New Oriental Surpasses Expectations and Raises Annual Forecast

New Oriental Education & Technology US6475812060

New Oriental Education & Technology Group Inc. has delivered a robust financial performance for its second fiscal quarter of 2026, exceeding market projections on key metrics. The strong report signals the company's effective navigation of the evolving regulatory landscape within China's education industry.

The company reported a significant earnings beat for the quarter. Adjusted earnings per share (EPS) came in at $0.45, substantially ahead of the consensus estimate of $0.34. Revenue growth was equally impressive, climbing 14.7% year-over-year to reach $1.19 billion, which also topped analyst forecasts.

This momentum has prompted management to issue an upgraded outlook. For the current third quarter ending February 28, New Oriental anticipates revenue in the range of $1.31 billion to $1.35 billion. More notably, the full fiscal year 2026 revenue forecast has been raised. The company now expects annual revenue between $5.29 billion and $5.49 billion, representing a projected growth rate of 8% to 12%.

Drivers of Growth and Strategic Focus

The double-digit revenue increase was primarily fueled by sustained demand for the company's K-12 tutoring services. A contributing factor was the continued recovery of its East Buy livestreaming e-commerce platform. To fortify its long-term market position, New Oriental is channeling investments into artificial intelligence initiatives aimed at enhancing and optimizing its educational product portfolio.

Shareholder Returns and Forward Look

In a move to return capital to investors, the company's board has approved a dividend of $1.20 per American Depositary Share (ADS) for fiscal 2026. This distribution is being made in two installments, with the first payment already completed.

All eyes will now turn to the upcoming quarterly results following the close of Q3 on February 28. These figures will be critical in assessing whether New Oriental can sustain its current growth trajectory against the backdrop of a transformed sector.