Q1 Revenue Jumps 23% to $1.87B, EPS $1.74; New $2/ADS Annual Dividend Set

Updates

1. Oct 28, 6:23 AM ET · SEC 6-K — New Oriental's Q1 FY27 operating costs and expenses rose 23.7% to $1,499.8M, with cost of revenues up 28.1% to $817.0M.

   • Costs and Expenses — Operating costs and expenses rose 23.7% to $1,499.8M; cost of revenues up 28.1% to $817.0M. Selling and marketing rose 30.7% to $262.2M, G&A up 12.6% to $420.7M, and share-based compensation rose 31.3% to $30.6M.
   • Segment Revenue Growth — Overseas test prep and consulting revenue grew about 7.7% and domestic adult/university test prep about 22.3%. New educational business initiatives revenue grew about 24.7% year over year.
   • Student and User Metrics — Non-academic tutoring reached about 60 cities with roughly 476,000 student enrollments; intelligent learning systems and devices spanned about 60 cities with roughly 515,000 active paid users. New Oriental Home served over 1,678,000 families across 69 cities.
   • East Buy Operations — East Buy's private label portfolio expanded to over 1,000 SPUs, with a Douyin matrix of over 30 vertical accounts. It has four offline experience stores and one-hour delivery trials in Beijing and Shanghai.
   • Balance Sheet — Net income was $283,085 thousand, with $9,929 thousand attributable to non-controlling interests and an income tax provision of $105,153 thousand. Total assets were $8,861,188 thousand and total liabilities $4,256,219 thousand; total equity $4,604,969 thousand.
   • Share Count — Weighted average basic shares were 1,549,386,735 and diluted 1,568,825,658, versus prior-year 1,587,936,854 basic and 1,598,588,465 diluted.
   • Dividend Payable — Dividend payable was nil at August 31, 2026, compared with US$93,413 thousand at May 31, 2026.
   • Buyback Funding — The 2027 Share Repurchase Program of up to $200 million over 12 months is funded from the existing cash balance; the board may adjust its terms and size.
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   • Net income attributable to New Oriental rose 13.5% to $273.2M; basic EPS $1.76, diluted $1.74 per ADS.
   • Non-GAAP operating income $406.8M, up 21.2%; non-GAAP operating margin 21.7% vs 22.0%.
   • Non-GAAP net income $300.9M, up 16.5%; non-GAAP basic and diluted EPS per ADS $1.94 and $1.92.
   • Operating costs and expenses rose 23.7% to $1,499.8M; cost of revenues up 28.1% to $817.0M.
   • Selling and marketing expenses rose 30.7% to $262.2M; G&A up 12.6% to $420.7M.
   • Share-based compensation expenses rose 31.3% to $30.6M.
   • Overseas test prep and consulting revenue grew about 7.7%; domestic adult/university test prep about 22.3%.
   • New educational business initiatives revenue grew about 24.7% year over year.
   • Non-academic tutoring reached about 60 cities with roughly 476,000 student enrollments.
   • Intelligent learning system and devices across about 60 cities with roughly 515,000 active paid users.
   • New Oriental Home served over 1,678,000 families across 69 cities by quarter end.
   • East Buy private label portfolio expanded to over 1,000 SPUs; Douyin matrix over 30 vertical accounts.
   • East Buy has four offline experience stores and one-hour delivery trials in Beijing and Shanghai.
   • Net operating cash inflow $195.4M; capital expenditures $65.8M for the quarter.
   • Deferred revenue $2,121.1M, up 11.2% from $1,906.7M a year earlier.
   • FY2027 total net revenues guidance confirmed at US$6,453.9 million to US$6,680.3 million, a year-over-year increase of 14% to 18%.
   • 2026 Share Repurchase Program fully utilized: US$300 million repurchased for approximately 56.2 million common shares (including common shares represented by ADSs) from the open market as of October 27, 2026.
   • 2027 Share Repurchase Program: up to US$200 million of ADSs or common shares over the 12 months following board approval; no common shares repurchased as of October 27, 2026.
   • Weighted average basic shares 1,549,386,735; diluted 1,568,825,658, versus prior-year 1,587,936,854 basic and 1,598,588,465 diluted.
   • Net income $283,085 thousand; net income attributable to non-controlling interests $9,929 thousand; provision for income taxes $105,153 thousand.
   • Other income, net $15,317 thousand; loss from fair value change of investments $1,818 thousand; gain from equity method investments $79 thousand.
   • Net cash used in investing activities $178,858 thousand; net cash used in financing activities $167,683 thousand; effect of exchange rate changes $8,068 thousand.
   • Cash, cash equivalents and restricted cash at end of period $1,953,409 thousand versus $2,096,490 thousand at beginning of period.
   • Dividend payable was nil at August 31, 2026, compared with US$93,413 thousand at May 31, 2026.
   • Deferred revenue was US$2,121.1 million at August 31, 2026, an increase of 11.2% compared to US$1,906.7 million at the end of the first quarter of fiscal year 2026.
   • New Oriental shareholders' equity $4,244,470 thousand; non-controlling interests $360,499 thousand; total equity $4,604,969 thousand.
   • Total assets $8,861,188 thousand; total liabilities $4,256,219 thousand as of August 31, 2026.
   • Common share transfer documents with share certificates must be lodged with Computershare Hong Kong Investor Services Limited, Shops 1712-1716, 17th Floor, Hopewell Centre, 183 Queen's Road East, Wanchai, Hong Kong by 4:30 p.m. November 18, 2026.
   • 2027 Share Repurchase Program up to $200 million over 12 months; no shares repurchased as of October 27, 2026; funded from existing cash balance; board may adjust terms and size.