New Oriental (EDU) Earnings Call Transcript

Image source: The Motley Fool.

Wednesday, Jan. 28, 2026 astatine 8:00 a.m. ET

• Executive President and Chief Financial Officer — Stephen Yang

• Executive Director and Chief Executive Officer — Alice Chow

Need a punctuation from a Motley Fool analyst? Email [email protected]

Stephen Yang, Executive President and Chief Financial Officer, and I volition stock New Oriental Education & Technology Group Inc.'s latest net results and concern updates successful item with you. After that, Stephen and I volition beryllium disposable to reply your questions. Before we continue, delight enactment that the treatment contiguous volition incorporate forward-looking statements made nether the harmless harbor provisions of The U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements impact inherent risks and uncertainties. As such, our results whitethorn beryllium materially antithetic from the views expressed today. A fig of imaginable risks and uncertainties are outlined successful our nationalist filings with the SEC.

New Oriental Education & Technology Group Inc. does not undertake immoderate work to update immoderate forward-looking statements but arsenic required nether applicable law. As a reminder, this league is being recorded. In addition, a webcast of this league telephone volition beryllium disposable connected New Oriental Education & Technology Group Inc.'s Investor Relations website astatine investor.neworiental.org. I volition present archetypal crook the telephone implicit to Mr. Yang. Stephen, delight spell ahead.

Stephen Yang: Thank you, Alice. Hello, everyone. And convey you for joining america connected the call. I'm pleased to study a beardown acceptable of results for 2026. Our continued absorption connected operational ratio and disciplined assets absorption has been a cardinal operator of our coagulated show and continues to enactment our way to sustainable profitability. We are delighted to spot beardown nett maturation accompanied by a important betterment successful non-GAAP operating margin, up much than 4 percent points. Again, exceeded our expectations. This quarter, full nett gross grew 14.7% twelvemonth implicit year, to $1.19 billion. Non-GAAP operating income much than tripled, rising 206.9% to $89.1 million.

Non-GAAP nett income attributable to New Oriental Education & Technology Group Inc. accrued 6068.6% to $72.9 million. Our halfway concern remains steady, and I'm pleased to stock that our caller initiatives are gaining traction and making meaningful contributions to the group's wide performance. For the 2nd fiscal quarter, our K-9 caller acquisition concern and precocious schoolhouse tutoring concern reported accelerated year-over-year gross growth, outpacing the erstwhile quarter. Overseas-related concern has shown resilience, delivering humble gross maturation contempt the ongoing macroeconomic headwind, exceeding our earlier blimpish expectations. Overseas trial prep concern recorded a gross summation of 4% twelvemonth implicit year. Overseas survey consulting concern recorded a flimsy alteration of astir 3% twelvemonth implicit year.