New Oriental Shares Tumble 5.09% Amid 142.45% Volume Surge to Top 500

New Oriental (EDU) fell 5.09% on July 30, 2025, with a trading volume of $250 million, up 142.45% from the previous day. The company reported Q4 2025 results showing a 9.4% year-over-year revenue increase to $1.24 billion, driven by growth in overseas test prep, domestic adult education, and new educational initiatives. Despite this, it posted an operating loss of $8.7 million, contrasting with a $10.5 million profit in the prior-year period. Net income attributable to New Oriental plummeted 73.7% to $7.1 million, though non-GAAP operating income rose 116.3% to $81.7 million, reflecting cost discipline and margin improvements.

Full-year 2025 revenue grew 13.6% to $4.9 billion, with net income rising 20.1% to $371.7 million. The board announced a new three-year shareholder return plan starting in FY2026, committing to return at least 50% of annual net income through dividends or buybacks. This follows the completion of a $700 million share repurchase program. Management highlighted progress in AI integration, OMO (online-merge-offline) teaching systems, and product innovation, aiming to enhance operational efficiency and brand strength.

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