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EDUBullishEarningsShort Term

High materiality8/10

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 8/10

Buy EDU on improving profitability and 14–18% FY2027 revenue growth, 3–9 month horizon.

AI summary

What happened and why it matters

New Oriental reported a strong FY2026 close, with Q4 revenue of US$1.53B (+23% YoY) and profitability turning positive. Full-year revenue reached US$5.66B, with GAAP margin at 11.4% and Non-GAAP margin at 13.0%, while net income rose 27.8%. FY2027 guidance targets US$6.45–6.68B revenue (14–18% growth), supported by AI integrations and robust cash-based shareholder returns.

FY2027 revenue guidance implies 14–18% growth; potential multiple expansion.
Significant buyback activity supports EPS and share price floor.
2027 dividend/returns plan reinforces total shareholder return.

Sentiment rationale

Strong FY2026 execution with 15–23% revenue growth, margin expansion (GAAP 11.4%, Non-GAAP 13.0%), and a clear FY2027 guidance base (14–18% growth) should drive earnings upside and investor confidence. The ongoing buyback (~$200M planned for 2027) and dividend support augment per-share metrics, reducing float and potentially lifting multiple compression defenses observed in cyclical/regulated education peers.

Key facts

01
4Q FY2026 net revenues US$1.5295B; up 23% YoY. Growth from new initiatives.
02
FY2026 net revenues US$5.6613B; up 15.5% YoY.
03
FY2026 GAAP operating income US$643.3M; margin 11.4%.
04
FY2026 Non-GAAP operating income US$737.6M; margin 13.0%.
05
FY2027 revenue guidance US$6.4539–6.6803B; +14–18%.

Earnings

Earnings. The release centers on quarterly and full-year results, Non-GAAP metrics, and forward guidance, including a sizeable shareholder-return plan, which collectively inform profitability trajectory and valuation expectations for EDU.