Shares of New Oriental Education & Technology Group Inc. (NYSE:EDU) gained 3.4% on Wednesday after the company posted fiscal second-quarter 2026 results that comfortably topped market expectations, underpinned by strong revenue momentum across its education portfolio.
The China-based education group reported adjusted earnings of $0.45 per American Depositary Share (ADS) for the quarter ended November 30, 2025, beating the analyst consensus of $0.34 by around 32%.
Revenue climbed 14.7% year on year to $1.19 billion, exceeding forecasts of $1.16 billion and marking a faster pace of growth compared with earlier quarters.
Profitability improved sharply, with operating income surging 244.4% from a year earlier to $66.3 million. Adjusted operating margin expanded to 7.5%, up from 2.8% in the same quarter last year, reflecting stronger operating leverage and efficiency gains.
“It is encouraging to see an accelerated year over year top line growth of 14.7% in the second fiscal quarter of 2026,” said Michael Yu, executive chairman of New Oriental. “We will sharpen our focus on our core education business, prioritizing enhanced teaching standards and product quality.”
Looking ahead, New Oriental lifted its full-year revenue outlook to a range of $5.29 billion to $5.48 billion, compared with analyst expectations of $5.37 billion. For the third quarter, the company forecast revenue of between $1.31 billion and $1.35 billion.
By segment, the domestic test preparation business aimed at adult and university students delivered 12.8% year-on-year growth, while newer education initiatives recorded a 21.6% increase. Non-academic tutoring courses drew roughly 1.06 million student enrollments during the quarter.
The group also continued to return capital to shareholders, repurchasing about 1.6 million ADSs for approximately $86.3 million under its $300 million share buyback programme announced in October 2025.