New Oriental Delivers 23% Revenue Growth, Swings to Profit, and Launches $200M Buyback
EDU sits 25% above its 52-week low of $41.62.
Summary
New Oriental reported Q4 FY2026 revenue of $1.53B (+23% YoY) and swung to an operating profit of $85.8M. Full-year revenue hit $5.66B with operating income up 50%. The company guided for 14–18% revenue growth in FY2027 and announced a new $200M buyback and $300M dividend.
Key Events · Earnings and Guidance · EDU
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Q4 Revenue +23%, Swings to Profit
Fourth-quarter net revenues rose 23% year over year to $1,529.5M, driving a swing to operating income of $85.8M from a loss of $8.7M a year ago. Net income attributable to New Oriental surged 775.8% to $62.2M.
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Full-Year Operating Income +50%
For the full year, net revenues grew 15.5% to $5,661.3M, while operating income increased 50.2% to $643.3M and net income rose 27.8% to $475.2M. Non-GAAP operating margin expanded 170 basis points to 13.0%.
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FY2027 Revenue Guidance of 14–18% Growth
Management expects FY2027 net revenues between $6,453.9M and $6,680.3M, representing 14% to 18% year-over-year growth.
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New $200M Buyback and $300M Dividend
The board approved a new $200M share repurchase program and an ordinary cash dividend of approximately $300M for FY2027, to be paid in two installments.
Analysis · EDU · Trade & Services
A strong fourth quarter saw revenue climb 23% to $1.53B and operating income swing to $85.8M from a loss a year ago, fueled by new educational initiatives. For the full year, operating income jumped 50% to $643M on 15.5% revenue growth. Looking ahead, management guided for 14–18% revenue growth in FY2027 and unveiled a new $200M buyback plus a $300M dividend, underscoring confidence and a commitment to shareholder returns. The results and capital return programs reinforce the recovery narrative and could support the stock.
At the time of this filing, EDU was trading at $52.00 on NYSE in the Trade & Services sector, with a market capitalization of approximately $8.2B. The 52-week trading range was $41.62 to $64.97. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.