| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 73 | 18.6x | 17.8x | Top tier | |
Growth | 86 | 15.6% | 7.1% | Top tier | |
Quality | 81 | 9.6% | 4.5% | Top tier | |
Safety | 77 | — | 2.6x | Top tier | |
Capital Return | 40 | — | 2.12% | Bottom tier | |
Momentum | 61 | 20.4% | 2.9% | Around median | |
Sentiment | 62 | 10 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
New Oriental Education & Technology Group operates an educational services ecosystem that includes overseas study test preparation and study-abroad consulting, education for adults and university students, non-academic tutoring, and smart learning systems and devices. It has also diversified its revenue sources through East Buy commerce and livestreaming, educational and cultural tours, and the New Oriental Home platform, which combines education and tourism services and East Buy products in a single app; by the end of Q4 FY2026, the pilot platform was operating in 69 cities and had more than 950 thousand registered families.
In Q4 FY2026, net revenues increased 23% year over year to $1.5295 billion. Operating income reached $85.8 million, equivalent to an operating margin of approximately 5.6%, compared with an operating loss of $8.7 million in the corresponding period; adjusted operating income also increased 34.7% to $110 million, with a margin of approximately 7.2%. Net income attributable to New Oriental was approximately $62.2 million, up 775.8%, while adjusted net income decreased 10.5% to $87.8 million.
The business mix reflected clear divergence in Q4 FY2026: new educational initiatives grew 25%, the adult and university student business grew 29%, overseas study test preparation grew 6%, and overseas study consulting grew approximately 1%. For FY2025, the company reported revenues of $4.9 billion and gross profit of $2.7 billion, with a gross margin of approximately 55.1%, and net income of $371.7 million, compared with revenues of $4.3 billion and net income of $309.6 million in FY2024.
The analyst consensus is Buy, with an average price target of $56.5, which is also both the highest and lowest available target, meaning there is no actual range among the estimates provided. This target is approximately 13% below the 52-week range high of $64.97 and approximately 28% above its low of $44.25; this valuation balances expected FY2027 revenue growth of between 14% and 18% against the slow overseas study-related business, regulatory risks, and the decline in adjusted net income in Q4 FY2026.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
Net revenues reached $1.5295 billion, an annual increase of 23%. Operating performance shifted from a loss of $8.7 million to operating income of $85.8 million, while adjusted operating income increased 34.7% to $110 million. Net income attributable to New Oriental was approximately $62.2 million, but adjusted net income decreased 10.5% to $87.8 million.
The company expects FY2027 revenues of between $6.4539 billion and $6.6803 billion, equivalent to annual growth of between 14% and 18%. Management expects approximately 20% growth in the K–12 education business, with the overseas study-related business remaining stable or growing at a low-single-digit rate. It also targets margin expansion through cost controls and improved capacity utilization.
The company completed the first phase of deploying a proprietary AI-powered personalized learning platform and stated during the July 29, 2026 call that it generated meaningful sales during the first 25 days. It also integrates AI tools into learning devices, classrooms, and after-school activities to improve the student experience and teaching efficiency. The technology is also used to increase the productivity of teachers, assistants, and support teams and reduce the need to hire additional employees.
Automated analysis for informational purposes only — not investment advice.
New Oriental Home combines education services, East Buy products, and cultural tours in a unified app serving children, parents, and senior citizens. By the end of Q4 FY2026, the pilot program was operating in 69 cities and had more than 950 thousand registered families, with a cumulative engagement rate of approximately 70% and an activation rate of 23% in the latest campaign mentioned. Through this ecosystem, the company aims to increase customer retention and cross-selling, improve conversion, and reduce customer acquisition costs.
As of May 31, 2026, New Oriental held $1.8212 billion in cash and cash equivalents, along with $1.3668 billion in term deposits and $2.3723 billion in short-term investments. Operating cash flow in Q4 FY2026 was approximately $518.7 million, compared with capital expenditures of $99 million. For FY2027, the company expects capital returns of approximately $500 million, including expected cash dividends of approximately $300 million and a new share repurchase program of up to $200 million.
Overseas study consulting grew only approximately 1% and overseas study test preparation grew 6% in Q4 FY2026, and management expects low growth for this business in FY2027. The company also remains exposed to changes in Chinese regulatory requirements and to the concentration of more than half of the revenues from some new initiatives in the ten largest cities. In addition, adjusted net income decreased 10.5% in the quarter, and management acknowledged that the population trend represents a long-term challenge for the K–12 education business.
