New Oriental Revenue Rises 23.0% to $1,529.5 Million in Fourth Quarter
Key Facts
New Oriental Education reported net revenue of $1,529.5 million in the fourth quarter of fiscal 2026, up 23.0% year over year. The company said in its earnings release that quarterly growth was driven mainly by its new education initiatives. The results cover the three months ended May 31, 2026. The company posted operating income of $85.8 million, compared with an operating loss of $8.7 million in the same period a year earlier. Operating margin rose to 5.6% from negative 0.7%, marking a return to operating profitability during the quarter.
Net income attributable to New Oriental was $62.2 million, up 775.8% from the year-earlier period. By contrast, non-GAAP net income attributable to the company fell 10.5% to $87.8 million. The divergence between the two profit measures shows that the sharp increase in reported net income was not matched by an increase in the adjusted measure, which declined year over year. The release did not provide a separate explanation for the gap between the two measures in these quarterly figures. On business activity, Chairman Michael Yu said revenue from test preparation and overseas consulting increased about 3.6% during the quarter.
Yu added that domestic test preparation for adults and college students grew about 29.1% year over year. Revenue from new education initiatives also rose about 24.8%; the company said those initiatives were the main driver of overall revenue growth. Non-academic tutoring courses expanded to about 60 cities and drew nearly 1,072,000 student enrollments during the quarter. Smart learning systems and devices also reached about 60 cities, with nearly 326,000 paid active users. These metrics show the expanding reach of the new business lines alongside growth in domestic and overseas test preparation revenue.
For the full fiscal year ended May 31, 2026, New Oriental reported net revenue of $5,661.3 million, up 15.5% from the previous year. Operating income was $643.3 million, up 50.2%, while net income attributable to the company reached $475.2 million, an increase of 27.8%. Annual operating margin rose to 11.4% from 8.7% in fiscal 2025. Non-GAAP operating margin was 13.0%, compared with 11.3% a year earlier. For the fourth quarter alone, Chief Financial Officer Stephen Chi Hoi Yang said adjusted operating margin was 7.2%, up 60 basis points year over year.
Yang said the company would continue cost-control and efficiency initiatives across its main business lines in the new fiscal year. The company forecast fiscal 2027 net revenue of between $6,453.9 million and $6,680.3 million, representing annual growth of between 14% and 18%. Fiscal 2027 runs from June 1, 2026, to May 31, 2027. The company also said expected total cash dividends for the fiscal year were about $300 million, payable in two installments in December 2026 and June 2027. The board also authorized repurchases of up to $200 million of ordinary shares or American depositary shares over the 12 months following its approval.
In trading sessions ahead of the results announcement, the company's shares closed at $59.50 on October 21, then $58.68 on October 22 and $58.38 on October 23. They fell to $58.35 on October 26, before ending the October 27 session at $57.99. These closing prices show successive declines during the recorded days before the results were released on October 28. The available data did not include a post-announcement close, so it does not show the stock's reaction after the results were published. The new fiscal year's financial guidance remains within the range the company announced for revenue in the year ending May 31, 2027.