Key Takeaways:
- Net revenue rose 15.5% to US$5.66 billion for FY2026
- Non-GAAP operating margin expanded 170 basis points to 13%
- Company approved US$300 million dividend and US$200 million buyback for FY2027
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New Oriental annual profit jumps 27.8% to US$475M, guided 14%-18% growth
New Oriental reported FY2026 net income of US$475.2 million, up 27.8% year over year, as revenue grew 15.5% to US$5.66 billion.
"The consistent growth we have achieved validates our long-term approach," Michael Yu, Executive Chairman of New Oriental, said.
Fourth-quarter revenue rose 23% to US$1.53 billion, with operating income swinging to US$85.8 million from a loss of US$8.7 million a year earlier. Non-GAAP operating margin for the full year expanded 170 basis points to 13%. New educational business initiatives grew 24.8%, while domestic test preparation for adults and university students rose 29.1%.
The company guided FY2027 revenue of US$6.45 billion to US$6.68 billion, implying 14% to 18% growth. ADRs rose more than 3% in premarket trading.
East Buy and AI Integration Drive Diversification
East Buy, New Oriental's livestreaming e-commerce arm, launched 11 new Douyin vertical accounts during the fiscal year, expanding its channel matrix to 18. The unit will open offline experience stores via New Oriental's learning centers in FY2027 and accelerate private label development, CEO Chenggang Zhou said. New Oriental's new customer service platform, New Oriental Home, has served more than 950,000 families across 69 cities, designed to reduce customer acquisition costs and unlock cross-selling potential.
The company deepened AI integration across its education ecosystem, embedding AI into existing offerings and deploying the technology to boost operational efficiency. Its OMO (online-merge-offline) teaching system was further enhanced during the year.
Shareholder Returns and Balance Sheet
As part of its three-year shareholder return plan, New Oriental approved a US$300 million ordinary cash dividend for FY2027, payable in two installments in December 2026 and June 2027. The board also authorized a new US$200 million share repurchase program over the next 12 months. Under the prior program, the company repurchased about 51.5 million common shares for US$274 million as of July 28.
New Oriental held US$1.82 billion in cash and cash equivalents as of May 31, plus US$1.37 billion in term deposits and US$2.37 billion in short-term investments. Deferred revenue, representing cash collected upfront from customers, rose 14.8% to US$2.24 billion.
The guidance raise signals management expects sustained demand across both education and e-commerce segments. Investors will watch the company's first-quarter FY2027 results for updated margin trends across its diversified business lines.
This article is for informational purposes only and does not constitute investment advice.
