New Oriental Education & Technology Group reported a sharp rebound in profitability and robust top-line growth for the fourth quarter of fiscal 2026, driven by its core education services, an expanding e-commerce arm and a slate of newer initiatives.
Quarterly results: revenue up, operating profit restored
Total net revenue for the quarter reached US$1.53 billion, a 23 per cent increase from the same period a year earlier. The company moved back into operating profit: operating income was US$85.8 million after an operating loss of US$8.7 million in the prior-year quarter. On a non-GAAP basis, income from operations rose to US$110 million, up 34.7 per cent.
Net income attributable to New Oriental climbed sharply to US$62.2 million, a year-over-year increase of 775.8 per cent. By contrast, non-GAAP net income was down about 10.5 per cent, to US$87.8 million. Basic and diluted net income per American depositary share (ADS) were reported at US$0.40 and US$0.39, respectively; on a non-GAAP basis basic and diluted EPS per ADS were US$0.56 and US$0.55.
Where the growth came from
Company executives highlighted gains across several areas. Overseas test-preparation services increased modestly, while consulting for students planning to study abroad rose by roughly one percentage point. Programs aimed at adults and university students saw meaningful demand, with revenue up 29 per cent.
“The company’s core operations and newer businesses both gained traction during the quarter.”
New educational initiatives collectively delivered a 25 per cent year-over-year revenue increase. The company’s non-academic offerings targeting children now operate in about 60 cities, with the top 10 cities accounting for about 60 per cent of that revenue stream. Similarly, its intelligent learning systems and devices are present in roughly 60 cities, and over half of that business’s revenue is concentrated in the top 10 markets.
New services and investments
New Oriental is diversifying beyond tutoring. The firm described a tourism-related portfolio that includes study tours, research camps, cultural trips and senior health-and-wellness travel. Student-focused programmes run in about 55 cities, and premium adult-tourism products cover around 30 Chinese provinces plus selected international destinations. The firm has also established partnerships with more than 45 wellness facilities for a lower-capital senior-tourism offering.
During the quarter the company invested US$31.2 million to upgrade and maintain its online-merge-offline teaching platform, a sign that it continues to prioritise technology infrastructure for its education services.
- Revenue (Q4 FY2026): US$1.53 billion (+23% YoY)
- Operating income: US$85.8 million (from a prior loss)
- Non-GAAP operating income: US$110 million (+34.7% YoY)
| Metric | Amount | Year-over-year change |
|---|---|---|
| Total net revenue | US$1.53 billion | +23% |
| Operating income | US$85.8 million | From US$-8.7M |
| Non-GAAP operating income | US$110 million | +34.7% |
| Net income attributable | US$62.2 million | +775.8% |
| Non-GAAP net income | US$87.8 million | -10.5% |
Context and potential consequences
The results show a company that is less dependent on one product line and is aggressively turning attention to consumer services, devices and platform upgrades. That diversification appears to be paying off in aggregate revenue and in restoring operating profitability, even as some legacy segments show only modest growth.
For investors and observers, the split between GAAP and non-GAAP results is noteworthy: headline net income jumped sharply, yet adjusted net income declined, a divergence that warrants attention when assessing sustainable earnings power. The company also provided guidance for the coming year, forecasting fiscal 2027 revenue growth of 14 to 18 per cent, signalling management expects continued expansion though at a slower clip than the most recent quarter.
From a technology perspective, ongoing investment in the online-merge-offline teaching platform and the rollout of intelligent learning devices suggest New Oriental intends to compete on product breadth and digital delivery as much as on traditional classroom scale. The global footprint of some offerings and the push into senior wellness tourism illustrate how education companies are repackaging expertise into adjacent consumer services.
How these strategies translate into longer-term profitability and whether they can offset concentrated-city revenue risk remain key questions. The company's top markets continue to contribute a large share of revenue, and that concentration exposes it to local demand shifts and regulatory changes. For now, New Oriental's quarter shows growth and an operational recovery — but the full test will be whether diversified initiatives can sustain revenue and deliver consistent, adjusted profits over time.
