TAL Education Group (NYSE:TAL) Posts Earnings Results

TAL Education Group (NYSE:TAL) announced its quarterly earnings data on Thursday. The company reported $0.23 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.04 by $0.19, Zacks reports. TAL Education Group had a net margin of 6.45% and a return on equity of 4.71%.

Here are the key takeaways from TAL Education Group’s conference call:

• Q3 net revenues rose 27% YoY to $770.2M (CNY 5,480.4M), with non-GAAP operating income of $104.0M and non-GAAP net income of $141.4M, indicating strong top-line recovery.
• Gross profit increased 35% YoY and gross margin expanded to 56.1%, with income from operations turning positive at $93.1M versus a loss a year ago, helped by disciplined cost and marketing control.
• The learning device business delivered volume growth and high engagement (~80% weekly active, ~1 hour/day) but remains in an investment phase with an adjusted operating loss, a blended ASP below CNY 4,000, and an uncertain break-even timeline.
• Strong liquidity and shareholder support: $2.15B cash & equivalents plus a board-authorized $600M share repurchase program (≈$27.7M repurchased to date) provide financial flexibility.
• Management flagged potential near-term variability and limited visibility—expecting moderated YoY growth in H2 FY26—due to seasonal demand shifts, competitive pressures, and deliberate resource reallocation for long-term initiatives.

TAL Education Group Stock Up 12.5%

TAL Education Group stock traded up $1.35 during midday trading on Thursday, hitting $12.11. The company’s stock had a trading volume of 8,802,802 shares, compared to its average volume of 3,872,507. The company has a market capitalization of $7.37 billion, a PE ratio of 41.95, a price-to-earnings-growth ratio of 0.66 and a beta of 0.06. TAL Education Group has a 12 month low of $8.50 and a 12 month high of $15.30. The stock’s 50-day moving average price is $11.13 and its 200-day moving average price is $11.11.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in TAL. Quarry LP purchased a new stake in shares of TAL Education Group in the 3rd quarter valued at approximately $42,000. Brooklyn Investment Group grew its holdings in TAL Education Group by 386.0% during the third quarter. Brooklyn Investment Group now owns 11,080 shares of the company’s stock valued at $124,000 after purchasing an additional 8,800 shares during the last quarter. Prelude Capital Management LLC bought a new stake in shares of TAL Education Group during the 3rd quarter worth $142,000. Dark Forest Capital Management LP bought a new position in TAL Education Group in the 3rd quarter worth $166,000. Finally, Credit Agricole S A bought a new stake in TAL Education Group during the third quarter valued at about $183,000. 37.79% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several research firms have issued reports on TAL. Wall Street Zen downgraded shares of TAL Education Group from a “buy” rating to a “hold” rating in a research note on Saturday, January 17th. JPMorgan Chase & Co. raised shares of TAL Education Group from a “neutral” rating to an “overweight” rating and set a $16.00 price objective for the company in a report on Thursday, October 30th. Zacks Research cut TAL Education Group from a “strong-buy” rating to a “hold” rating in a research note on Monday, December 29th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of TAL Education Group in a report on Monday, December 29th. One analyst has rated the stock with a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $12.81.

TAL Education Group Company Profile

TAL Education Group is a leading provider of after-school tutoring services in China, specializing in K-12 academic instruction. The company offers a range of programs designed to help primary and secondary school students strengthen their core competencies in subjects such as mathematics, English, Chinese language and science. TAL leverages both in-person learning centers and digital platforms to deliver its curriculum, aiming to support student progress through interactive lessons and personalized study plans.

Founded in 2003 and headquartered in Beijing, TAL Education Group has grown into one of China’s largest private education firms.