New Oriental guides FY2027 revenue up 18% as Q4 profit surges

New Oriental reported Q4 revenue of $1.53 billion, up 23%, and guided FY2027 revenue 14% to 18% higher.

"These results reflect the soundness of our core education strategy and our unwavering commitment to elevating teaching standards and product quality," Michael Yu, Executive Chairman of New Oriental, said.

Net income attributable to New Oriental reached $62.2 million for the quarter ended May 31, a 776% jump from $7.1 million a year earlier, when the company recorded a $60.3 million goodwill impairment. Operating income swung to $85.8 million from an $8.7 million loss. Non-GAAP operating margin expanded 60 basis points to 7.2%, driven by improved utilization in the education business and East Buy's profitability, CFO Stephen Zhihui Yang said.

For the full fiscal year 2026, revenue rose 15.5% to $5.66 billion, while operating income climbed 50% to $643.3 million. Non-GAAP operating margin widened 170 basis points to 13%. The company's domestic test preparation business targeting adults and university students grew 29% year over year, and new education initiatives — including non-academic tutoring and intelligent learning systems — gained 25%. Non-academic tutoring attracted about 1.07 million student enrollments across 60 cities, while the intelligent learning system had roughly 326,000 active paid users.

East Buy, New Oriental's livestreaming e-commerce arm, expanded its Douyin channel matrix to 18 accounts covering food, fresh produce and nutrition. The company said East Buy will open offline experience stores through New Oriental's learning centers in fiscal 2027.

New Oriental's board approved a $300 million dividend for fiscal 2027, payable in two installments in December 2026 and June 2027, and a new $200 million share repurchase program. Under the prior $300 million buyback, the company had repurchased about $274 million of shares as of July 28.

The company expects fiscal 2027 revenue of $6.45 billion to $6.68 billion, representing 14% to 18% year-over-year growth. The guidance signals management expects sustained demand across its education and e-commerce segments. Investors will watch the pace of East Buy's offline expansion and margin trends in the coming quarters.

This article is for informational purposes only and does not constitute investment advice.