EL7.AI
StocksMedium•28 October 2026•
2 min read

New Oriental Raises Revenue 23.1% to $1,874.5 Million in First Quarter

Key Facts

1Net revenue was $1,874.5 million, up 23.1% year over year in the first fiscal quarter ended August 31, 2026.
2Operating expenses rose 23.7% to $1,499.8 million.
3Operating income was $374.7 million, up 20.5%, while the operating margin declined to 20.0% from 20.4%.
4The company reaffirmed annual revenue guidance of $6,453.9 million to $6,680.3 million, and growth of 14% to 18% for fiscal 2027.
5The board approved dividends of $2.0 per American depositary share, with the first installment expected to be paid on December 4, 2026.

New Oriental recorded net revenue of $1,874.5 million in the first fiscal quarter of 2027, up 23.1% year over year, according to an earnings statement published on its investor relations website. The period covered the three months ended August 31, 2026. The company attributed revenue growth mainly to increased revenue from its new education initiatives, along with East Buy private-label products and livestreaming e-commerce. This reflected contributions from multiple education and commerce activities to the increase recorded during the quarter. The company said these activities were the main drivers of revenue growth.

Operating expenses rose to $1,499.8 million, up 23.7% year over year, according to the company statement. The increase in expenses accompanied revenue growth, but exceeded its 23.1% growth rate. The company attributed the rise in costs and expenses mainly to growth in East Buy private-label products and livestreaming e-commerce. Operating income was $374.7 million, up 20.5% year over year, according to results published via "PR Newswire." Meanwhile, the operating margin was 20.0%, compared with 20.4% in the same period of the previous fiscal year.

The chief financial officer said margins in the company's core education and East Buy segments expanded year over year, while changes in the revenue mix kept the consolidated margin stable. The explanation came as the consolidated operating margin fell to 20.0% from 20.4%, despite growth in operating income. GAAP profitability data showed a year-over-year improvement in net income per American depositary share. Basic net income was $1.76 per share, compared with $1.52 a year earlier, while diluted net income was $1.74, compared with $1.50. Each American depositary share represents 10 ordinary shares, according to the earnings statement.

New Oriental reaffirmed its previous fiscal 2027 revenue guidance of $6,453.9 million to $6,680.3 million, equivalent to annual growth of 14% to 18%. The fiscal year runs from June 1, 2026, to May 31, 2027, according to the company statement. The guidance sets an annual revenue range following first-quarter growth, without changing the outlook previously provided. On shareholder returns, the board approved fiscal-year cash dividends of $0.2 per ordinary share, or $2.0 per American depositary share, payable in two installments. Shareholders of record will be determined on November 18, 2026, while the first installment for depositary receipt holders is expected to be paid on December 4, 2026.