New Oriental Education & Technology Group (NYSE:EDU) Releases Earnings Results, Beats Expectations By $0.11 EPS

New Oriental Education & Technology Group (NYSE:EDU) issued its quarterly earnings data on Wednesday. The company reported $0.45 earnings per share for the quarter, topping the consensus estimate of $0.34 by $0.11, Briefing.com reports. New Oriental Education & Technology Group had a net margin of 7.40% and a return on equity of 11.29%. The business had revenue of $1.19 billion during the quarter, compared to analysts’ expectations of $1.16 billion. During the same quarter in the previous year, the company earned $0.22 EPS. The business’s revenue was up 14.7% on a year-over-year basis.

Here are the key takeaways from New Oriental Education & Technology Group’s conference call:

• Strong Q2 results: Total net revenue rose 14.7% YoY to $1.19B, non?GAAP operating income more than tripled to $89.1M and non?GAAP net income increased 68.6%, with non?GAAP operating margin improving over 4 percentage points.
• Upgraded outlook and shareholder returns: Management raised Q3 and full?year FY2026 revenue guidance, declared a $0.12 ordinary dividend (first installment paid) and launched a $300M buyback (?1.6M ADS repurchased for $86.3M so far), supported by a strong cash and liquid asset position.
• New initiatives gaining traction: K?9 and high?school tutoring, non?academic tutoring (+22% YoY), intelligent learning systems/devices and AI/OMO investments are delivering improved retention, scalability and incremental revenue, while East Buy has expanded SKUs, shown early profitability (vending) and is contributing to both sales and margins.
• Overseas?related businesses remain a modest drag—overseas test prep grew only ~4% YoY and study consulting fell ~3%—and management expects overseas growth to be flattish to low single digits in the near term.

New Oriental Education & Technology Group Trading Up 0.7%

EDU opened at $59.36 on Friday. The company has a market cap of $9.38 billion, a P/E ratio of 25.15, a PEG ratio of 1.39 and a beta of 0.29. The company’s 50 day moving average is $55.00 and its 200-day moving average is $52.77. New Oriental Education & Technology Group has a 1-year low of $40.66 and a 1-year high of $63.78.

Wall Street Analyst Weigh In

EDU has been the subject of several analyst reports. Zacks Research raised New Oriental Education & Technology Group from a “strong sell” rating to a “hold” rating in a report on Monday, December 29th. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of New Oriental Education & Technology Group in a research note on Monday, December 29th. New Street Research set a $68.00 price objective on shares of New Oriental Education & Technology Group in a research report on Wednesday. JPMorgan Chase & Co. boosted their target price on shares of New Oriental Education & Technology Group from $60.00 to $68.00 and gave the company an “overweight” rating in a research report on Wednesday, October 29th. Finally, The Goldman Sachs Group restated a “neutral” rating and issued a $60.00 target price on shares of New Oriental Education & Technology Group in a research report on Wednesday, October 29th. Four research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. According to MarketBeat.com, New Oriental Education & Technology Group has a consensus rating of “Hold” and a consensus target price of $65.84.

Institutional Trading of New Oriental Education & Technology Group

Hedge funds and other institutional investors have recently modified their holdings of the stock. Caitong International Asset Management Co. Ltd increased its holdings in New Oriental Education & Technology Group by 7,314.3% in the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 519 shares of the company’s stock worth $28,000 after purchasing an additional 512 shares in the last quarter. Raymond James Financial Inc. bought a new position in New Oriental Education & Technology Group in the 2nd quarter valued at approximately $111,000. Brooklyn Investment Group boosted its position in New Oriental Education & Technology Group by 227.1% during the 3rd quarter. Brooklyn Investment Group now owns 3,820 shares of the company’s stock worth $203,000 after buying an additional 2,652 shares during the period. Cerity Partners LLC bought a new stake in New Oriental Education & Technology Group during the 2nd quarter worth approximately $221,000. Finally, Dark Forest Capital Management LP acquired a new stake in New Oriental Education & Technology Group in the third quarter valued at $220,000.

Trending Headlines about New Oriental Education & Technology Group

Here are the key news stories impacting New Oriental Education & Technology Group this week:

• Positive Sentiment: Q2 results beat consensus — EPS $0.45 vs. $0.34 expected and revenue $1.191B (+14.7% YoY), showing accelerating top-line growth that drove the initial rally. PR Newswire: Q2 results
• Positive Sentiment: Management framed the quarter as part of a “profitable growth” pivot on the earnings call, which supports the narrative of sustainable margin improvement and gave investors confidence. TipRanks: Earnings call highlights
• Positive Sentiment: HSBC upgraded EDU from Hold to Buy, adding institutional endorsement that can attract additional buying interest. The Fly: HSBC upgrade
• Positive Sentiment: Short interest declined ~23% in January (to ~4.2M shares), reducing one potential headwind and suggesting less bearish positioning. (Short interest data reported in market summary)
• Neutral Sentiment: FY2026 revenue guidance was issued at roughly $5.3B–$5.5B (near consensus ~$5.4B) and Q3 revenue guidance around $1.3B — guidance is broadly in line rather than clearly conservative or aggressive. PR Newswire: Guidance
• Neutral Sentiment: Wide media and transcript coverage (Yahoo/Seeking Alpha/MarketBeat) is increasing visibility but does not add new fundamental information beyond the beat and management commentary. Yahoo: Earnings transcript
• Negative Sentiment: Valuation and expectations — EDU trades at a mid-20s PE (reported) and a PEG near 1.3; if investors demand faster margin expansion or higher growth, the current multiple could limit further upside absent follow-through in future quarters. MarketBeat: Metrics & call

New Oriental Education & Technology Group Company Profile

New Oriental Education & Technology Group (NYSE: EDU) is one of China’s leading providers of private educational services, specializing in language training, test preparation and consulting for overseas study. The company’s offerings span a range of subjects, including English language instruction, preparatory courses for examinations such as the TOEFL, GRE and GMAT, and K-12 after-school tutoring. New Oriental’s curriculum is delivered through a combination of in-person learning centers and digital platforms, enabling students across various regions to access its educational resources.

Founded in 1993 by Michael Yu Minhong in Beijing, New Oriental began as a small language school and quickly expanded its footprint.