TAL Education Group (NYSE:TAL) surged in premarket trading on Thursday after the Chinese smart learning solutions provider delivered a substantial earnings beat for its third quarter of fiscal 2026, despite revenue coming in slightly below forecasts.
Shares climbed about 9.5% ahead of the open following the results.
TAL reported adjusted earnings per share of $0.25, far exceeding analysts’ expectations of $0.07. Revenue rose 27% year on year to $770.2 million from $606.4 million in the prior-year period, although it narrowly missed the consensus estimate of $775.68 million.
Profitability improved sharply during the quarter, with income from operations reaching $93.1 million, compared with an operating loss of $17.4 million a year earlier. Gross margin expanded to 56.1%, up from 52.7% in the same quarter last year.
“In the third quarter of fiscal year 2026, our net revenues continued their steady growth trajectory. We remain focused on integrating technology into learning experiences and are dedicated to enhancing our content, products, and services to support students’ holistic development,” said Alex Peng, TAL’s President and Chief Financial Officer.
On a non-GAAP basis, income from operations climbed to $104 million, a dramatic turnaround from a non-GAAP loss of $1.9 million in the comparable period of fiscal 2025. Net income attributable to TAL jumped to $130.6 million from $23.1 million a year earlier.
The company ended the quarter with a strong balance sheet, reporting cash, cash equivalents and short-term investments of $3.62 billion as of November 30, 2025. TAL also disclosed that it repurchased 844,856 common shares for roughly $27.7 million under its $600 million share buyback programme approved in July 2025.