TAL Education Group's Q4 Earnings Exceed Analyst Expectations, Analysts Raise Price Targets

TAL Education Group reported Q4 results in line with analyst predictions, with revenues of $575m and statutory earnings per share of $0.14. Analysts have updated their earnings model, with 22 analysts forecasting revenues of $2.98b in 2026, a 24% increase from the previous year, and statutory earnings per share of $0.28, a 63% increase. The consensus price target rose 5.0% to $12.88, with estimates ranging from $11.00 to $16.85.

Title: TAL Education Group Reports Q4 Results, Analysts Optimistic for 2026

TAL Education Group, a leading smart learning solutions provider in China, has released its unaudited financial results for the first quarter of fiscal year 2026. The company reported net revenues of US$575.0 million, a 38.8% increase compared to the same period last year. This growth was driven by solid progress in both learning services and AI-powered devices, as stated by Alex Peng, the company's President and Chief Financial Officer.

Key highlights include:
- Revenue Growth: Net revenues increased by 38.8% to US$575.0 million.
- Operating Income: Income from operations improved to US$14.3 million, compared to a loss of US$17.3 million in the previous year.
- Non-GAAP Income: Non-GAAP income from operations, excluding share-based compensation expenses, reached US$25.1 million, up from US$0.9 million.
- Net Income: Net income attributable to TAL increased to US$31.3 million, a significant improvement from US$11.4 million.
- Gross Profit: Gross profit grew by 47.3% to US$315.4 million.

Analysts have responded positively to the results, updating their earnings model for the year. According to 22 analysts, revenues are forecasted to reach US$2.98 billion in 2026, a 24% increase from the previous year. Statutory earnings per share are expected to reach US$0.28, a 63% increase. The consensus price target has risen by 5.0% to US$12.88, with estimates ranging from US$11.00 to US$16.85.

The company also announced a new share repurchase plan, authorizing the repurchase of up to US$600 million of its common shares over the next 12 months. This move is expected to be funded from the company's existing cash balance.

TAL Education Group will host a conference call to discuss its financial results on July 31, 2025, at 8:00 a.m. Eastern Time. The call will be available via webcast on the company's investor relations website.

References
[1] https://finance.yahoo.com/news/tal-education-group-announces-unaudited-090000305.html