BEIJING, April 22, 2026 /PRNewswire/ — New Oriental Education & Technology Group Inc. (the “Company” or “New Oriental”) (NYSE: EDU/ 9901.SEHK), a provider of private educational services in China, today announced its unaudited financial results for the third fiscal quarter ended February 28, 2026, which is the third quarter of New Oriental’s fiscal year 2026.
Financial Highlights for the Third Fiscal Quarter Ended February 28, 2026
Total net revenues increased by 19.8% year over year to US$1,417.3 million for the third fiscal quarter of 2026. Operating income increased by 44.8% year over year to US$180.3 million for the third fiscal quarter of 2026.Net income attributable to New Oriental increased by 45.3% year over year to US$126.8 million for the third fiscal quarter of 2026.
Key Financial Results
(in thousands US$, except per ADS(1) data)
3Q FY2026
3Q FY2025
% of
change
Net revenues
1,417,341
1,183,055
19.8 %
Operating income
180,320
124,519
44.8 %
Non-GAAP operating income (2)(3)
202,885
142,056
42.8 %
Net income attributable to New Oriental
126,815
87,255
45.3 %
Non-GAAP net income attributable to New Oriental (2)(3)
152,183
113,344
34.3 %
Net income per ADS attributable to New Oriental – basic
0.80
0.54
48.7 %
Net income per ADS attributable to New Oriental – diluted
0.79
0.54
47.7 %
Non-GAAP net income per ADS attributable to New Oriental – basic (2)(3)(4)
0.97
0.70
37.4 %
Non-GAAP net income per ADS attributable to New Oriental – diluted (2)(3)(4)
0.95
0.70
36.5 %
(in thousands US$, except per ADS(1) data)
9M FY2026
9M FY2025
% of
change
Net revenues
4,131,762
3,657,107
13.0 %
Operating income
557,454
436,924
27.6 %
Non-GAAP operating income (2)(3)
627,558
472,550
32.8 %
Net income attributable to New Oriental
412,990
364,616
13.3 %
Non-GAAP net income attributable to New Oriental (2)(3)
483,346
418,988
15.4 %
Net income per ADS attributable to New Oriental – basic
2.61
2.24
16.5 %
Net income per ADS attributable to New Oriental – diluted
2.58
2.22
16.0 %
Non-GAAP net income per ADS attributable to New Oriental – basic (2)(3)(4)
3.05
2.57
18.7 %
Non-GAAP net income per ADS attributable to New Oriental – diluted (2)(3)(4)
3.02
2.55
18.2 %
(1) Each ADS represents ten common shares. The Hong Kong-listed shares are fully fungible with the ADSs listed on NYSE.
(2) GAAP represents Generally Accepted Accounting Principles in the United States of America.
(3) New Oriental provides non-GAAP financial measures on net income attributable to New Oriental, operating income and net income per ADS attributable to New Oriental that exclude share-based compensation expenses, amortization of intangible assets resulting from business acquisitions, (gain) /loss from fair value change of investments, loss from equity method investments, impairment of long-term investments, impairment of goodwill, gain on disposals of investments and others, as well as tax effects on non-GAAP adjustments. For further details on these adjustments, please refer to the section titled “About Non-GAAP Financial Measures” and the tables captioned “Reconciliations of Non-GAAP Measures to the Most Comparable GAAP Measures” set forth at the end of this release.
(4) The Non-GAAP net income per ADS attributable to New Oriental is computed using Non-GAAP net income attributable to New Oriental and the same number of shares and ADSs used in GAAP basic and diluted EPS calculation.
Operating Highlights for the Third Fiscal Quarter Ended February 28, 2026
Michael Yu, New Oriental’s Executive Chairman, commented, “We are pleased to share of continued acceleration in our revenue growth year over year in the third fiscal quarter of 2026. Revenues from overseas test preparation increased by approximately 7.4%. In addition, our domestic test preparation business targeting adults and university students grew by approximately 14.5% year over year, followed by a growth of 23.3% year over year for our new educational business initiatives. Our non-academic tutoring courses was rolled out in around 60 cities, attracting approximately 458,000 student enrollments this quarter. Concurrently, our intelligent learning system and devices were adopted in around 60 cities, with approximately 367,000 active paid users. We are sharpening our focus on our core education business, prioritizing enhancements of teaching standards and product quality. Simultaneously, we will optimize our cost structure and operational efficiency to drive high-quality, efficient, and sustainable growth. We have also established a comprehensive customer service system spanning all departments, which now serves over 330,000 families in 12 cities. This infrastructure strengthens customer loyalty and retention, unlocks cross-selling potential, maximizes customer lifetime value all while lowering both customer acquisition and marketing costs. We remain committed to enhancing our brand influence and creating long-term value for our customers and shareholders.”
Chenggang Zhou, New Oriental’s Chief Executive Officer, added, “In this fiscal quarter, we continued to execute our strategy of disciplined capacity expansion, balancing revenue growth with operational efficiency. As part of our ongoing commitment, we further enhanced our OMO teaching system and deepened AI integration across our education ecosystem. This quarter, we made notable progress in embedding AI into existing educational offerings, refining AI‑powered products, and deploying AI to improve operational efficiency and support for our teaching staff. In addition, East Buy remains committed to offering premium products and exceptional services to Chinese families. We launched multiple live-streaming accounts on Douyin, creating a comprehensive multi-account matrix including East Buy Home, East Buy Fruit & Vegetables, East Buy Nutrition & Health, followed by other vertical channels. We also optimized live-streaming content and introduced innovative initiatives such as live streamer recruitment campaign and supplier conferences. East Buy will continue advancing private label development, membership ecosystem, offline expansion, and operational efficiency to drive sustainable long-term growth.”
Stephen Zhihui Yang, New Oriental’s Executive President and Chief Financial Officer, commented, “We are encouraged by the continued year over year improvement in our Non-GAAP operating margin in this quarter. This was primarily driven by enhanced operational efficiency and improved utilization within our educational business. We recorded a quarterly Non-GAAP operating margin of 14.3%, up by 230 basis points compared to the same period last fiscal year. Looking ahead, we remain committed to executing the cost and efficiency initiatives already underway across key business lines. Targeted structural optimizations have enabled fixed cost reduction and driven greater operational efficiency, steadily elevating our operating profit margins and strengthening our foundation for sustainable, profitable growth.”
Update on Shareholder Return for the Fiscal Year 2026
In October 2025, the Company announced that, pursuant to its previously adopted three-year shareholder return plan, the board of directors had approved an ordinary dividend of US$0.12 per common share, or US$1.20 per ADS, to be distributed in two installments as part of the shareholder return for the fiscal year 2026. The first installment has been fully paid to shareholders and ADS holders. The board has now approved the payment of the second installment of US$0.06 per common share, or US$0.6 per ADS, to holders of common shares and holders of ADSs of record as of the close of business on May 15, 2026, Beijing/Hong Kong Time and New York Time, respectively, with the expected payment date to be on or around June 2, 2026 and June 5, 2026 for holders of common shares and holders of ADSs, respectively.
For holders of common shares, in order to qualify for the second installment of the dividend, all valid documents for the transfer of shares accompanied by the relevant share certificates must be lodged for registration with the Company’s Hong Kong branch share registrar, Computershare Hong Kong Investor Services Limited, at Shops 1712-1716, 17th Floor, Hopewell Centre, 183 Queen’s Road East, Wanchai, Hong Kong no later than 4:30 p.m. on May 15, 2026 (Beijing/Hong Kong Time). Dividend to be paid to the Company’s ADS holders through the depositary bank will be subject to the terms of the deposit agreement.
Additionally, as part of the shareholder return for the fiscal year 2026, the Company also announced in October 2025 a share repurchase program, under which the Company is authorized to repurchase up to US$300 million of its ADSs or common shares over the subsequent 12 months. As of April 21, 2026, the Company had repurchased a total of approximately 3.3 million ADSs for an aggregate consideration of approximately US$184.3 million from the open market under this share repurchase program.
Financial Results for the Third Fiscal Quarter Ended February 28, 2026
Net Revenues
For the third fiscal quarter of 2026, New Oriental reported net revenues of US$1,417.3 million, representing a 19.8% increase year over year. The growth was mainly driven by the increase in net revenues from the Company’s new educational business initiatives.
Operating Costs and Expenses
Operating costs and expenses for the quarter were US$1,237.0 million, representing a 16.9% increase year over year.
Cost of revenues increased by 23.4% year over year to US$656.2 million.Selling and marketing expenses increased by 9.1% year over year to US$198.8 million.General and administrative expenses for the quarter increased by 10.8% year over year to US$382.1 million.
Total share-based compensation expenses, which were allocated to related operating costs and expenses, increased by 30.9% to US$21.1 million in the third fiscal quarter of 2026.
Operating Income and Operating Margin
Operating income was US$180.3 million, representing a 44.8% increase year over year. Non-GAAP income from operations for the quarter, excluding share-based compensation expenses and amortization of intangible assets resulting from business acquisitions, was US$202.9 million, representing a 42.8% increase year over year.
Operating margin for the quarter was 12.7%, compared to 10.5% in the same period of the prior fiscal year. Non-GAAP operating margin, which excludes share-based compensation expenses and amortization of intangible assets resulting from business acquisitions, for the quarter was 14.3%, compared to 12.0% in the same period of the prior fiscal year.
Net Income and Net Income per ADS
Net income attributable to New Oriental for the quarter was US$126.8 million, representing a 45.3% increase year over year. Basic and diluted net income per ADS attributable to New Oriental were US$0.80 and US$0.79, respectively.
Non-GAAP Net Income and Non-GAAP Net Income per ADS
Non-GAAP net income attributable to New Oriental for the quarter, excluding share-based compensation expenses, amortization of intangible assets resulting from business acquisitions, (gain)/loss from fair value change of investments, loss from equity method investments, gain on disposals of investments and others, as well as tax effects on non-GAAP adjustments, was US$152.2 million, representing a 34.3% increase year over year. Non-GAAP basic and diluted net income per ADS attributable to New Oriental were US$0.97 and US$0.95, respectively.
Cash Flow
Net operating cash outflow for the third fiscal quarter of 2026 was approximately US$7.5 million and capital expenditures for the quarter were US$68.8 million.
Balance Sheet
As of February 28, 2026, New Oriental had cash and cash equivalents of US$1,783.4 million. In addition, the Company had US$1,491.7 million in term deposits and US$1,953.2 million in short-term investments.
New Oriental’s deferred revenue, which represents cash collected upfront from customers and related revenue that will be recognized as the services or goods are delivered, at the end of the third quarter of fiscal year 2026 was US$1,885.9 million, an increase of 7.8% as compared to US$1,749.9 million at the end of the third quarter of fiscal year 2025.
Financial Results for the Nine Months Ended February 28, 2026
For the first nine months of fiscal year 2026, New Oriental reported net revenues of US$4,131.8 million, representing a 13.0% increase year over year.
Operating income was US$557.5 million, representing a 27.6% increase year over year. Non-GAAP operating income, excluding share-based compensation expenses, amortization of intangible assets resulting from business acquisitions for the first nine months of fiscal year 2026 was US$627.6 million, representing a 32.8% increase year over year.
Operating margin for the first nine months of fiscal year 2026 was 13.5%, compared to 11.9% for the same period of the prior fiscal year. Non-GAAP operating margin, which excludes share-based compensation expenses and amortization of intangible assets resulting from business acquisitions, for the first nine months of fiscal year 2026, was 15.2%, compared to 12.9% for the same period of the prior fiscal year.
Net income attributable to New Oriental for the first nine months of fiscal year 2026 was US$413.0 million, representing a 13.3% increase year over year. Basic and diluted net income per ADS attributable to New Oriental for the first nine months of fiscal year 2026 amounted to US$2.61 and US$2.58, respectively.
Non-GAAP net income attributable to New Oriental, excluding share-based compensation expenses, amortization of intangible assets resulting from business acquisitions, (gain)/loss from fair value change of investments, loss from equity method investments, gain on disposals of investments and others, as well as tax effects on non-GAAP adjustments, for the first nine months of fiscal year 2026 was US$483.3 million, representing a 15.4% increase year over year. Non-GAAP basic and diluted net income per ADS attributable to New Oriental for the first nine months of fiscal year 2026 amounted to US$3.05 and US$3.02, respectively.
Outlook for the Fourth Quarter of the Fiscal Year 2026
New Oriental expects total net revenues in the fourth quarter of the fiscal year 2026 (March 1, 2026 to May 31, 2026) to be in the range of US$1,429.6 million to US$1,466.9 million, representing year over year increase in the range of 15% to 18%.
Driven by encouraging growth across various business lines, New Oriental raises the full year guidance of total net revenues in the fiscal year 2026 (June 1, 2025 to May 31, 2026) to be in the range of US$5,561.4 million to US$5,598.7 million, representing a year over year increase in the range of 13% to 14%.
This forecast reflects New Oriental’s current and preliminary view, which is subject to change. The forecast is based on the current USD/RMB exchange rate, which is also subject to change.
Conference Call Information
New Oriental’s management will host an earnings conference call at 8 AM on April 22, 2026, U.S. Eastern Time (8 PM on April 22, 2026, Beijing/Hong Kong Time).
Please register in advance of the conference, using the link provided below. Upon registering, you will be provided with participant dial-in numbers, and unique personal PIN.
Conference call registration link:
https://register-conf.media-server.com/register/BI2d1b37f83b4645f08b73fdd17af502f3.
It will automatically direct you to the registration page of “New Oriental FY2026 Q3 Earnings Conference Call” where you may fill in your details for RSVP.
In the 10 minutes prior to the call start time, you may use the conference access information (including dial in number(s) and personal PIN) provided in the confirmation email received at the point of registering.
Joining the conference call via a live webcast:
Additionally, a live and archived webcast of the conference call will be available at http://investor.neworiental.org.
Listening to the conference call replay:
A replay of the conference call may be accessed via the webcast on-demand by registering at https://edge.media-server.com/mmc/p/7x5ve8hp first. The replay will be available until April 22, 2027.
About New Oriental
New Oriental is a provider of private educational services in China offering a wide range of educational programs, services and products to a varied student population throughout China. New Oriental’s program, service and product offerings mainly consist of educational services and test preparation courses, private label products and livestreaming e-commerce, overseas study consulting services, and educational materials and distribution. New Oriental is listed on NYSE (NYSE: EDU) and SEHK (9901.SEHK), respectively. New Oriental’s ADSs, each of which represents ten common shares, are listed and traded on the NYSE. The Hong Kong-listed shares are fully fungible with the ADSs listed on NYSE.
For more information about New Oriental, please visit http://www.neworiental.org/english/.
Safe Harbor Statement
This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Among other things, the outlook for the fourth quarter and full year of fiscal year 2026, quotations from management in this announcement, as well as New Oriental’s strategic and operational plans, contain forward-looking statements. New Oriental may also make written or oral forward-looking statements in its reports filed or furnished to the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about New Oriental’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company’s ability to effectively and efficiently manage changes of its existing business and new business; its ability to execute its business strategies; uncertainties in relation to the interpretation and implementation of or proposed changes to, the PRC laws, regulations and policies regarding the private education industry; its ability to attract students without a significant increase in course fees; its ability to maintain and enhance its “New Oriental” brand; its ability to maintain consistent teaching quality throughout its school network, or service quality throughout its brand; its ability to achieve the benefits it expects from recent and future acquisitions; the outcome of ongoing, or any future, litigation or arbitration, including those relating to copyright and other intellectual property rights; competition in the private education sector and livestreaming e-commerce business in China; the continuing efforts of its senior management team and other key personnel, health epidemics and other outbreaks in China; and general economic conditions in China. Further information regarding these and other risks is included in its annual report on Form 20-F and other documents filed with the Securities and Exchange Commission. New Oriental does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release and in the attachments is as of the date of this press release, and New Oriental undertakes no duty to update such information, except as required under applicable law.
About Non-GAAP Financial Measures
To supplement New Oriental’s consolidated financial results presented in accordance with GAAP, New Oriental uses the following measures defined as non-GAAP financial measures by the SEC: net income excluding share-based compensation expenses, amortization of intangible assets resulting from business acquisitions, (gain)/loss from fair value change of investments, loss/(gain) from equity method investments, impairment of long-term investments and goodwill, gain on disposals of investments and others, as well as tax effects on non-GAAP adjustments; operating income excluding share-based compensation expenses, amortization of intangible assets resulting from business acquisitions, and impairment of goodwill; operating margin excluding share-based compensation expenses, amortization of intangible assets resulting from business acquisitions, and impairment of goodwill; and basic and diluted net income per ADS and per share excluding share-based compensation expenses, amortization of intangible assets resulting from business acquisitions, loss/(gain) from fair value change of investments, loss/(gain) from equity method investments, impairment of long-term investments and goodwill, gain on disposals of investments and others, as well as tax effects on non-GAAP adjustments. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the tables captioned “Reconciliations of non-GAAP measures to the most comparable GAAP measures” set forth at the end of this release.
New Oriental believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding from each non-GAAP measure certain items that may not be indicative of its operating performance from a cash perspective. New Oriental believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management’s internal comparisons to New Oriental’s historical performance and liquidity. New Oriental believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using these non-GAAP measures is that they exclude from each non-GAAP measure certain items that have been and will continue to be for the foreseeable future a significant recurring expense in its business. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables have more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures.
Contacts
For investor and media inquiries, please contact:
Ms. Rita Fong
FTI Consulting
Tel: +852 3768 4548
Email: rita.fong@fticonsulting.com
Ms. Sisi Zhao
New Oriental Education & Technology Group Inc.
Tel: +86-10-6260-5568
Email: zhaosisi@xdf.cn
NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
As of February 28
As of May 31
2026
2025
(Unaudited)
(Audited)
USD
USD
ASSETS:
Current assets:
Cash and cash equivalents
1,783,403
1,612,379
Restricted cash, current
157,471
180,724
Term deposits, current
1,065,883
1,092,115
Short-term investments
1,953,163
1,873,502
Accounts receivable, net
35,716
33,629
Inventory, net
86,048
80,884
Prepaid expenses and other current assets, net
338,542
307,902
Amounts due from related parties, current
6,872
6,567
Total current assets
5,427,098
5,187,702
Restricted cash, non-current
95,923
24,030
Term deposits, non-current
425,857
355,665
Property and equipment, net
826,853
767,346
Land use rights, net
56,735
54,900
Amounts due from related parties, non-current
14,159
12,464
Long-term deposits
55,337
48,815
Intangible assets, net
9,168
13,020
Goodwill, net
45,952
43,832
Long-term investments, net
382,191
388,481
Deferred tax assets, net
85,603
97,932
Right-of-use assets
809,409
793,842
Other non-current assets
10,075
17,470
Total assets
8,244,360
7,805,499
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable
108,509
80,484
Accrued expenses and other current liabilities
795,005
830,583
Income taxes payable
215,512
167,881
Amounts due to related parties
396
405
Deferred revenue
1,885,872
1,954,464
Operating lease liability, current
273,263
255,997
Total current liabilities
3,278,557
3,289,814
Deferred tax liabilities
14,148
14,174
Unsecured senior notes
–
14,403
Operating lease liabilities, non-current
533,707
533,376
Total long-term liabilities
547,855
561,953
Total liabilities
3,826,412
3,851,767
Equity
New Oriental Education & Technology Group Inc. shareholders’ equity
4,086,130
3,661,873
Non-controlling interests
331,818
291,859
Total equity
4,417,948
3,953,732
Total liabilities and equity
8,244,360
7,805,499
NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except for per share and per ADS amounts)
For the Three Months Ended February 28
2026
2025
(Unaudited)
(Unaudited)
USD
USD
Net revenues
1,417,341
1,183,055
Operating cost and expenses (note 1)
Cost of revenues
656,174
531,586
Selling and marketing
198,785
182,240
General and administrative
382,062
344,710
Total operating cost and expenses
1,237,021
1,058,536
Operating income
180,320
124,519
Gain/(Loss) from fair value change of investments
1,202
(212)
Other income, net
18,466
29,095
Provision for income taxes
(54,723)
(52,579)
Loss from equity method investments
(5,381)
(11,157)
Net income
139,884
89,666
Net income attributable to non-controlling interests
(13,069)
(2,411)
Net income attributable to New Oriental Education &
Technology Group Inc.’s shareholders
126,815
87,255
Net income per share attributable to New Oriental-Basic
(note 2)
0.08
0.05
Net income per share attributable to New Oriental-Diluted
(note 2)
0.08
0.05
Net income per ADS attributable to New Oriental-Basic
(note 2)
0.80
0.54
Net income per ADS attributable to New Oriental-Diluted
(note 2)
0.79
0.54
NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.
RECONCILIATIONS OF NON-GAAP MEASURES TO THE MOST COMPARABLE GAAP MEASURES
(In thousands except for per share and per ADS amounts)
For the Three Months Ended February 28
2026
2025
(Unaudited)
(Unaudited)
USD
USD
Operating income
180,320
124,519
Share-based compensation expenses
21,092
16,119
Amortization of intangible assets resulting from
business acquisitions
1,473
1,418
Non-GAAP operating income
202,885
142,056
Operating margin
12.7 %
10.5 %
Non-GAAP operating margin
14.3 %
12.0 %
Net income attributable to New Oriental
126,815
87,255
Share-based compensation expenses
20,223
14,151
(Gain)/Loss from fair value change of investments
(1,202)
212
Amortization of intangible assets resulting from
business acquisitions
913
882
Loss from equity method investments
5,381
11,157
Gain on disposals of investments and others
(36)
(161)
Tax effects on Non-GAAP adjustments
89
(152)
Non-GAAP net income attributable to New Oriental
152,183
113,344
Net income per ADS attributable to New Oriental-
Basic (note 2)
0.80
0.54
Net income per ADS attributable to New Oriental-
Diluted (note 2)
0.79
0.54
Non-GAAP net income per ADS attributable to New
Oriental – Basic (note 2)
0.97
0.70
Non-GAAP net income per ADS attributable to New
Oriental – Diluted (note 2)
0.95
0.70
Weighted average shares used in calculating basic
net income per ADS (note 2)
1,576,580,766
1,612,894,657
Weighted average shares used in calculating
diluted net income per ADS (note 2)
1,596,357,200
1,624,843,387
Net income per share – basic
0.08
0.05
Net income per share – diluted
0.08
0.05
Non-GAAP net income per share – basic
0.10
0.07
Non-GAAP net income per share – diluted
0.10
0.07
Notes:
Note 1: Share-based compensation expenses (in thousands) are included in the operating cost and expenses as
follows:
For the Three Months Ended February 28
2026
2025
(Unaudited)
(Unaudited)
USD
USD
Cost of revenues
211
698
Selling and marketing
622
1,894
General and administrative
20,259
13,527
Total
21,092
16,119
Note 2: Each ADS represents ten common shares.
NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
For the Three Months Ended February 28
2026
2025
(Unaudited)
(Unaudited)
USD
USD
Net cash (used in)/provided by operating activities
(7,455)
963
Net cash provided by investing activities
48,717
79,891
Net cash used in financing activities
(137,988)
(94,581)
Effect of exchange rate changes
35,385
(8,069)
Net change in cash, cash equivalents and restricted cash
(61,341)
(21,796)
Cash, cash equivalents and restricted cash at beginning
of period
2,098,138
1,611,073
Cash, cash equivalents and restricted cash at end of
period
2,036,797
1,589,277
NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except for per share and per ADS amounts)
For the Nine Months Ended February 28
2026
2025
(Unaudited)
(Unaudited)
USD
USD
Net revenues
4,131,762
3,657,107
Operating cost and expenses (note 1)
Cost of revenues
1,850,856
1,613,419
Selling and marketing
593,346
572,053
General and administrative
1,130,106
1,034,711
Total operating cost and expenses
3,574,308
3,220,183
Operating income
557,454
436,924
Gain/(Loss) from fair value change of investments
7,651
(9,620)
Other income, net
61,311
99,190
Provision for income taxes
(170,732)
(144,759)
Loss from equity method investments
(11,997)
(17,239)
Net income
443,687
364,496
Net (income)/loss attributable to non-controlling interests
(30,697)
120
Net income attributable to New Oriental Education &
Technology Group Inc.’s shareholders
412,990
364,616
Net income per share attributable to New Oriental-Basic
(note 2)
0.26
0.22
Net income per share attributable to New Oriental-
Diluted (note 2)
0.26
0.22
Net income per ADS attributable to New Oriental-Basic
(note 2)
2.61
2.24
Net income per ADS attributable to New Oriental-Diluted
(note 2)
2.58
2.22
NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.
RECONCILIATION OF NON-GAAP MEASURES TO THE MOST COMPARABLE GAAP MEASURES
(In thousands except for per share and per ADS amounts)
For the Nine Months Ended February 28
2026
2025
(Unaudited)
(Unaudited)
USD
USD
Operating income
557,454
436,924
Share-based compensation expenses
65,755
31,297
Amortization of intangible assets resulting from
business acquisitions
4,349
4,329
Non-GAAP operating income
627,558
472,550
Operating margin
13.5 %
11.9 %
Non-GAAP operating margin
15.2 %
12.9 %
Net income attributable to New Oriental
412,990
364,616
Share-based compensation expenses
63,084
27,655
(Gain) /Loss from fair value change of investments
(7,651)
9,620
Amortization of intangible assets resulting from
business acquisitions
2,696
2,703
Loss from equity method investments
11,997
17,239
Gain on disposals of investments and others
(1,516)
(161)
Tax effects on Non-GAAP adjustments
1,746
(2,684)
Non-GAAP net income attributable to New Oriental
483,346
418,988
Net income per ADS attributable to New Oriental-
Basic (note 2)
2.61
2.24
Net income per ADS attributable to New Oriental-
Diluted (note 2)
2.58
2.22
Non-GAAP net income per ADS attributable to New
Oriental – Basic (note 2)
3.05
2.57
Non-GAAP net income per ADS attributable to New
Oriental – Diluted (note 2)
3.02
2.55
Weighted average shares used in calculating basic net
income per ADS (note 2)
1,584,608,307
1,630,423,658
Weighted average shares used in calculating diluted
net income per ADS (note 2)
1,599,858,607
1,640,843,710
Net income per share – basic
0.26
0.22
Net income per share – diluted
0.26
0.22
Non-GAAP net income per share – basic
0.31
0.26
Non-GAAP net income per share – diluted
0.30
0.26
Notes:
Note 1: Share-based compensation expenses (in thousands) are included in the operating costs and expenses as
follows:
For the Nine Months Ended February 28
2026
2025
(Unaudited)
(Unaudited)
USD
USD
Cost of revenues
666
(1,738)
Selling and marketing
1,918
3,383
General and administrative
63,171
29,652
Total
65,755
31,297
Note 2: Each ADS represents ten common shares.
NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
For the Nine Months Ended February 28
2026
2025
(Unaudited)
(Unaudited)
USD
USD
Net cash provided by operating activities
508,331
497,470
Net cash used in investing activities
(125,576)
(5,136)
Net cash used in financing activities
(227,433)
(486,494)
Effect of exchange rate changes
64,342
(5,667)
Net change in cash, cash equivalents and restricted cash
219,664
173
Cash, cash equivalents and restricted cash at beginning of
period
1,817,133
1,589,104
Cash, cash equivalents and restricted cash at end of period
2,036,797
1,589,277
View original content:https://www.prnewswire.com/news-releases/new-oriental-announces-results-for-the-third-fiscal-quarter-ended-february-28-2026-302750038.html
SOURCE New Oriental Education and Technology Group Inc.
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