Core Viewpoint - The report from Everbright Securities indicates a downward revision of New Oriental-S (09901) net profit forecasts for FY26-28 due to intensified industry competition and increased business base, with projected profits of $442 million, $514 million, and $582 million respectively, each down by 8% [1] Group 1: Financial Performance - In FY26Q1, New Oriental achieved net revenue of $1.523 billion, a year-on-year increase of 6.1%, exceeding previous guidance [1] - The company reported a net profit attributable to shareholders of $240,700, a decrease of 1.9% year-on-year, while Non-GAAP net profit was $258 million, down 1.6% [1] - The company expects FY26Q2 overall net revenue to be between $1.132 billion and $1.163 billion, representing a year-on-year growth of 9%-12% [2] Group 2: Business Segments - In the overseas business segment, exam preparation revenue grew by 1.0% and consulting revenue by 2.0%, with slower growth rates observed [1] - Domestic exam preparation for adults and university students saw a robust revenue increase of 14.4% year-on-year [1] - New educational business revenue grew by 15.3% year-on-year, although growth was impacted by increased competition from low-cost/free classes during the summer [1] Group 3: Operational Efficiency - Non-GAAP operating profit for FY26Q1 was $336 million, reflecting an 11.3% year-on-year increase, with an operating profit margin of 22.0%, up 1.0 percentage points [3] - The improvement in profit margin is attributed to ongoing efforts in cost optimization and operational efficiency [3] - The company is implementing a cautious capacity expansion strategy and enhancing the use of AI technology in its educational ecosystem and internal operations [3] Group 4: Shareholder Returns - The company announced a three-year shareholder return plan, committing to return at least 50% of the previous fiscal year's net profit to shareholders, including a cash dividend of $190 million and a $300 million share buyback plan [2]

公司预计FY26Q2整体净营收将在11.32亿美元至11.63亿美元之间，同比增长9%-12%，增速较Q1有所回 升。公司维持FY26全年净营收指引为51.45亿美元至53.90亿美元，同比增长5%-10%。此外，公司宣布 启动一项为期三年的股东回报计划，拟将不低于上一财年归母净利润的50%用于回馈股东，并已批准派 发1.9亿美元现金股息及启动3亿美元的股份回购计划，彰显管理层对未来发展的信心。 智通财经APP获悉，光大证券发布研报称，考虑到行业竞争加剧以及业务基数提升，下调新东方- S(09901)2026-2028财年归母净利润预测分别至4.42/5.14/5.82亿美元(分别下调8%/8%/8%)，对应2026- 2028财年EPS分别为0.28/0.33/0.37美元，当前股价对应PE分别为22x/19x/16x，公司为教育培训行业龙 头，行业需求仍较旺盛，该行维持"增持"评级。 光大证券主要观点如下： 事件：FY26Q1新东方实现净营收15.23亿美元，同比+6.1%;实现归母净利润24.07万美元，同比-1.9%;实 现Non–GAAP归母净利润2.58亿美元，同比-1.6%。FY26Q1核心业务 ...

Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for future performance [4][6]. Core Insights - The company reported a net revenue of $1.523 billion for FY26Q1, representing a year-on-year increase of 6.1%, exceeding previous guidance [2][3]. - The company expects FY26Q2 net revenue to be between $1.132 billion and $1.163 billion, reflecting a year-on-year growth of 9%-12% [3]. - A three-year shareholder return plan has been initiated, with at least 50% of the previous fiscal year's net profit allocated for shareholder returns, including a cash dividend of $190 million and a $300 million share buyback plan [3]. Revenue and Profitability - The core business showed steady growth, with the overseas examination preparation business growing by 1.0% and domestic examination preparation for adults and college students increasing by 14.4% [2]. - Non-GAAP operating profit for FY26Q1 was $336 million, up 11.3% year-on-year, with an operating profit margin of 22.0%, an increase of 1.0 percentage points [3]. Financial Forecasts - The company has adjusted its net profit forecasts for FY26 to FY28 downwards by 8%, now projecting $442 million, $514 million, and $582 million respectively [4]. - Corresponding EPS for FY26 to FY28 is expected to be $0.28, $0.33, and $0.37, with current P/E ratios of 22x, 19x, and 16x respectively [4].

Core Viewpoint - Guosen Securities maintains an "outperform" rating for New Oriental-S (09901) due to its clear quality enhancement strategy, positive performance outlook, and attractive shareholder returns [1] Group 1: Financial Performance - In Q1 FY2026, the company achieved revenue of $1.523 billion, a year-on-year increase of 6.1%, exceeding the previous forecast of 5% [1] - Non-GAAP operating profit reached $336 million, up 11.3%, with a Non-GAAP operating profit margin increasing by 1 percentage point to 22% [1] - Non-GAAP net profit attributable to shareholders was $258 million, down 1.6%, primarily due to the impact of dividend withholding tax [1] - Deferred revenue at the end of the period was $1.907 billion, reflecting a 10% increase [1] Group 2: Business Segment Performance - K9 education new business revenue grew by 15%, with non-academic training participants at 530,000, up 10%, and paid active users for learning machines at 452,000, up 40% [2] - High school training revenue increased by 7%, affected by scheduling and regional discounts, with expectations for improved K12 business revenue in FY26Q2 [2] - Study abroad training and consulting revenue grew by 1% and 2%, respectively, benefiting from a favorable external environment and the company's focus on non-U.S. countries and younger demographics [2] - University student business revenue increased by 14%, outperforming the previous expectation of 10% growth [2] Group 3: Future Outlook and Shareholder Returns - For FY2026Q2, the company expects net revenue growth of 9%-12%, maintaining a full-year guidance of 5%-10% growth [3] - A three-year shareholder return plan has been announced, with plans to distribute at least 50% of the previous fiscal year's net profit to shareholders [3] - The board has approved a total cash dividend of approximately $190 million and a share buyback plan of up to $300 million within the next 12 months, totaling 132% of the FY2025 net profit [3] - The current shareholder return plan corresponds to an estimated return rate of about 5.1% based on the latest market capitalization [3]

Core Viewpoint - Guosen Securities maintains an "outperform" rating for New Oriental-S (09901) due to its clear quality enhancement strategy, positive performance outlook, and attractive shareholder returns [1] Financial Performance - In Q1 FY2026, the company achieved revenue of $1.523 billion, a year-on-year increase of 6.1%, exceeding the previous forecast of 5% [2] - Non-GAAP operating profit reached $336 million, up 11.3%, with a Non-GAAP operating margin improvement of 1 percentage point to 22% [2] - Non-GAAP net profit attributable to shareholders was $258 million, down 1.6%, primarily due to the impact of dividend withholding tax [2] Business Segment Performance - K9 education new business revenue grew by 15%, with non-subject training participants reaching 530,000, an increase of 10% [2] - The number of active paid users for learning machines increased by 40% to 452,000, indicating strong brand appeal [2] - High school training revenue increased by 7%, affected by scheduling and regional discounts [3] - Study abroad and consultation revenue grew by 1% and 2% respectively, benefiting from improved external conditions [3] - University business revenue rose by 14%, outperforming the previous expectation of 10% growth [3] Future Outlook - For Q2 FY2026, the company expects revenue growth of 9%-12% and maintains a full-year revenue growth guidance of 5%-10% [4] - A three-year shareholder return plan has been announced, with plans to distribute at least 50% of the previous fiscal year's net profit to shareholders [4] - The board has approved a cash dividend of approximately $190 million and a share buyback plan of up to $300 million within the next 12 months, totaling 132% of the previous fiscal year's net profit [4]

Investment Rating - The investment rating for the company is "Outperform the Market" [6][4][22] Core Views - The company has shown a steady improvement in Non-GAAP operating profit margin, achieving a revenue of $1.523 billion in Q1 FY2026, a year-on-year increase of 6.1%, exceeding previous expectations [1][9] - The K12 business outlook remains positive, with expectations for revenue acceleration in FY2026Q2, projected to grow by 9%-12% [3][20] - A three-year shareholder return plan has been announced, with plans to distribute at least 50% of the previous fiscal year's net profit to shareholders, including a cash dividend of approximately $190 million and a share buyback plan of up to $300 million [3][20] Business Performance Summary - K9 education new business revenue increased by 15%, with non-subject training participants reaching 530,000, a 10% increase [2][11] - High school training revenue grew by 7%, impacted by scheduling and regional discounts [2][11] - The study abroad and university student business revenues increased by 1% and 14% respectively, outperforming previous expectations [2][11] - The company plans to enhance K12 business product capabilities and quality, anticipating improved retention rates and revenue growth [2][11] Financial Forecasts and Metrics - Revenue projections for FY2026 are set at $5.453 billion, with a year-on-year growth of 11.3% [5][24] - The adjusted net profit forecasts for FY2026-2028 are $430 million, $483 million, and $532 million respectively, with corresponding PE ratios of 22.6, 20.2, and 18.3 [4][22] - The company maintains a gross margin of 58.1% and continues to improve operational efficiency, with management and sales expense ratios decreasing [17][24]

Core Viewpoint - The company has announced its third-quarter financial report for 2025, ensuring the accuracy and completeness of the information provided, and has also established a joint venture company named Carbon Nest New Material Technology (Tengzhou) Co., Ltd. [7][10][8] Financial Data Summary - The third-quarter financial report for 2025 has not been audited [3] - The company reported a revenue of 17.407 million yuan from its computing power business, accounting for 6.24% of the main business revenue, with costs amounting to 9.8892 million yuan [10] Shareholder Information - The company guarantees the accuracy of the quarterly report and the financial information provided by its management team [2][6] Joint Venture Establishment - The joint venture, Carbon Nest New Material Technology (Tengzhou) Co., Ltd., has been registered with a capital of 100 million yuan and focuses on high-performance fibers and composite materials [8] Board Meeting and Resolutions - The sixth board meeting was held on October 28, 2025, where the third-quarter report was approved unanimously by all attending directors [14]

Financial Data and Key Metrics Changes - Total net revenue increased by 6.1% year over year, reaching $1,412.6 million [4] - 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] - Non-GAAP net income decreased by 1.6% year over year to $258.3 million [12] - Deferred revenue increased by 10% year over year to $1,906.7 million [14] 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 [7] Market Data and Key Metrics Changes - Non-academic tutoring business expanded to around 60 cities, with top 10 cities contributing over 60% of revenue [6] - Intelligent learning system and device business tested in around 60 cities, with top 10 cities contributing over 50% of revenue [7] - Integrated tourism-related business connected across 55 cities, with top 10 cities contributing over 50% of revenue [7] Company Strategy and Development Direction - The company is focused on enhancing operational resilience and sustainable profitability [4] - Plans to increase presence in cities with stronger performance while managing resources carefully [15] - Continued investments in AI and OMO (online merging offline) systems to improve educational services [8][9] 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 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] - Full fiscal year 2026 revenue guidance remains between $5,145.3 million and $5,390.3 million, indicating a year-over-year increase of 5% to 10% [16] Other Important Information - The company announced 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 [54] Q&A Session Summary Question: Competition landscape in K-12 business - Management noted increased competition during summer but highlighted improved student retention and enrollment in autumn classes [22][23] Question: Share-based compensation increase - The increase in share-based compensation was attributed to grants issued in the previous fiscal year, expected to remain at similar levels in upcoming quarters [28][29] Question: Overseas business growth breakdown - Management indicated that younger age groups in overseas test prep grew over 25% year over year, while consulting business saw strong growth in non-U.S. and U.K. markets [34][35] Question: Operating margin outlook - Management expects continued margin expansion driven by cost control and operational efficiency, with optimism for Q2 [49][50] Question: Tax rate expectations - The effective tax rate was higher in Q1 due to special circumstances, with expectations for it to normalize in future quarters [54]

New Oriental Education & Technology Group (NYSE:EDU) Q1 2026 Earnings Call October 28, 2025 08:00 AM ET Company ParticipantsStephen Yang - Executive President and CFOSisi Zhao - Director of Investor RelationsConference Call ParticipantsElsie Sheng - AnalystFelix Liu - AnalystAlice Cai - AnalystLucy Yu - AnalystTimothy Zhao - AnalystYiqun Chen - AnalystDS Kim - AnalystOperatorEvening and thank you for standing by for New Oriental Education & Technology Group's FY 2026 fifth quarter results earnings conferenc ...

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]