New Oriental Reports Strong Q2 FY2026 Results with 14.7% Revenue Growth, 244% Operating Income Surge, and Raised Full-Year Guidance

summarizeSummary

New Oriental announced strong Q2 FY2026 financial results, with net revenues up 14.7% and operating income surging 244.4% year-over-year, leading to a raised full-year revenue guidance.

check_boxKey Events

• Strong Q2 FY2026 Financial Performance

  Total net revenues increased by 14.7% year-over-year to US$1,191.4 million, while operating income surged by 244.4% to US$66.3 million, and net income attributable to New Oriental rose by 42.3% to US$45.5 million.

• Significant Operational Efficiency Gains

  Non-GAAP operating margin improved by 470 basis points year-over-year to 7.5%, driven by enhanced operational efficiency and improved utilization within the educational business.

• Raised Full-Year Fiscal 2026 Revenue Guidance

  The company raised its full-year fiscal 2026 total net revenue guidance to a range of US$5,292.3 million to US$5,488.3 million, representing an 8% to 12% year-over-year increase.

• Continued Share Repurchase Program

  As part of its shareholder return plan, the company has repurchased approximately 1.6 million ADSs for an aggregate consideration of US$86.3 million under its US$300 million share repurchase program.

auto_awesomeAnalysis

New Oriental Education & Technology Group Inc. delivered a robust second fiscal quarter, showcasing significant top-line growth and exceptional improvements in profitability. The substantial increase in operating income and net income, coupled with a notable expansion in non-GAAP operating margin, indicates strong operational efficiency and effective business strategies. The decision to raise full-year revenue guidance signals management's confidence in continued positive momentum. Furthermore, the ongoing share repurchase program and the turnaround to profitability of its East Buy subsidiary are additional positive indicators for shareholders.