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TAL Education Group Reports Strong Financial Growth for Q3 of Fiscal Year 2026

On January 29, 2026, TAL Education Group, a leading provider of smart learning solutions in China, announced its unaudited financial results for the third quarter of fiscal year 2026, which ended on November 30, 2025. The company experienced robust growth across key performance metrics, signaling its successful strategies in delivering high-quality educational services.

Financial Highlights for Q3 FY2026

• - Net Revenues: TAL reported net revenues of $770.2 million, marking a 27.0% increase from $606.4 million in the same quarter of the previous year. This growth reflects TAL’s strong market position and effective business strategies.

• - Income from Operations: The company achieved an operational income of $93.1 million, a substantial increase from a loss of $17.4 million during Q3 of FY2025. This turnaround exemplifies TAL's resilience and operational efficiency.

• - Net Income: The net income attributable to TAL hit $130.6 million, significantly higher than $23.1 million reported in the year-ago quarter. The strong performance was supported by rigorous cost management and increased operational efficacy.

• - Non-GAAP Measures: When adjusted for share-based compensation expenses, the non-GAAP net income attributable to TAL reached $141.4 million from $38.6 million, highlighting the ongoing financial improvement.

• - Earnings Per Share: Basic and diluted net income per American Depositary Share (ADS) was reported at $0.24 and $0.23, respectively, compared to $0.04 in Q3 FY2025. The non-GAAP earnings per ADS stood at $0.25, compared to $0.06 previously, demonstrating substantial growth.

TAL’s strong performance can be attributed to its strategy of integrating advanced technology into learning and consistently enhancing its educational offerings. Alex Peng, TAL’s President and CFO, emphasized the company’s commitment to providing quality educational solutions while driving strategic initiatives. "We remain focused on integrating technology into learning experiences and enhancing our content, products, and services to support students’ holistic development,” he stated.

Comprehensive Review of Financial Performance

TAL's operating expenses for the third quarter totaled $677.0 million, with a marginal increase of 8.5% compared to the previous period. The cost of revenues was reported at $338.4 million, reflecting an 18.0% increase due to enhanced service offerings and expanded operational scale. However, the decrease in selling and marketing expenses by 2.8%, which amounted to $220.1 million, indicates efficient marketing strategies that contribute to the bottom line.

The gross profit surged to $431.8 million, a 35.0% increase year-over-year, with a gross margin improvement to 56.1% from 52.7%. This uptick in gross profit signifies TAL’s success in managing costs while boosting sales, thereby improving overall profitability.

Long-term Outlook and Strategic Plans

TAL Education Group continues to focus on enhancing its technological integration within the educational ecosystem and improving pedagogical quality. With plans to dynamically allocate resources to build competitive advantages, TAL aims to further increase its value proposition for students and society. The firm also announced a new share repurchase program, indicating confidence in its future performance.

In summary, TAL Education Group's financial results reveal a compelling narrative of growth and resilience, underscoring its pivotal role in the evolving educational landscape of China. The company’s commitment to advancement in learning solutions aligns with its mission of promoting educational access and excellence. Investors and stakeholders can look forward to a promising future as TAL continues to shape education through innovation and strategic growth.