This article first appeared on GuruFocus.
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Total Net Revenue: $1,529.5 million, a 23% year-over-year increase.
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Non-GAAP Operating Income: $110 million, a 34.7% year-over-year increase.
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Operating Income: $85.8 million, compared to an operating loss of $8.7 million in the prior year period.
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Net Income: $62.2 million, a 775.8% year-over-year increase.
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Non-GAAP Net Income: $87.8 million, a 10.5% year-over-year decrease.
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Operating Costs and Expenses: $1,443.7 million, a 15.3% year-over-year increase.
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Cost of Revenues: $717.3 million, a 25.9% year-over-year increase.
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Selling and Marketing Expense: $262.5 million, a 23.9% year-over-year increase.
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G&A Expenses: $463.9 million, a 13.2% year-over-year increase.
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Net Cash Inflow from Operations: $518.7 million for the fourth quarter.
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Capital Expenditure: $99 million for the quarter.
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Cash and Cash Equivalents: $1,821.2 million as of May 31, 2026.
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Deferred Revenue: $2,242.9 million, a 14.8% year-over-year increase.
Release Date: July 29, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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New Oriental Education & Technology Group Inc (NYSE:EDU) reported a 23% year-over-year increase in total net revenue for the fourth quarter of fiscal year 2026.
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The company’s non-GAAP operating income rose by 34.7% to $110 million, indicating strong operational performance.
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New educational business initiatives delivered a 25% year-over-year revenue increase, showcasing successful diversification efforts.
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The company’s AI-powered personalized learning platform achieved meaningful sales within 25 days of launch, highlighting successful innovation.
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East Buy’s multi-platform live streaming strategy on Douyin expanded to 18 channels, enhancing customer engagement and operational efficiency.
Negative Points
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Operating costs and expenses increased by 15.3% year over year, impacting overall profitability.
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Cost of revenues rose by 25.9% year over year, indicating increased expenditure in delivering services.
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Selling and marketing expenses increased by 23.9% year over year, which could pressure margins if not managed effectively.
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Non-GAAP net income attributable to New Oriental decreased by 10.5% year over year, reflecting challenges in maintaining profitability.
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The overseas-related business faced growth pressure due to economic and international challenges, with expectations of low single-digit growth.
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