New Oriental Education & Technology saw its stock rise 3.5% in pre-open trading after releasing fourth fiscal quarter 2026 results ahead of the U.S. market open. The company reported a substantial revenue beat and a pronounced turnaround in profitability compared with the same period in the prior year.
Top-line and profit metrics
Total net revenues for the quarter increased 23.0% year-over-year to $1,529.5 million, comfortably above the consensus analyst estimate of roughly $1.46 billion. Operating income reached $85.8 million, reversing an operating loss of $8.7 million in the prior-year period. Net income attributable to the company climbed 775.8% year-over-year to $62.2 million.
Nuanced earnings details
The results were not uniformly positive. According to the company’s disclosed figures, New Oriental reported a +13.1% EPS surprise and a +4.41% revenue surprise versus analyst forecasts. At the same time, the reported EPS of $0.550 fell short of the $0.940 analyst estimate - a miss that moderated, but did not erase, investor enthusiasm sparked by the revenue outperformance and profit turnaround.
Quarterly momentum and strategic shift
These results follow a solid third quarter, when New Oriental reported total net revenue of $1,417.3 million for Q3 2026, a 19.8% year-over-year increase. Management has continued to reshape the business since regulatory restrictions on academic tutoring, expanding into nonacademic tutoring, intelligent learning systems and devices, and livestreaming e-commerce.
Analyst sentiment entering the print had been broadly constructive. The average 12-month price target among covering analysts stood at $70.61, and 17 analysts recommended buying the stock. Investors appeared willing to look past the EPS shortfall in favor of the decisive revenue beat and the swing from operating loss to operating profit.
Market reaction and implications
Taken together, robust top-line growth, the return to operating profitability, and a supportive macro backdrop outweighed concerns over the EPS miss, driving EDU shares higher in pre-market trading. The quarter underscores the company’s progress in diversifying revenue streams beyond its legacy K-12 tutoring model, which supports the constructive view held by many analysts covering the name.
Summary of the quarter
- Total net revenues: $1,529.5 million, up 23.0% year-over-year.
- Operating income: $85.8 million, versus an operating loss of $8.7 million a year earlier.
- Net income attributable to the company: $62.2 million, up 775.8% year-over-year.
- Reported EPS: $0.550 versus analyst estimate of $0.940; company-disclosed EPS surprise +13.1% and revenue surprise +4.41%.
- Prior quarter (Q3 2026) total net revenue: $1,417.3 million, up 19.8% year-over-year.