EDU · New Oriental Education & Technology Group Inc.

New Oriental’s Q3 FY2026 results reflect strong top-line and bottom-line expansion, with revenue growth accelerating to 19.8% YoY—outpacing the 13.0% growth for the first nine months—driven predominantly by its new educational business initiatives (+23.3% YoY), followed by domestic test prep for adults/university students (+14.5%) and overseas test prep (+7.4%). Operating income surged 44.8% YoY, and Non-GAAP operating margin improved 230 bps to 14.3%, underscoring successful cost discipline and higher utilization across teaching infrastructure. Management attributes this to AI integration into the OMO teaching system, enhanced customer service infrastructure serving 330,000+ families, and structural optimizations that reduced fixed costs. The Company also raised full-year FY2026 revenue guidance to $5.56–$5.59 billion (13–14% YoY), signaling confidence in sustained momentum across both core education and East Buy’s diversified live-streaming verticals (e.g., Home, Fruit & Vegetables, Nutrition & Health). Capital return activity remains active: $184.3 million of the $300 million buyback has been deployed, and the second dividend installment ($0.06/share) is scheduled for early June. Notably, cash and short-term investments totaled $5.23 billion as of February 28, 2026, while deferred revenue grew 7.8% YoY to $1.89 billion—indicating healthy forward visibility and enrollment traction in non-academic courses (458,000 student enrollments) and intelligent learning devices (367,000 paid users).