Why did TAL's Q3 2025 earnings exceed forecasts so significantly?

TAL Education Group's Q3 2025 earnings exceeded forecasts due to several key factors:

1. **Revenue Growth**: TAL reported a 62.4% year-over-year increase in net revenues, reaching $606.4 million. This substantial growth was driven by strong demand for their educational services, particularly in the Peiyou enrichment small class programs and learning devices.
2. **New Product Launches**: The introduction of new products, such as the Xbook, contributed to the revenue growth. These products received positive initial feedback and featured innovative AI-driven functionalities.
3. **Market Recognition**: TAL's AI learning devices continued to be a fast-growing business line, receiving encouraging user feedback and market recognition.
4. **Strategic Investments**: Despite facing margin pressures, TAL's strategic investments in new product launches and expanded services paid off, contributing to the revenue surge.

In summary, TAL's earnings exceeded forecasts due to a combination of strong revenue growth, new product launches, and market recognition, despite facing challenges in profitability and market competition.