Financial Data and Key Metrics Changes - Total net revenue increased by 6.1% year over year, reaching $1,412.2 million [4][11] - Non-GAAP operating margin improved to 22%, a year-over-year increase of 100 basis points [4] - Operating income rose by 6% year over year to $310.8 million [11] - Net income attributable to New Oriental decreased by 1.9% year over year to $240.7 million [12] - Deferred revenue increased by 10% year over year to $1,906.7 million [13] Business Line Data and Key Metrics Changes - Overseas test prep business revenue increased by about 1% year over year [5] - Overseas study consulting business revenue increased by about 2% year over year [5] - Adults and university students business revenue increased by 14% year over year [5] - New educational business initiatives recorded a revenue increase of about 15% year over year [6] Market Data and Key Metrics Changes - The top 10 cities contributed over 60% of the non-academic tutoring business revenue [5] - The top 10 cities contributed over 50% of the intelligent learning system and device business revenue [6] - Integrated tourism-related business connected across 55 cities, with the top 10 cities contributing over 50% of revenue [6] Company Strategy and Development Direction - The company is focused on enhancing operational resilience and sustainable profitability [4] - Continued investments in new education business initiatives aim to facilitate students' all-around development [5] - The company is leveraging AI to streamline internal operations and improve teaching efficiency [8][9] - A strategic approach to capacity expansion and hiring is being implemented to ensure quality offerings [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving margins and operational efficiency while maintaining cost control [15] - Guidance for total net revenue in Q2 FY 2026 is projected to be between $1,132.1 million and $1,263.3 million, representing a year-over-year increase of 9% to 12% [16] - For the full fiscal year 2026, total net revenue is expected to be between $5,145.3 million and $5,390.3 million, indicating a year-over-year increase of 5% to 10% [16] Other Important Information - A shareholder return plan has been initiated, including a cash dividend of $0.12 per common share and a share repurchase program of up to $300 million [17][18] - The effective tax rate for Q1 was higher due to special circumstances, expected to normalize in future quarters [46] Q&A Session Summary Question: Competition in K-12 Business - Management noted that K-12 business revenue growth is expected to accelerate, with K-9 new business projected to grow around 20% year-over-year in Q2 [21][24] Question: Share-Based Compensation Increase - The increase in share-based compensation was attributed to grants issued in the previous fiscal year, with expectations for similar levels in upcoming quarters [26][27] Question: Overseas Business Performance - Overseas test prep for younger age groups grew over 25% year over year, while consulting business in Asia showed strong growth [29][32] Question: Shareholder Return Policy - The shareholder return policy is based on net profit and cash flow expectations, with a commitment to maintain a high payout ratio [35][37] Question: Operating Margin Outlook - Management expects margin expansion to continue, driven by cost control and operational efficiency [41][44] Question: Tax Rate Expectations - The effective tax rate in Q1 was higher due to special circumstances, with expectations for it to normalize in future quarters [46]

Core Insights - New Oriental Education & Technology Group Inc. has released its unaudited financial report for the initial quarter, highlighting significant developments in its operations and financial performance [1] Financial Performance - The company reported a revenue of approximately $X million for the quarter, reflecting a Y% increase compared to the same period last year [1] - Net income for the quarter was reported at $X million, showing a Z% growth year-over-year [1] Operational Highlights - New Oriental has expanded its online education offerings, which contributed to the revenue growth [1] - The company has seen an increase in student enrollment numbers, indicating a positive trend in demand for its educational services [1] Market Position - As a key player in China's private education sector, New Oriental continues to adapt to regulatory changes and market dynamics [1] - The company remains focused on enhancing its technological capabilities to improve educational delivery and student engagement [1]

Core Insights - New Oriental reported a net revenue of $1.523 billion for Q1 of fiscal year 2026, representing a year-on-year increase of 6.1% [1] - The net profit attributable to shareholders was $241 million, showing a slight decline of 1.9% compared to the previous year [1] Revenue Breakdown - Revenue from overseas exam preparation and consulting services grew by approximately 1% and 2% year-on-year, respectively [1] - Domestic exam preparation services targeting adults and university students saw a significant increase of about 14.4% year-on-year [1] - New education business revenue experienced a robust growth of 15.3% year-on-year [1]

Group 1 - HSBC Bank (China) Limited has entered into a cooperation agreement with New Oriental Group's New Oriental Future Overseas Consulting Co., Ltd. and New Oriental Future Education Consulting Co., Ltd. [1] - The collaboration focuses on providing financial and study abroad solutions for families considering overseas education, particularly for those looking to study in Hong Kong [1]

Financial Performance - Total net revenues for the first fiscal quarter of 2026 increased by 6.1% year over year to US$1,523.0 million[4] - Operating income rose by 6.0% year over year to US$310.8 million, with a non-GAAP operating income increase of 11.3% to US$335.5 million[11] - Net income attributable to New Oriental decreased by 1.9% year over year to US$240.7 million, with basic and diluted net income per ADS at US$1.52 and US$1.50, respectively[15] - Net revenues for the three months ended August 31, 2025, were $1,522,980, an increase of 6.1% compared to $1,435,416 in the same period of 2024[35] - Operating income for the same period was $310,827, representing a 6.3% increase from $293,150 year-over-year[35] - Net income attributable to New Oriental's shareholders was $240,723, slightly down from $245,430 in the previous year, reflecting a decrease of 1.1%[35] - Non-GAAP net income attributable to New Oriental was $258,255, compared to $262,411 in the prior year, indicating a decrease of 1.9%[36] - The diluted net income per ADS attributable to New Oriental was $1.52 for the three months ended August 31, 2025, compared to $1.49 in the same period of 2024, reflecting an increase of 2.0%[36] Revenue Guidance - New Oriental expects total net revenues for the second quarter of fiscal year 2026 to be in the range of US$1,132.1 million to US$1,163.3 million, representing a year-over-year increase of 9% to 12%[20] - The full-year revenue guidance for fiscal year 2026 is projected to be between US$5,145.3 million and US$5,390.3 million, indicating a year-over-year increase of 5% to 10%[21] Deferred Revenue - The company reported a 10.0% increase in deferred revenue, reaching US$1,906.7 million compared to US$1,733.1 million at the end of the first quarter of fiscal year 2025[19] Cash and Investments - Cash and cash equivalents as of August 31, 2025, totaled US$1,282.3 million, with additional term deposits of US$1,570.2 million and short-term investments of US$2,178.1 million[18] - Cash and cash equivalents decreased to $1,282,311 as of August 31, 2025, down from $1,612,379 as of May 31, 2025[34] - Total assets increased to $8,012,925 as of August 31, 2025, compared to $7,805,499 as of May 31, 2025, reflecting a growth of 2.7%[34] - Total liabilities decreased to $3,754,521 as of August 31, 2025, down from $3,851,767 as of May 31, 2025, a reduction of 2.5%[34] - Net cash provided by operating activities was $192,318 for the three months ended August 31, 2025, compared to $183,210 in the same period of 2024, an increase of 5.8%[39] - The company reported a net cash used in investing activities of $(451,712) for the three months ended August 31, 2025, compared to $(295,156) in the same period of 2024, indicating increased investment activity[39] Shareholder Returns - The board approved a three-year shareholder return plan, committing to return at least 50% of net income to shareholders, starting with fiscal year 2026[7] - A new share repurchase program allows for the repurchase of up to US$300 million of ADSs or common shares over the next 12 months[12] Operating Margin - The company maintained a non-GAAP operating margin of 22.0%, up 100 basis points from the previous year[6]

Core Insights - New Oriental reported a net revenue of $1.523 billion for the first quarter ending August 31, 2025, representing a year-on-year increase of 6.1% [1] - The operating profit for the same period was $311 million, also reflecting a year-on-year growth of 6.0% [1] - However, the net profit attributable to shareholders decreased by 1.9% to $241 million compared to the previous year [1]

Core Insights - New Oriental Education & Technology Group reported a 6.1% year-on-year increase in net revenue for Q1 of FY2026, reaching $1.523 billion [1] - Operating profit for the same period rose by 6.0% year-on-year to $311 million [1] - Shareholder net profit for Q1 of FY2026 decreased by 1.9% year-on-year to $241 million [1] Revenue Growth - The revenue from overseas exam preparation and consulting services grew by approximately 1.0% and 2.0% year-on-year, respectively [2] - Domestic exam preparation services for adults and university students saw a significant increase of about 14.4% year-on-year [2] - New educational business recorded a revenue growth of 15.3% year-on-year [2] Student Engagement - Non-subject tutoring services were launched in around 60 cities, attracting approximately 530,000 students [2] - The smart learning system and devices were implemented in about 60 cities, with active paying users reaching approximately 452,000 [2] Strategic Focus - The company aims to maintain its strategic direction and long-term development plans, focusing on continuous optimization of core educational services [2] - There is an emphasis on enhancing product capabilities and quality, systematic construction of educational resources, and improving operational efficiency [2] Technology Integration - The company is advancing its OMO (Online-Merge-Offline) teaching system and increasing investments in integrating artificial intelligence into its educational ecosystem [2] - AI-driven smart learning devices and solutions have been successfully launched, enhancing the learning experience and supporting students [2] Financial Performance - Despite challenges from a slowdown in overseas business, the company achieved a year-on-year increase in Non-GAAP operating profit margin, which reached 22.0%, up 100 basis points from the previous year [2] - The company plans to expand cost control and efficiency improvement measures across all businesses to establish a foundation for sustainable and profitable growth [2]

Core Points - New Oriental Education Technology Group announced a cash dividend of $0.06 per share for the fiscal year ending May 31, 2026 [1] - The ex-dividend date is set for November 17, 2025, with the record date on November 18, 2025, and the payment date on December 2, 2025 [1] - The dividend will be paid in US dollars without withholding tax [1] - The company's board of directors has adopted a share repurchase plan, although specific details have not been disclosed [1] - The board includes prominent members such as Yu Minhong, Zhou Chenggang, and independent directors Li Yanhong, Li Tingbin, and Zhuge Yue [1]

Core Insights - New Oriental's net revenue for the first quarter of fiscal year 2026 increased by 6.1% year-on-year to $1.523 billion [1] - Operating profit for the same period rose by 6.0% year-on-year to $311 million [1] - Net profit attributable to shareholders decreased by 1.9% year-on-year to $241 million [1] Revenue Growth - The revenue from overseas exam preparation and consulting services grew by approximately 1.0% and 2.0% year-on-year, respectively [2] - Domestic exam preparation services for adults and university students saw a significant increase of about 14.4% year-on-year [2] - New education business recorded a revenue growth of 15.3% year-on-year [2] Strategic Initiatives - The company is focusing on enhancing product capabilities and quality while systematically building educational resources [2] - The active paid user count for the smart learning system reached approximately 452,000 across about 60 cities [2] - The company is integrating artificial intelligence into its educational ecosystem and has launched AI-driven smart learning devices and solutions [2] Financial Performance - Non-GAAP operating profit margin improved to 22.0%, an increase of 100 basis points year-on-year [2] - The company aims to expand cost control and efficiency improvement measures across all business segments for sustainable and profitable growth [2]

Core Insights - New Oriental Education & Technology Group reported a 6.1% year-on-year increase in net revenue for Q1 of FY2026, reaching $1,523.0 million [1] - Operating profit for the same period rose by 6.0% to $310.8 million, while net profit attributable to shareholders decreased by 1.9% to $240.7 million [1] Revenue Breakdown - Revenue from overseas exam preparation and consulting services grew approximately 1.0% and 2.0% year-on-year, respectively [1] - Domestic exam preparation services for adults and university students saw a significant increase of about 14.4% year-on-year [1] - The new education business recorded a revenue growth of 15.3% year-on-year [1] - Non-subject tutoring services have been launched in around 60 cities, attracting approximately 530,000 students [1] User Engagement and Strategic Direction - The smart learning system and devices have been implemented in about 60 cities, with active paying users reaching approximately 452,000 [2] - The company aims to maintain its strategic direction and long-term development plans, focusing on continuous optimization of core educational services [2] - There is a commitment to enhancing product capabilities and quality, systematically building educational resources, and improving operational efficiency [2] - The company is dedicated to providing excellent customer service, enhancing brand influence, and creating sustainable long-term value for shareholders [2] - The belief in achieving continuous growth through ongoing strategic initiatives and a relentless pursuit of excellence is emphasized [2]