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EDUBullishEarningsShort Term

High materiality9/10

New Oriental Announces Results for the Fourth Fiscal Quarter and the Fiscal Year Ended May 31, 2026

StockNews.AIJul 29, 5:11 AM EDT1 source

Trading thesisImportance 9/10

EDU could move higher over 6–12 months on strong guidance and returns.

AI summary

What happened and why it matters

New Oriental delivered a solid Q4 and full-year 2026, with $1.53B in quarterly revenue and a 23% YoY rise. The company guided FY2027 revenue to $6.45–$6.68B (14–18% growth) and reaffirmed a shareholder-return focus via a $200M buyback and roughly $300M in dividends, signaling capital returns alongside improving margins. AI integration and the New Oriental Home platform underpin the growth trajectory and potential earnings stability.

FY2027 revenue guidance implies 14–18% top-line growth.

Sentiment rationale

Strong Q4 and FY2026 results, higher-margin trajectory, and explicit FY2027 growth guidance, plus a buyback and dividend plan, collectively support upside risk-reward. Historical precedent shows robust earnings and share repurchases often lift price, while China regulatory risk remains a macro overhang.

Key facts

01
4Q2026 net revenues rose 23% YoY to $1.53B. Operating income $85.8M.
02
FY2026 net revenues $5.66B; operating income $643.3M. Non-GAAP op income $737.6M.
03
4Q2026 non-GAAP margin 7.2%; GAAP margin 5.6%.
04
FY2027 revenue guidance $6.45–6.68B, up 14–18% YoY.
05
Buyback up to $200M in FY2027; dividend plan ~$300M; 51.5M shares bought for $274M by 7/28/2026.

Earnings

Earnings; the release provides quarterly and yearly results plus forward guidance and capital returns, informing valuation and sentiment for EDU.