New Oriental Education & Technology (EDU)
NYSE:EDU
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New Oriental Education Tech
(NYSE:EDU)
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Rating:78Outperform
Price Target:
$60.00
▲(6.82% Upside)
Action:UpgradedDate:01/28/26
The score is driven primarily by strong financial performance and a constructive earnings update (raised guidance, significant profitability/margin expansion, and strong cash generation). Offsetting factors include only neutral-to-mixed technical momentum and a valuation that is reasonable but not clearly cheap, with some operating-risk callouts (overseas softness and higher G&A/share-based compensation).
Positive Factors
Strong cash generation & liquidity
Robust operating cash flow and large liquid reserves, alongside 24.53% FCF growth, provide durable financial flexibility. This supports continued investment in AI/OMO, orderly buybacks/dividends, and weathering cyclical softness without urgent financing needs over the next several months.
Negative Factors
Overseas business softness
Weakness in overseas segments constrains the company’s diversification and reduces growth optionality. Prolonged soft demand or macro headwinds abroad would limit consolidated revenue upside and force greater dependence on domestic segments, making overall growth more vulnerable over months.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation & liquidity
Robust operating cash flow and large liquid reserves, alongside 24.53% FCF growth, provide durable financial flexibility. This supports continued investment in AI/OMO, orderly buybacks/dividends, and weathering cyclical softness without urgent financing needs over the next several months.
Read all positive factors
New Oriental Education Tech (EDU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.36B
Dividend Yield1.03%
Average Volume (3M)737.46K
Price to Earnings (P/E)46.0
Beta (1Y)0.65
Revenue Growth7.22%
EPS Growth-2.84%
CountryUS
Employees67,935
SectorConsumer Defensive
Sector Strength42
IndustryEducation & Training Services
Share Statistics
EPS (TTM)0.45
Shares Outstanding163,528,840
10 Day Avg. Volume687,711
30 Day Avg. Volume737,462
Financial Highlights & Ratios
PEG Ratio0.98
Price to Book (P/B)2.09
Price to Sales (P/S)1.57
P/FCF Ratio12.04
Enterprise Value/Market Cap0.84
Enterprise Value/Revenue1.58
Enterprise Value/Gross Profit2.86
Enterprise Value/Ebitda12.07
Forecast
1Y Price Target
$72.66Price Target Upside29.36% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)3.49
Revenue Forecast (FY)$5.47B
New Oriental Education Tech Business Overview & Revenue Model
Company Description
New Oriental Education & Technology Group Inc. provides private educational services under the New Oriental brand in the People's Republic of China. It operates through K-12 AST, Test Preparation and Other Courses; Online Education; and Others seg...
How the Company Makes Money
New Oriental generates revenue primarily through tuition fees for its educational programs and services. Key revenue streams include fees from language training courses, test preparation classes, and K-12 tutoring services. The company also earns ...
New Oriental Education Tech Earnings Call Summary
Earnings Call Date:Jan 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Apr 22, 2026
Earnings Call Sentiment Positive
The call presented a clear improvement in revenue, strong operating and non-GAAP profit growth, margin expansion, solid cash generation, and an upward revision to full-year guidance — driven by K-12 acceleration, new education initiatives, AI/OMO investments, and Eastbay recovery. Offsetting these positives are modest weakness and headwinds in parts of the overseas business, rising G&A and share-based compensation, and concentration of growth in top cities. Overall, the positive operational momentum and improved profitability and guidance outweighed the challenges discussed.Positive Updates
Top-line Growth
Total net revenue grew 14.7% year over year to $1.19 billion for Q2 FY2026, reflecting broad-based recovery and acceleration in core segments.
Negative Updates
Overseas Business Softness
Overseas-related business faced macroeconomic headwinds: overseas test prep grew modestly by 4% YoY while overseas study consulting declined about 3% YoY; management expects flattish to low-single-digit growth in the near term.
Read all updates
Q2-2026 Updates
Positive
Negative
Top-line Growth
Total net revenue grew 14.7% year over year to $1.19 billion for Q2 FY2026, reflecting broad-based recovery and acceleration in core segments.
Read all positive updates
Company Guidance
Management raised its FY2026 outlook, guiding full‑year total net revenue to $5.2923–$5.4883 billion (up 8–12% YoY) and also citing a group revenue range of $1.3132–$1.3487 billion (up 11–14% YoY) for the 2026 fiscal year period referenced; they expect K‑12 to grow roughly 20%+ (Q3 view) while overseas is likely to be flattish to low single digits after Q2 results of overseas test‑prep +4% YoY and overseas study‑consulting ≈‑3% YoY, new education initiatives grew 22% YoY this quarter, and management reiterated focus on cost discipline, measured capacity expansion (deeper penetration in high‑performing cities not aggressive openings), continued investment in AI and OMO (Q2 OMO spend $28.4M), commitment to sustainable profitability, and shareholder returns including an ordinary dividend of $0.12 per common share ($1.20 per ADS) with the first installment paid and a $300M buyback authorization (≈1.6M ADS repurchased for ~$86.3M to date).New Oriental Education Tech Financial Statement Overview
Summary
Income Statement
85
Very Positive
Balance Sheet
78
Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | May 2025 | May 2024 | May 2023 | May 2022 | May 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.99B | 4.90B | 4.31B | 3.00B | 3.11B | 4.28B |
| Gross Profit | 2.75B | 2.72B | 2.26B | 1.59B | 1.35B | 2.24B |
| EBITDA | 651.65M | 595.37M | 457.25M | 312.75M | -834.22M | 551.90M |
| Net Income | 367.45M | 372.44M | 309.59M | 177.34M | -1.19B | 334.41M |
Balance Sheet | ||||||
| Total Assets | 8.01B | 7.81B | 7.53B | 6.39B | 6.03B | 10.15B |
| Cash, Cash Equivalents and Short-Term Investments | 4.67B | 4.58B | 4.78B | 4.00B | 4.19B | 6.26B |
| Total Debt | 784.05M | 803.78M | 662.33M | 458.60M | 680.41M | 2.16B |
| Total Liabilities | 3.75B | 3.85B | 3.48B | 2.58B | 2.24B | 5.13B |
| Stockholders Equity | 3.95B | 3.66B | 3.78B | 3.60B | 3.71B | 4.91B |
Cash Flow | ||||||
| Free Cash Flow | 737.23M | 637.38M | 839.25M | 827.96M | -1.43B | 693.74M |
| Operating Cash Flow | 905.70M | 896.59M | 1.12B | 971.01M | -1.28B | 1.13B |
| Investing Cash Flow | -249.98M | -93.43M | -1.15B | -37.41M | 1.17B | -2.18B |
| Financing Cash Flow | -460.91M | -584.97M | -160.44M | -246.87M | -230.86M | 1.65B |
New Oriental Education Tech Technical Analysis
Positive
56.17
Price Trends
57.13
Negative
55.85
Positive
53.43
Positive
Market Momentum
0.04
Negative
51.57
Neutral
63.28
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EDU, the sentiment is Positive. The current price of 56.17 is above the 20-day moving average (MA) of 55.30, below the 50-day MA of 57.13, and above the 200-day MA of 53.43, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 51.57 is Neutral, neither overbought nor oversold. The STOCH value of 63.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EDU.
New Oriental Education Tech Risk Analysis
New Oriental Education Tech disclosed 82 risk factors in its most recent earnings report. New Oriental Education Tech reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
New Oriental Education Tech Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $9.36B | 45.98 | 10.04% | 1.03% | 7.22% | -2.84% | |
76 Outperform | $3.79B | 7.03 | 21.36% | ― | 17.25% | 30.15% | |
70 Outperform | $6.77B | 3.93 | 7.83% | ― | 44.37% | 146.96% | |
64 Neutral | $1.02B | -23.64 | -8.12% | ― | 8.10% | 43.35% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
55 Neutral | $1.14B | 77.54 | -5.25% | ― | -1.51% | 155.73% | |
41 Neutral | $477.40M | -18.93 | -20.60% | ― | 48.81% | 61.64% |
* Consumer Defensive Sector Average
EDU
New Oriental Education Tech
56.17
13.71
32.30%
LRN
Stride
88.95
-44.75
-33.47%
TAL
TAL Education Group
11.18
1.53
15.85%
GOTU
Gaotu Techedu
1.96
-0.66
-25.19%
DAO
Youdao
9.57
2.73
39.91%
COUR
Coursera
6.04
-0.93
-13.34%
New Oriental Education Tech Corporate Events
New Oriental Posts Strong Q2 FY2026 Growth as Diversified Education and AI Strategy Gain Traction
Jan 28, 2026
On January 28, 2026, New Oriental reported unaudited results for the second quarter of fiscal 2026, covering the period ended November 30, 2025, showing a sharp acceleration in growth and profitability. Quarterly net revenues rose 14.7% year on ye...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.