Core Viewpoint - New Oriental (EDU.US) reported a 6.1% year-over-year increase in net revenue for Q1, reaching $1.523 billion, exceeding expectations, indicating a potential end to the challenging downturn cycle for FY2025 [1] Financial Performance - The adjusted performance of New Oriental is projected to have over a 10% upward adjustment compared to Bloomberg's expectations, suggesting a return to profitability growth [1] - The company's capital return rate has surpassed 5%, reflecting strong financial health [1] Business Segments - The K12 business segment is expected to accelerate growth by the end of November 2026, driven by a more favorable competitive environment, strong customer retention rates, and improvements in the Xi'an market [1] - The overseas business is also showing positive trends, supported by an increase in child registrations and robust performance in Asian markets, with management noting consistent quarterly improvements since May [1] Analyst Ratings - Morgan Stanley has raised New Oriental's target price from $60.4 to $68.8, maintaining an "outperform" rating [1]