New Oriental Education & Technology Group Inc. reported third‑quarter 2026 results that surpassed consensus expectations, with net revenue reaching $1.417 billion—an increase of 19.8% year‑over‑year—and operating income of $180.3 million, a 44.8% rise. Non‑GAAP operating margin expanded to 14.3%, up 230 basis points from the same period a year earlier, reflecting a more favorable mix and disciplined cost control.
The company’s Non‑GAAP diluted earnings per share were $0.95, beating analyst consensus estimates of $0.84 to $0.90 by $0.05 to $0.11. The beat was driven by a shift toward higher‑margin new‑education and overseas test‑preparation segments, as well as the continued integration of AI across its product lines, which helped maintain profitability even as overall revenue grew.
Segment performance highlighted growth in the company’s new‑education business, with 458,000 student enrollments in non‑academic tutoring and 367,000 active paid users for its intelligent learning system. Overseas test‑preparation revenue also expanded, contributing to the overall margin improvement and supporting the company’s strategic pivot toward digital and AI‑enabled learning solutions.
Management raised full‑year 2026 revenue guidance to $5.561 billion–$5.599 billion, a 13–14% increase from the prior year’s range. The upward revision signals confidence in sustained demand for the company’s diversified educational offerings and the continued monetization of its AI‑driven platforms.
Investor reaction to the results was muted, with market participants taking a cautious stance amid ongoing regulatory scrutiny of China’s education sector and competitive pressures in the digital learning space. The company’s guidance and earnings beat suggest operational resilience, but the broader macro environment remains a potential headwind.
Michael Yu, Executive Chairman, emphasized the company’s continued acceleration in revenue growth and the success of its non‑academic tutoring courses and intelligent learning system and devices. Stephen Yang, Executive President and Chief Financial Officer, noted that the strong results reinforce confidence in the company’s operational resilience and growth trajectory.
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