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

New Oriental Education & Technology Group (NYSE:EDU) released its quarterly earnings data on Wednesday. The company reported $0.45 EPS for the quarter, topping the consensus estimate of $0.34 by $0.11, Briefing.com reports. New Oriental Education & Technology Group had a return on equity of 10.77% and a net margin of 7.36%.The business had revenue of $1.19 billion for the quarter, compared to analyst estimates of $1.16 billion. During the same quarter in the prior year, the firm posted $0.22 EPS. The business’s quarterly revenue was up 14.7% compared to the same quarter last year.

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 3.4%

NYSE:EDU traded up $1.89 during mid-day trading on Wednesday, reaching $57.86. 1,240,764 shares of the stock were exchanged, compared to its average volume of 775,425. New Oriental Education & Technology Group has a 1-year low of $40.66 and a 1-year high of $63.78. The firm has a market capitalization of $9.14 billion, a PE ratio of 25.45, a PEG ratio of 1.31 and a beta of 0.29. The business has a fifty day moving average price of $54.72 and a 200 day moving average price of $52.68.

Trending Headlines about New Oriental Education & Technology Group

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

• Positive Sentiment: Quarterly beat — New Oriental reported $0.45 EPS vs. $0.34 consensus and revenue of $1.191B vs. $1.16B expected; revenue rose 14.7% year-over-year, and net margin/ROE remain healthy. This earnings surprise is the primary catalyst for the share strength. Investing.com coverage
• Positive Sentiment: Company press release and filings confirm the results and provide detail on segment performance and financials — useful for modeling next quarters. PR Newswire release
• Positive Sentiment: Reduced short interest — January short interest fell ~23% (to ~4.2M shares), lowering potential short-squeeze risk and signaling reduced bearish positioning. This can support the stock on positive news. (Data reported 1/27)
• Neutral Sentiment: Guidance update unclear/partial — Management issued third-quarter revenue guidance ~ $1.3B but EPS guidance was not clearly provided in the bulletin; clarity on margins and enrollment trends will matter for forward estimates. See company announcement for details. Company press release / report
• Neutral Sentiment: Conference call & investor materials available — Management commentary on demand trends, margin drivers and channel mix will be the next market focus; listen to the call or read the transcript for color. MarketBeat transcript / press link
• Neutral Sentiment: Third-party commentary/comparisons — Broker and media comparisons (including a Nerdy/EDU comparison) may influence investor framing but are secondary to the company’s reported results. Comparative analysis

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on EDU shares. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of New Oriental Education & Technology Group in a research note on Monday, December 29th. JPMorgan Chase & Co. lifted their price target on shares of New Oriental Education & Technology Group from $60.00 to $68.00 and gave the stock an “overweight” rating in a research note on Wednesday, October 29th. Zacks Research upgraded New Oriental Education & Technology Group from a “strong sell” rating to a “hold” rating in a research note on Monday, December 29th. Finally, The Goldman Sachs Group reiterated a “neutral” rating and issued a $60.00 price target on shares of New Oriental Education & Technology Group in a report on Wednesday, October 29th. Three analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $65.30.

Institutional Investors Weigh In On New Oriental Education & Technology Group

A number of institutional investors have recently modified their holdings of EDU. Two Sigma Investments LP bought a new stake in New Oriental Education & Technology Group in the 3rd quarter valued at about $494,000. Mackenzie Financial Corp increased its stake in shares of New Oriental Education & Technology Group by 77.4% in the third quarter. Mackenzie Financial Corp now owns 67,737 shares of the company’s stock valued at $3,595,000 after buying an additional 29,562 shares during the period. Headlands Technologies LLC bought a new position in New Oriental Education & Technology Group during the second quarter worth $1,061,000. Vident Advisory LLC increased its stake in shares of New Oriental Education & Technology Group by 17.3% in the 2nd quarter. Vident Advisory LLC now owns 5,426 shares of the company’s stock valued at $293,000 after acquiring an additional 800 shares in the last quarter. Finally, Man Group plc bought a new position in New Oriental Education & Technology Group in the second quarter worth approximately $4,883,000.

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.