What factors drove the changes in New Oriental's revenue and profit?

What is New Oriental's latest dividend and current dividend yield?

What is the market's earnings forecast for New Oriental next quarter?

Did New Oriental beat or miss consensus estimates last quarter?

What is New Oriental's gross profit margin?

What does New Oriental do and what are its main business segments?

What guidance did New Oriental's management provide for the next earnings period?

What were the key takeaways from New Oriental's earnings call?

- **Revenue Growth**: Q2 net revenue up 14.7% YoY to $1.19 billion, with K-12 business driving +20%+ Q3 growth.
- **Profit Expansion**: Non-GAAP net income +68.6% YoY to $72.9 million, operating margin up 470bps YoY.
- **New Initiatives**: AI investments boosting retention and efficiency, East Buy SPUs expanded to 801.
- **Guidance**: Full FY2026 revenue expected +8-12% YoY, with $300M share buyback underway.
- **Cost Control**: Selling expenses down 1.1% YoY, operating cash flow $323.5M.

**【Management Opening Remarks】**
- CFO Zhihui Yang highlighted a strong Q2 performance with total net revenue growing 14.7% YoY to $1.19 billion, driven by core education and new initiatives.
- Non-GAAP operating income surged 206.9% to $89.1 million, with non-GAAP net income up 68.6% to $72.9 million.
- Key segments showed resilience: K-9 education grew faster than previous quarter, overseas test prep +4% YoY, and adults/university students +13% YoY.

**【CFO Financial Commentary】**
- Operating expenses totaled $1.12 billion (+10.4% YoY), with cost of revenues up 11.8% to $566.9 million.
- Selling & marketing expenses decreased 1.1% YoY to $194 million, reflecting cost control.
- Non-GAAP net income attributable to New Oriental was $72.9 million, up 68.6% YoY.
- Cash & cash equivalents stood at $1.84 billion, with $323.5 million in Q2 operating cash flow.

**【Outlook & Guidance】**
- Q3 2026 revenue expected in $1.31-1.35 billion range (11-14% YoY growth).
- Full FY2026 revenue guidance raised to $5.29-5.49 billion (8-12% YoY growth).
- Share buyback program authorized for up to $300 million, with $86.3 million repurchased as of January 27.

**【Q&A Highlights】**
- **K-12 Growth**: Q3+20% YoY growth expected, driven by 10% learning center expansion and higher retention rates.
- **Overseas Business**: Test prep +4% YoY, study consulting -3% YoY, with plans to merge test prep & consulting units for efficiency gains.
- **AI Impact**: AI investments improving customer retention, operational efficiency, and new product development.
- **Margin Expansion**: Non-GAAP operating margin up 470bps YoY in Q2, with further expansion expected in H2.
- **East Buy Contribution**: Private label SPUs expanded to 801, with vending machines now profitable in select cities.

New Oriental Education & Technology Group Inc. (EDU) Q2 2026 Earnings Call Transcript

- **Revenue Growth**: 6.1% YoY to $1.13B, with new educational initiatives up 15% and K-12 K-9 business targeting 20%+ growth.
- **Profitability**: Non-GAAP operating margin 22% (+100bps YoY), supported by $190M dividend & $300M buyback plan.
- **Strategic Focus**: AI-powered learning devices, non-academic tutoring (60 cities), and East Buy e-commerce expansion driving long-term growth.
- **Risk Management**: Conservative guidance for overseas business (-low single digits YoY) amid external headwinds.

**【CFO Financial Commentary】**
- Total net revenue increased 6.1% YoY to $1.13 billion, driven by strong operational efficiency and cost management.
- Non-GAAP operating margin improved 100bps to 22%, with non-GAAP net income of $258.3 million (+1.6% YoY).
- Key business segments:
  - Overseas test prep: +1% YoY
  - Adults/university students: +14% YoY
  - New educational initiatives: +15% YoY (non-academic tutoring & AI learning systems)
- East Buy e-commerce: Nutritional food line outperformed, with 10% YoY growth in deferred revenue.

**【Q&A Highlights】**
- **K-12 Growth Acceleration**: Q2 K-9 revenue expected +20% YoY, driven by 80%+ student retention rates. Full-year K-12 growth target: 20%+ for K-9, double-digit for high school.
- **Shareholder Return Plan**: $190M dividend (50% payout ratio) + $300M share buyback program. ETR may remain elevated due to dividend withholding taxes.
- **SBC Expense**: Q1 SBC jumped to $23.3M due to 3-year equity grants; expect similar quarterly levels.
- **Overseas Business**: Test prep younger age group (+25% YoY), consulting non-US/UK markets outperform. Q2 overseas revenue expected -low single digits YoY.
- **Margin Outlook**: Q2 operating margin expansion to exceed Q1, with focus on cost control across all business lines.

New Oriental Education & Technology Group Inc. (EDU) Q1 2026 Earnings Call Transcript

- **Q4 Growth Stars**: Core education (+18.7% YoY), AI-driven devices, and tourism (+71% YoY) lead the charge.
- **Profitability Boost**: Non-GAAP margin up 410 bps to 6.5%, fueled by cost control and AI investments.
- **FY26 Outlook**: Q1 cautious (2%-5% growth), but full-year target of 5%-10% reflects accelerating growth post-Q1.
- **Shareholder Value**: $700M buyback completed; 50%+ of FY26 profits to be returned via dividends/buybacks.
- **Risks**: Economic uncertainty weighs on overseas business; tourism faces model refinement.

**【Management Opening Remarks】**
- Q4 2025 total net revenue (excluding East Buy) grew 18.7% YoY, driven by new ventures like non-academic tutoring and AI-powered learning devices.
- Non-GAAP operating margin improved 410 bps to 6.5%, reflecting cost control and efficiency gains.
- Key businesses showed strong growth: overseas test prep (+15%), adults/university students (+17%), and new education initiatives (+33% YoY).

**【CFO Financial Commentary】**
- **Core Education Performance**: 
  - Overseas test prep revenue up 15% YoY; overseas study consulting up 8%.
  - Non-academic tutoring rolled out to 60 cities, with top 10 cities contributing 60% of revenue.
  - AI learning devices tested in 60 cities, showing improved customer retention.
- **Integrated Tourism Growth**: Study tours and camps grew 71% YoY, with 55 cities contributing 50% of revenue.
- **AI Investments**: $28M spent on OMO platform upgrades; launched AI-powered learning devices and smart study solutions.
- **East Buy Update**: Private label products gained market share; FY25 revenue growth driven by multichannel strategy.

**【Key Financial Details】**
- Operating expenses: $1.25B (11.2% YoY increase), driven by G&A (+9.1%) and share-based compensation (+11%).
- Net income: $7.1M (73.7% YoY decline); Non-GAAP net income: $98.1M (59.4% YoY growth).
- Cash flow: $399.1M from operations; capital expenditures $65.9M.
- Deferred revenue: $1.95B (9.8% YoY increase).

**【FY 2026 Guidance】**
- **Q1 2026**: Revenue $1.46B-$1.51B (2%-5% YoY), conservative due to high base and Chinese New Year timing.
- **Full Year 2026**: Revenue $5.15B-$5.39B (5%-10% YoY), with growth accelerating post-Q1.
- **Shareholder Return Plan**: 50%+ of FY26 GAAP net income allocated to dividends and buybacks.

**【Q&A Highlights】**
- **Q1 Drag Factors**: Economic uncertainty, early Chinese New Year, and East Buy restructuring.
- **Margin Outlook**: Cost control to drive 100-150 bps margin expansion in FY26.
- **Learning Center Expansion**: 10%-15% new centers, focused on high-growth cities.
- **Tourism Business**: Slower growth in FY26 as model matures; FY25 revenue up 71% YoY.
- **Dividend Preference**: Board considering regular dividend vs. buybacks based on market conditions.

New Oriental Education & Technology Group Inc. (EDU) Q4 2025 Earnings Call Transcript

- **Revenue Growth**: Core education business (excluding East Buy) up 21.2% YoY, driven by new ventures.
- **Margin Expansion**: Operating margins improved to 12.1% (GAAP) and 13.3% (Non-GAAP).
- **Q4 Guidance**: $1.01-1.04 billion (10-13% YoY growth in USD, 12-15% in RMB).
- **AI Impact**: AI tools enhance learning outcomes, reduce costs, and boost efficiency.
- **Share Repurchase**: $695.5 million repurchased under $700 million program; considering additional returns.
- **Risks**: Overseas business growth constrained by macroeconomic and geopolitical factors.


**【CEO & CFO Opening Remarks】**
- Total net revenue (excluding East Buy) grew 21.2% YoY, driven by new ventures like nonacademic tutoring (+35%), smart education solutions, and integrated tourism (+85%).
- Operating margins improved to 12.1% (GAAP) and 13.3% (Non-GAAP), excluding East Buy contributions.
- Q4 2025 revenue guidance: $1.01-1.04 billion (10-13% YoY growth in USD, 12-15% in RMB).

**【Business Segment Breakdown】**
1. **Overseas Test Prep & Consulting**: 
   - Test prep revenue +7% YoY, consulting +21% YoY.
   - Anticipate 5-10% growth in Q4, 0-5% in FY26 due to macroeconomic headwinds.
2. **Adult & University Students**: +17% YoY, driven by demand for career training and exam prep.
3. **New Ventures**: 
   - Nonacademic tutoring expanded to 60 cities, top 10 cities contribute 60% of revenue.
   - AI-powered learning devices in 60 cities, top 10 cities account for 50%.
4. **Integrated Tourism**: 
   - Conducted 55-city study tours, targeting K-12 and university students.
   - Senior travel products launched in 30 provinces, contributing 50% of segment revenue.

**【AI & Technology Investments】**
- AI tools (essay grading, speaking assessment) improve learning outcomes and reduce teacher workload.
- AI content creation platform enhances lesson planning efficiency.
- AI-driven FAQ database cuts sales training costs and boosts conversion rates.

**【Cost Control & Margin Expansion】**
- Q4 2025: Non-GAAP operating margin for core education business expected to expand YoY.
- FY26: Target 5%+ headquarters expense ratio (vs. 6% in FY25), 10-15% new learning center capacity expansion.

**【Share Repurchase & Dividends】**
- Repurchased $695.5 million of ADSs under $700 million program.
- Board considering additional shareholder returns (dividends/repurchase) in FY26.

**【Q&A Highlights】**
- **K-9 Enrollment Growth**: 15% YoY (lower than expected due to timing and enrollment consolidation).
- **Learning Devices vs. Offline Courses**: Devices complement offline courses, with users up 54% YoY.
- **Margin Sustainability**: Cost control measures (facility utilization, workforce efficiency) to offset top-line growth deceleration.
- **Overseas Business Risk**: Geopolitical tensions and economic slowdowns may limit recovery.


New Oriental Education & Technology (EDU)-23 Apr 25-2025 Q3 Earnings call transcript

- **Revenue Outperformance**: Core education revenue grew 31.3% YoY, driven by 43% expansion in new ventures like non-academic tutoring and smart devices.
- **Profitability Improvement**: Operating margin expanded to 2.8% (non-GAAP 3.2%), supported by deferred revenue growth of 19.2% YoY.
- **East Buy Contribution**: Private label GMV reached 37% of total, with offline vending machines now integrated into learning centers.
- **Q3 Guidance Caution**: 18-21% YoY growth reflects macroeconomic headwinds, but management targets margin expansion through selective learning center expansion.
- **Shareholder Value**: $700 million buyback program (54% executed) and $100 million dividend highlight commitment to returns amid cautious growth.


**【Management Opening Remarks】**
- Sisi Zhao welcomed participants and outlined the agenda, emphasizing the company's commitment to transparency and long-term value creation.
- The call highlighted the exclusion of East Buy's private label products and livestreaming business from core education metrics to better reflect operational performance.

**【CFO Financial Overview】**
- **Revenue Growth**: Total net revenue increased 19.4% YoY, with core education business (excluding East Buy) up 31.3% YoY. New ventures, including non-academic tutoring and smart education, contributed 43% YoY growth.
- **Profitability**: Operating margin reached 2.8% (non-GAAP 3.2%), driven by cost control and expanding learning centers. Deferred revenue grew 19.2% YoY to $1.96 billion.
- **East Buy Performance**: Private label GMV contributed 37% of total GMV over six months, with offline vending machines now operational in learning centers.
- **Financial Health**: Cash and short-term investments totaled $4.8 billion, supporting a $700 million share buyback program (with $542.8 million executed as of January 2025) and a $100 million special dividend.

**【Q3 2025 Guidance】**
- Core education revenue (excluding East Buy) expected to grow 18-21% YoY ($1.007-1.033 billion), reflecting macroeconomic uncertainty and high-end business slowdowns.
- Management prioritizes balancing revenue growth with margin expansion, targeting learning center expansion in high-performing cities.

**【Key Business Updates】**
- **Non-Academic Tutoring**: 994,000 student enrollments across 60 cities, with top 10 cities contributing 60% of revenue.
- **Smart Education Devices**: 50% revenue from top 10 cities, leveraging AI and ChatGPT for personalized learning.
- **Tourism Business**: 233% YoY growth, with study tours operating in 55 cities and senior travel offerings in 30 provinces.
- **OMO Platform Investment**: $30.9 million spent on platform upgrades to enhance user experience and support service diversification.

**【Q&A Highlights】**
- **Macro Impact**: High-end overseas test prep and one-on-one tutoring growth slowed to 15% YoY (vs. 20% prior guidance), driven by economic uncertainty.
- **New Business Momentum**: Non-academic tutoring and smart devices maintain 40%+ YoY growth, with ASP increases offsetting volume growth.
- **Learning Center Efficiency**: New centers breakeven within six months, with utilization rates improving due to prior expansion.
- **Regulatory Compliance**: Management remains neutral on regulatory risks, focusing on obtaining local licenses for new learning centers.
- **Shareholder Returns**: Board to discuss 2025 dividend policy in July; buyback program extended to May 2025 with no cap on execution pace.


Actual																	0.86	0.08	1.09	0.33	0.9	0.1		-0.72	-0.94	0.48	0.01	0.56	0.37	1.13	0.03	0.63	0.22	1.6	0.22	0.7	0.61	1.61	0.45
Forecast																	0.7532	0.2668	0.9603	0.2577	0.6283	0.2521	-1.4869	-1.1	-0.2084	0.16	0.0367	0.125	0.4871	0.795	0.26	0.728	0.449	1.4655	0.3	0.734	0.382	1.5	0.3425
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	+14.18%	-70.01%	+13.51%	+28.06%	+43.24%	-60.33%	0.00%	+34.55%	-351.06%	+200.00%	-72.75%	+348.00%	-24.04%	+42.14%	-88.46%	-13.46%	-51.00%	+9.18%	-26.67%	-4.63%	+59.69%	+7.33%	+31.39%

Actual	--	--	--	--	--	--	--	--	--	--	--	--	--	--	--	--	923.22M	798.47M	986.37M	887.69M	1.19B	1.16B	--	614.09M	524.02M	744.82M	638.21M	754.15M	860.57M	1.10B	869.60M	1.21B	1.14B	1.44B	1.04B	1.18B	1.24B	1.52B	1.19B
Forecast	--	--	--	--	--	--	--	--	--	--	--	--	--	--	--	--	924.94M	796.63M	952.58M	885.88M	1.14B	1.13B	595.89M	319.22M	517.38M	689.08M	614.16M	715.53M	817.49M	1.01B	819.61M	1.09B	1.14B	1.45B	1.01B	1.22B	1.19B	1.51B	1.16B
Surprise	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	-0.19%	+0.23%	+3.55%	+0.20%	+4.51%	+3.21%	0.00%	+92.37%	+1.28%	+8.09%	+3.92%	+5.40%	+5.27%	+8.86%	+6.10%	+10.52%	-0.03%	-0.71%	+2.35%	-2.99%	+4.45%	+0.94%	+2.64%

EDU

EDU fundamentals

EDU Q2 2026 Earnings

Earnings Call

You can ask Aime

EDU

EDU fundamentals

EDU Q2 2026 Earnings

Earnings Call

EDU Earnings Call Summary for Q2/20268:00 AM on Jan 28, 2026

EDU Earnings Call Summary for Q1/20268:00 AM on Oct 28, 2025

EDU Earnings Call Summary for Q4/20258:00 AM on Jul 30, 2025

EDU Earnings Call Summary for Q3/20258:00 AM on Apr 23, 2025

EDU Earnings Call Summary for Q2/20258:00 AM on Jan 21, 2025

You can ask Aime