| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 95 | 2.5x | 17.8x | Top tier | |
Growth | 96 | 32.6% | 7.1% | Top tier | |
Quality | 76 | 2.5% | 4.5% | Top tier | |
Safety | 74 | — | 2.6x | Top tier | |
Capital Return | 92 | — | 2.12% | Top tier | |
Momentum | 66 | 15.8% | 2.9% | Top tier | |
Sentiment | 53 | 9 | 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.
TAL Education Group operates in education through two interconnected pillars: learning services, which include in-person Peiyou programs and online enrichment services, and content solutions that distribute proprietary and third-party educational content through learning devices. Peiyou remained the largest revenue contributor during quarter 1 of fiscal year 2027, while the company’s network expanded to more than 600 learning centers across 44 cities in mainland China and selected international markets, and in-person programs recorded double-digit year-over-year growth and a retention rate exceeding 80%.
Revenue for quarter 1 of fiscal year 2027 ended May 31, 2026 reached approximately $758 million, up 32% year over year in U.S. dollar terms and 25% in renminbi terms. Gross profit rose 39% to $438 million, and gross margin expanded to 57.8% from 54.9%, while operating income jumped to $137 million from $14 million, and non-GAAP operating income reached $149 million at a margin of 19.6% versus 4.4%.
Net income attributable to TAL reached approximately $408 million in quarter 1 of fiscal year 2027, compared with $31 million a year earlier, but part of the increase was related to higher valuations of certain investments recorded within other income, a gain that management said may not recur. On an annual basis, fiscal year 2026 revenue increased to $3.0 billion from $2.3 billion in fiscal year 2025, and net income rose to $530.8 million from $84.6 million, with earnings per share of 2.75 versus 0.41.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus is “Neutral,” with an average target of $13.6 and identical highest and lowest targets at the same level; this target is slightly above the 52-week range high of $13.37, but it is based on 1 estimate with no visible dispersion of views. The 52-week range is between $8.88 and $13.37, while no reliable price-to-earnings ratio is available in the data, so the strong operating improvement should be weighed against the expected growth slowdown and the nonrecurring nature of investment valuation gains.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
In-person Peiyou programs remained the largest contributor to TAL’s revenue during quarter 1 of fiscal year 2027. These programs achieved double-digit year-over-year growth, supported by stable demand and expansion of the learning-center network. Student retention exceeded 80%, while the company operated more than 600 centers in 44 cities in mainland China and selected international markets.
Revenue reached approximately $758 million in quarter 1 of fiscal year 2027 ended May 31, 2026, up 32% year over year in U.S. dollar terms. Gross profit rose 39% to $438 million, and gross margin expanded to 57.8% from 54.9%. Operating income also reached $137 million, and net income attributable to TAL was approximately $408 million, compared with $14 million and $31 million, respectively, a year earlier.
TAL launched the T6 series in July 2026 as its latest flagship educational devices. The series includes an AI learning assistant that provides pre-lesson guidance, real-time feedback, summaries, learning diagnostics, and personalized study plans, while the international version expanded global resources and curricula. In quarter 1 of fiscal year 2027, weekly active devices exceeded 2 million, with an activity rate of approximately 80% and average daily usage of approximately 1 hour per device.
The operating business showed genuine improvement, as non-GAAP operating income rose 492% to $149 million and its margin expanded to 19.6% from 4.4%. However, higher valuations of certain investments contributed to the increase in other income and supported net income of $408 million. Management said on the July 30, 2026 call that the valuation gains were tied to market movements and may not recur, so it would be inappropriate to assume that quarterly net income will remain at the same level.
Management identified 3 main pressures in fiscal year 2027: competition, changing consumer sentiment, and rising component costs, particularly memory chips. It expects the market to remain volatile and these factors to persist during fiscal year 2027. In response, TAL is working to optimize inventory, reduce stock-keeping units, refine the product portfolio, and improve efficiency, but these measures do not eliminate the risks of pressure on margins and demand.
As of May 31, 2026, TAL held approximately $1.6 billion in cash and cash equivalents, $1.2 billion in short-term investments, and $306 million in restricted cash. Cash flow from operations reached $478 million in quarter 1 of fiscal year 2027. In July 2026, the board extended the repurchase program through July 28, 2027 for an amount of up to $393.7 million, after repurchasing approximately 1.2 million shares for $41 million between April 23 and July 28, 2026.
