3.5%+3.7%+1.5%
Q4 2019+9.0%+6.8%+8.5%
Q3 2019-0.1%+4.6%-10.2%
Q2 2019+10.5%+17.6%+18.9%
Q1 2019-18.4%-9.5%-13.2%
Q4 2018-1.0%-2.5%-17.5%
Q3 2018+1.9%+3.8%+20.1%
Q2 2018-9.0%-4.6%-6.6%
Q1 2018-5.4%-9.2%-5.0%
Q4 2017+3.0%-0.8%+3.4%
Q3 2017+6.5%+2.8%+16.6%
Q2 2017-1.8%-0.6%+1.5%
Q1 2017+8.2%+6.6%+5.8%
Q4 2016+6.3%+5.3%+2.5%
Q3 2016+8.4%
Q2 2016+2.7%
Q1 2015+9.7%
Q4 2015-3.3%
Q3 2015+5.7%
Q2 2014-4.6%
Q4 2012-57.3%
Q2 2012-11.5%
Q4 2011+0.3%
Q4 2009+0.3%
Q4 2010+0.3%
Q2 2011+2.1%
Q3 2010-2.1%

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