NYSE$TAL

TAL Education Group ADR · Q2 2026 earnings

Q2 2026 earnings · · Before market open · Investor relations

Briefing

TAL Education Group announced its unaudited financial results for the second quarter of fiscal year 2026, reporting significant growth in net revenues, operating income, and net income.

TAL Education Group delivered strong financial results for the second quarter of fiscal year 2026, with net revenues increasing by 39.1% year-over-year to $861.4 million. The company saw a substantial rise in net income attributable to TAL, which more than doubled to $124.1 million, and a significant improvement in operating income. This growth was attributed to progress across core businesses, including enrichment learning programs and learning devices, driven by investments in user experience, technology, and educational model innovations.

  • Net revenues for Q2 FY2026 increased by 39.1% to $861.4 million, up from $619.4 million in the prior year.
  • Net income attributable to TAL surged by 116.1% to $124.1 million, compared to $57.4 million in Q2 FY2025.
  • Operating income more than doubled, reaching $96.1 million, a 101.8% increase from $47.6 million in the same period last year.
  • Diluted EPS was $0.21, while non-GAAP diluted EPS was $0.24, reflecting strong profitability.

Headline financials

Total Revenue

$861M

Previous: $619M+39.1%
EPS (adj)

$0.24

Previous: $0.12+100.0%
Gross Margin

57.0%

No prior period
Cash Flow from Ops

-$58.1M

No prior period
Non-GAAP Op Income

$108M

No prior period
Non-GAAP Net Income

$136M

No prior period
Other Income

$67.1M

No prior period
Deferred Revenue

$823M

No prior period
Net Income

$124M

Previous: $57.4M+116.1%
Operating Income

$96.1M

Previous: $47.3M+103.0%
Gross Profit

$491M

Previous: $349M+40.8%

Revenue & EPS history

TAL Education · Revenue · Quarterly

$861M

Q2 2026+39.1%vs Q2 2025
Beat estimate in 12 of 14 quarters(86%)
ActualEstimate

Forward guidance

TAL Education Group plans to continue allocating resources to key areas for sustainable growth, focusing on delivering transformative learning solutions and expanding access to high-quality educational content. The company also authorized a new share repurchase program of up to $600 million over the next 12 months.

Tailwinds

  • Continued investment in user experience, technology, and educational model innovations to drive momentum.
  • Strategic allocation of resources to key areas critical for sustainable growth.
  • Commitment to delivering transformative learning solutions for students' holistic development.
  • Expansion of access to high-quality educational content.
  • New share repurchase program authorized for up to $600 million over the next 12 months, indicating confidence in future value.

Headwinds

  • No specific negative forward guidance was provided in the report.
  • The company did not provide quantitative financial guidance for future periods.
  • Increased competition in the education sector could impact future growth.
  • Regulatory changes in the education industry in China could pose challenges.
  • Potential for fluctuations in cash, cash equivalents, and short-term investments.

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 Q2 2026

Historical avgQ2 2026

+2.4%

Avg return

Earnings day

+1.7%

Avg return

5 days after

+4.6%

Avg return

30 days after

57%

35 / 61 earnings

Positive

+22.7%

Q2 2019

Best reaction

-15.7%

Q1 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026-6.8%-10.5%-18.9%
Q3 2026+18.0%+13.8%-2.1%
Q2 2026+7.8%-3.2%-8.6%
Q1 2026+8.3%+10.3%+5.3%
Q4 2025+2.0%-14.9%+2.2%
Q3 2025+21.2%+41.8%+58.3%
Q2 2025+7.5%+4.5%-4.7%
Q1 2025-15.5%-6.7%-19.8%
Q4 2024+9.4%-1.8%-6.8%
Q3 2024+4.0%-4.8%+25.8%
Q2 2024-9.7%-14.3%+11.3%
Q1 2024+21.2%+18.9%+1.7%
Q4 2023-2.0%-12.0%-2.2%
Q3 2023-1.6%+1.6%-9.9%
Q2 2023+18.6%+24.9%+33.2%
Q1 2023-13.5%-9.4%+12.4%
Q4 2022+22.1%+28.4%+36.0%
Q3 2022+0.3%-13.1%-3.0%
Q1 2022-3.1%-2.4%-31.9%
Q4 2021-3.1%-2.4%-31.9%
Q3 2021+12.2%+16.3%+33.1%
Q2 2021-6.2%-11.2%-0.6%
Q1 2021-0.4%+0.5%-2.0%
Q4 2020+7.5%-2.9%+8.1%
Q3 2020-8.6%-13.6%+8.2%
Q2 2020+14.1%+11.2%+15.0%
Q1 2020-12.6%-14.3%-9.5%
Q4 2019+12.1%+11.8%-1.3%
Q3 2019-2.0%-2.2%+8.8%
Q2 2019+22.7%+21.3%+18.8%
Q1 2019-15.7%-21.6%-27.1%
Q4 2018+1.3%+3.2%+21.3%
Q3 2018+19.3%+13.8%+36.3%
Q2 2018-2.0%-2.5%-0.3%
Q1 2018+2.3%+4.0%+12.8%
Q4 2017+2.5%+0.8%+2.7%
Q3 2017+8.2%+5.9%+11.6%
Q2 2017+5.7%+2.9%-0.1%
Q1 2017-6.8%-6.6%-3.9%
Q4 2016+6.9%
Q3 2016-2.0%
Q2 2016-1.3%
Q1 2016-5.6%
Q4 2015-1.0%
Q3 2015+1.6%
Q2 2015-0.7%
Q1 2015+1.7%
Q4 2014+0.3%
Q3 2014+1.2%
Q2 2014+0.3%
Q1 2014-0.2%
Q4 2013+2.5%
Q3 2013-0.7%
Q2 2013-1.6%
Q4 2010+1.5%
Q4 2012+1.5%
Q1 2013+1.5%
Q4 2011+1.5%
Q3 2012-1.7%
Q3 2011-1.2%
Q1 2012+2.9%
Q2 2011
Q1 2011

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