New Oriental Reports Impressive Financial Growth in Third Quarter of Fiscal Year 2026

Overview of New Oriental’s Q3 Financial Performance

On April 22, 2026, New Oriental Education & Technology Group Inc. (listed as NYSE: EDU and 9901.SEHK) unveiled its financial performance for the third fiscal quarter, closing on February 28, 2026. The results showcased an exceptional growth trajectory, reflecting the company's strategic advancements in the educational sector.

Financial Highlights

New Oriental reported a total net revenue of $1,417.3 million for the quarter, marking a substantial 19.8% increase from the previous fiscal year. This surge in revenue is largely attributed to enhanced performance across its educational services and new business initiatives. Furthermore, operating income rose by 44.8% year-over-year to reach $180.3 million, showcasing the company's robust operational efficiency.

The net income attributable to New Oriental also saw impressive growth, increasing by 45.3% to $126.8 million for the same period. These financial metrics underscore New Oriental’s continued focus on delivering quality educational services while enhancing profitability.

Detailed Financial Results

Key Figures for Q3 FY2026

Metric	3Q FY2026	3Q FY2025	Change
---------	---	---	---
Net Revenues	$1,417.3M	$1,183.1M	19.8%
Operating Income	$180.3M	$124.5M	44.8%
Net Income Attributable	$126.8M	$87.3M	45.3%
Net Income per ADS - Basic	$0.80	$0.54	48.7%
Non-GAAP Operating Income	$202.9M	$142.1M	42.8%

The increase in revenue is attributed to various factors, including a 7.4% rise in overseas test preparation and a 14.5% increase in domestic test preparation services targeted at adults and university students. Additionally, new educational initiatives grew significantly, reflecting the adaptability and innovation of the company.

Operational Highlights and Growth Strategies

Michael Yu, Executive Chairman of New Oriental, noted the ongoing acceleration in revenue growth. He stated, "We are pleased to share of continued acceleration in our revenue growth year over year in the third fiscal quarter of 2026." The company has successfully implemented non-academic tutoring courses, attracting around 458,000 student enrollments this quarter across 60 cities.

New Oriental has also intensified its integration of technology within its educational offerings. Innovations such as the intelligent learning system have attracted 367,000 active paid users. Yu emphasized the company's commitment to enhancing teaching standards and product quality while optimizing operational efficiency.

Chenggang Zhou, CEO, reiterated the disciplined capacity expansion strategy and the deepened integration of AI within their educational framework. The introduction of multiple live-streaming channels on platforms like Douyin has broadened their reach to Chinese families, indicating a multi-faceted growth strategy.

Shareholder Returns and Future Outlook

In its commitment to shareholder returns, New Oriental announced a second installment of a dividend plan, along with share repurchase initiatives amounting to $300 million. The second dividend installment is set at $0.06 per common share, expected to be paid in early June 2026.

Looking ahead, New Oriental anticipates a robust total net revenue guidance for the fourth quarter of fiscal year 2026, projecting figures between $1,429.6 million and $1,466.9 million, which reflects a year-over-year growth of 15% to 18%. This outlook signals continued strength in operational performance and market demand.

Conclusion

New Oriental's dynamic performance in the third fiscal quarter of 2026 underscores its strategic focus on innovation, quality, and operational excellence in the education sector. With continued efforts to enhance service offerings and technology integration, the company is well-positioned to maintain its growth trajectory and deliver substantial returns to its shareholders.