New Oriental Education & Technology Group Inc-ADR · Q2 2026 earnings

Briefing

New Oriental Q2 FY26 revenue up 15% to $1.19B; non-GAAP operating margin hits 7.5%

New Oriental Education & Technology Group announced unaudited results for the second fiscal quarter ended November 30, 2025 on January 28, 2026. Net revenues increased 14.7% year over year to $1,191.4 million, operating income surged 244.4% to $66.3 million, and net income attributable to New Oriental rose 42.3% to $45.5 million. Non-GAAP operating income was $89.1 million with a 7.5% non-GAAP operating margin, up 470 basis points year over year, while non-GAAP net income was $72.9 million and non-GAAP diluted EPS was $0.45. Management cited 4.1% growth in overseas test preparation, 12.8% growth in domestic adult and university test prep, and 21.6% growth in new educational initiatives, including about 1.06 million non-academic tutoring enrollments and 352,000 active paid users on intelligent learning devices. Cash and cash equivalents were $1.84 billion with $1.61 billion in term deposits and $1.88 billion in short-term investments; deferred revenue reached $2.16 billion. The company raised full-year FY2026 revenue guidance to $5.29–$5.49 billion.

• Q2 net revenues grew 14.7% to $1.19B with operating income up 244% to $66.3M and net income of $45.5M.
• Non-GAAP operating margin expanded 470 bps to 7.5% on $89.1M of non-GAAP operating income.
• New educational initiatives grew 21.6% with about 1.06M non-academic tutoring enrollments across roughly 60 cities.
• Deferred revenue rose to $2.16B; the company repurchased about 1.6M ADSs for $86.3M under its $300M buyback program.
• FY2026 revenue guidance was raised to $5.29–$5.49B, implying 8–12% full-year growth.

Headline financials

Revenue & EPS history

For Q3 FY2026 New Oriental expects net revenues of $1.31–$1.35 billion (11–14% YoY growth) and raised full-year FY2026 revenue guidance to $5.29–$5.49 billion.