The Motley Fool·2025-12-19 20:10Company Overview - New Oriental Education & Technology Group is a leading provider of private education services in China, operating a vast network of schools and learning centers, offering a diversified portfolio including language training, test preparation, and online education [5][8] - As of the latest report, the company's market capitalization is $9.3 billion, with a revenue of $5 billion and a net income of $367 million for the trailing twelve months [4] Recent Developments - Serenity Capital Management increased its stake in New Oriental Education & Technology Group by approximately $21.6 million, acquiring 411,380 additional shares during the third quarter, bringing its total holdings to 656,878 shares valued at $34.9 million as of September 30 [2][3] - The fund's investment now represents 8.8% of its reportable assets under management, making New Oriental its fifth-largest holding [3][7] Financial Performance - The company's first-quarter fiscal 2026 revenue rose 6.1% year over year to $1.52 billion, while operating income increased by 6% to $311 million, with a non-GAAP operating margin improvement to 22% [10] - The company ended the quarter with over $1.2 billion in cash and plans to return at least 50% of annual net income to shareholders through dividends and buybacks starting this fiscal year [11] Market Position and Strategy - Following regulatory changes in China's education sector, New Oriental has shifted its focus towards adult education, overseas test preparation, and consulting services, adapting its business model to ensure sustainability and profitability [9][10] - The company is positioned as a scaled, profitable survivor in a challenging market, indicating potential for future growth from a more stable base [12]