Company Overview: New Oriental Education & Technology Group Key Financial Metrics - Revenue for FY2026 Q2 reached $1.191 billion, representing a year-over-year increase of 14.7% [1] - Operating profit was $66 million, showing a significant year-over-year growth of 244.4% [1] - Non-GAAP operating profit stood at $89 million, reflecting a year-over-year increase of 206.9% [1] - Net profit attributable to shareholders was $46 million, up 42.3% year-over-year [1] - Non-GAAP net profit attributable to shareholders was $73 million, with a year-over-year increase of 68.6% [1] Business Segment Performance - The overseas exam preparation segment grew by 4.1% year-over-year [1] - Domestic adult exam preparation and university student business increased by 12.8% year-over-year [1] - New education business saw a growth of 21.6% year-over-year [1] - Non-academic training had 1.058 million students in Q2 [1] - Active paid users for smart learning systems and devices reached 352,000 [1] Operational Metrics - The company's operating profit margin (OPM) for Q2 was 5.6%, compared to 1.9% in the same period last year [1] - Non-GAAP OPM increased to 7.5%, a rise of 470 basis points year-over-year [1] Cash and Investment Position - As of January 27, 2026, the company repurchased approximately 1.6 million American Depositary Shares under the new share repurchase plan, totaling about $86 million [2] - Cash and cash equivalents at the end of the period were $1.843 billion, with time deposits of $1.610 billion and short-term investments of $1.875 billion [2] - Contract liabilities as of the end of November 2025 were $2.162 billion, reflecting a year-over-year increase of 10.2% [2] Future Guidance - The company expects FY2026 Q3 revenue to be between $1.313 billion and $1.349 billion, representing a year-over-year growth of 11% to 14% [2] - Full-year revenue guidance for FY2026 has been raised to between $5.292 billion and $5.488 billion, indicating a year-over-year increase of 8% to 12%, up from the previous guidance of 5% to 10% [2]

Core Viewpoint - New Oriental reported a significant increase in its financial performance for the second quarter of fiscal year 2026, indicating strong growth across various business segments [1] Financial Performance - Net revenue reached $1.191 billion, representing a year-on-year increase of 14.7% [1] - Operating profit was $66.3 million, showing a substantial year-on-year growth of 244.4% [1] - Net profit attributable to shareholders was $45.5 million, up 42.3% compared to the previous year [1] Business Segments - Revenue from overseas exam preparation business grew by approximately 4.1% year-on-year [1] - Domestic exam preparation business for adults and college students saw a year-on-year increase of about 12.8% [1] - New education business achieved a year-on-year growth of 21.6% [1] Student Engagement - Non-academic tutoring courses have been launched in around 60 cities, attracting approximately 1.058 million students [1] - Smart learning systems and devices have been implemented in about 60 cities, with active paying users reaching 352,000 [1]

Core Viewpoint - New Oriental's financial performance for the second quarter of fiscal year 2026 shows significant growth, with net revenue increasing by 14.7% year-on-year to $1.191 billion, and operating profit rising by 244.4% to $66.3 million [1] Financial Performance - For the first half of fiscal year 2026, net revenue reached approximately $2.714 billion, a year-on-year increase of 9.7% - Operating profit for the same period was approximately $377 million, up 20.7% year-on-year - Net profit attributable to shareholders was approximately $286 million, reflecting a 3.2% year-on-year growth [1] Business Segments - Revenue from overseas exam preparation increased by approximately 4.1% year-on-year - Domestic exam preparation for adults and college students grew by about 12.8% year-on-year - New education business achieved a year-on-year growth of 21.6% - Non-academic tutoring courses have been launched in around 60 cities, attracting approximately 1.058 million students - The smart learning system and devices have been implemented in about 60 cities, with active paying users reaching approximately 352,000 [2] Strategic Initiatives - The company is focusing on enhancing core educational services, improving teaching quality and product standards, and optimizing cost structures and operational efficiency - A comprehensive cross-department customer service system has been initiated to enhance customer loyalty and retention, promote cross-department sales, and reduce customer acquisition costs [2] - The company is investing in AI technology and integrating it into existing educational products to improve operational efficiency and support for teaching teams [2] Shareholder Returns - The board has approved a cash dividend of $0.12 per ordinary share (or $1.20 per American Depositary Share), to be distributed in two installments as part of the fiscal year 2026 shareholder return plan - The first installment has been fully distributed, with the second installment to be announced later [3] Share Buyback Program - As part of the shareholder return plan, the company announced a share buyback program, authorizing up to $300 million in American Depositary Shares or ordinary shares over the next 12 months - As of January 27, 2026, approximately 1.6 million American Depositary Shares have been repurchased at a total cost of about $86.3 million [3] Future Outlook - The company expects net revenue for the third quarter of fiscal year 2026 (from December 1, 2025, to February 28, 2026) to be between $1.313 billion and $1.349 billion, representing a year-on-year growth rate of 11% to 14% [3]

Core Viewpoint - New Oriental's financial performance for the second quarter of fiscal year 2026 shows significant growth, with net revenue increasing by 14.7% year-on-year to $1.191 billion, and operating profit rising by 244.4% to $66.3 million [1] Financial Performance - For the first half of fiscal year 2026, net revenue reached approximately $2.714 billion, a year-on-year increase of 9.7% - Operating profit for the same period was approximately $377 million, up 20.7% year-on-year - Net profit attributable to shareholders was approximately $286 million, reflecting a 3.2% year-on-year growth [1] Business Segments - Revenue from overseas exam preparation increased by approximately 4.1% year-on-year - Domestic exam preparation for adults and college students grew by about 12.8% year-on-year - New education business achieved a year-on-year growth of 21.6% - Non-subject tutoring courses have been launched in around 60 cities, attracting approximately 1.058 million students [2] Strategic Initiatives - The company is focusing on enhancing core educational services and improving teaching quality and product standards - A comprehensive cross-departmental customer service system has been initiated to boost customer loyalty and retention, while also reducing customer acquisition costs [2] - The company is investing in AI technology and integrating it into existing educational products to enhance operational efficiency [2] Shareholder Returns - The board has approved a cash dividend of $0.12 per ordinary share (or $1.20 per American depositary share), to be distributed in two installments as part of the shareholder return plan for fiscal year 2026 [3] - A share buyback plan has been announced, authorizing the repurchase of up to $300 million of American depositary shares or ordinary shares within the next 12 months [3] Future Outlook - For the third quarter of fiscal year 2026, the company expects net revenue to be between $1.313 billion and $1.349 billion, representing a year-on-year growth rate of 11% to 14% [3]

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]