Loading...
•
Aug 31, 2025
New Oriental Q1 2026 Earnings Report
New Oriental's Q1 2026 earnings report was released, detailing financial and operating performance for the quarter ended August 31, 2025.
Key Takeaways
New Oriental reported a healthy start to fiscal year 2026 with total net revenues increasing by 6.1% year over year to $1,523.0 million, surpassing expectations. Operating income also saw a 6.0% increase, while net income attributable to New Oriental slightly decreased by 1.9%. The growth was primarily driven by new educational business initiatives and strong performance in domestic test preparation for adults and university students.
Total net revenues increased by 6.1% year over year to $1,523.0 million, exceeding the upper end of the company's expected range.
Operating income grew by 6.0% to $310.8 million, while non-GAAP operating margin improved by 100 basis points to 22.0%.
Net income attributable to New Oriental decreased by 1.9% to $240.7 million, and non-GAAP net income also saw a slight decrease of 1.6%.
New educational business initiatives recorded a significant revenue growth of 15.3%, and the domestic test preparation business for adults and university students grew by 14.4%.
Forward Guidance
New Oriental expects total net revenues for the second quarter of fiscal year 2026 to be between $1,132.1 million and $1,163.3 million, representing a year-over-year increase of 9% to 12%. The company also reaffirmed its full fiscal year 2026 revenue guidance of $5,145.3 million to $5,390.3 million, indicating a 5% to 10% year-over-year increase.
Positive Outlook
- Projected Q2 FY2026 revenue growth of 9% to 12% year over year.
- Reaffirmed full fiscal year 2026 revenue growth guidance of 5% to 10%.
- Continued focus on enhancing core education business and product capabilities.
- Strategic investment in OMO teaching system and AI technologies for improved learning experience.
- Expansion of AI application to streamline internal operations and enhance efficiency.
Challenges Ahead
- Forecasts are subject to change based on current and preliminary views.
- Guidance is based on the current USD/RMB exchange rate, which is subject to change.
- Challenges posed by the continued slowdown in overseas businesses.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...