New Oriental Stock Earnings Reports

Key points for investors: New Oriental reported Q1 FY2026 total net revenue up 6.1% year‑over‑year, with non‑GAAP operating margin of 22% (up 100 bps YoY). Operating income was $310.8M; GAAP net income attributable to New Oriental was $240.7M (down 1.9% YoY); non‑GAAP net income was $258.3M (down 1.6% YoY). Segment performance: overseas test‑prep +1% YoY, overseas study consulting +2% YoY, adults & university students +14% YoY, and new education initiatives +15% YoY. East Buy is improving product mix, membership engagement and profitability. The company continues OMO (online‑merged‑offline) platform upgrades and AI investments (Q1 OMO/device investment ~$28.5M) and is embedding AI across products and operations. Share‑based compensation rose to $23.3M this quarter and management expects similar quarterly levels in the near term. Cash & equivalents remain strong (cash $1.28B, term deposits $1.57B, short‑term investments $2.18B); deferred revenue increased 10% YoY to $1.907B. Guidance: Q2 (Sept 1–Nov 30, 2025) revenue expected $1,132.1M–$1,263.3M (+9% to +12% YoY); full fiscal year 2026 revenue guidance reiterated at $5,145.3M–$5,390.3M (+5% to +10% YoY). Management emphasizes continued margin expansion through cost control, better utilization and selective capacity expansion. Capital return: Board approved an ordinary cash dividend totaling $0.12 per common share ($1.2 per ADS) paid in two installments (~$190M aggregate) and a new share repurchase authorization up to $300M over 12 months. Tax rate was elevated in Q1 (~27%) due to intercompany dividend withholding related to the capital return, and management expects a higher ETR this year versus historical norms.