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Feb 28
New Oriental Q3 2025 Earnings Report
New Oriental reported steady Q3 performance with stable net income and growth in core education revenue excluding East Buy.
Key Takeaways
New Oriental's Q3 2025 earnings showed a slight revenue decline due to strategic restructuring, but core educational segments excluding East Buy saw double-digit growth. Net income held steady, reflecting strong operational discipline.
New Oriental
New Oriental
New Oriental Revenue by Segment
Forward Guidance
New Oriental expects a 10–13% revenue increase YoY (12–15% in RMB) for Q4 FY2025 excluding East Buy operations.
Positive Outlook
- Expects revenue growth of 10% to 13% YoY in Q4 FY2025 excluding East Buy.
- Continued investment in AI-enhanced educational tools.
- Strong momentum in non-academic education business.
- Facility utilization and cost reduction expected to improve margins.
- Increased enrollments in new business initiatives.
Challenges Ahead
- Ongoing pressure on operating margins from overseas-related and tourism-integrated businesses.
- Revenue growth slowdown in overseas segments.
- High G&A expenses impacting short-term profitability.
- Significant investment still required in AI and tech integration.
- Market uncertainties around regulatory shifts in private education.