Q1 2026 New Oriental Education & Technology Group Inc Earnings Call Transcript
Key Points
- New Oriental Education & Technology Group Inc (EDU) reported a 6.1% year-over-year increase in total net revenue for the first fiscal quarter of 2026.
- The company's non-GAAP operating margin improved by 100 basis points year-over-year, reaching 22%.
- New educational business initiatives, including non-academic tutoring and intelligent learning systems, recorded a 15% year-over-year revenue increase.
- The K-12 business is expected to see a notable acceleration in revenue growth, with projections of over 20% year-over-year growth in the K-9 segment.
- The company announced a shareholder return plan, including a $190 million dividend and a $300 million share repurchase program, reflecting a high payout ratio.
- Net income attributable to New Oriental decreased by 1.9% year-over-year for the quarter.
- The overseas test prep and consulting businesses faced challenges, with guidance indicating a potential low single-digit decline in revenue for the next quarter.
- Share-based compensation expenses increased significantly by 239.8% year-over-year, impacting overall expenses.
- The effective tax rate increased to 27% due to withholding tax on dividends, which is higher than the typical 25%.
- Despite positive developments, the stock price experienced a decline of 6-7% pre-market, indicating potential market concerns.
Good evening and thank you for standing by for New Oriental's FY 2026 first-quarter results earnings conference call. (Operator Instructions) Today's conference is being recorded. If you have any objections, you may disconnect at this time.
And I'd like to turn the meeting over to your host for today's conference, Ms. Sisi Zhao.
Thank you. Hello, everyone, and welcome to the first fiscal 2026 earnings conference call. Our financial results for the period were released earlier today and available on the company's website, as well as on Newswire services.
Today, Stephen Yang, Executive President and Chief Financial Officer and I will share New Oriental's latest earnings results and business updates in detail with you. After that, Stephen and I will be available to answer your questions.
Before we continue, please note that the discussion today will contain forward-looking statements made under the Safe Harbor Provisions of the US Private
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
