New Oriental Education stock climbed 16.7% to HK$46.58 on Thursday following the release of its quarterly and annual results for the period ended May 31, 2026. The company reported a strong set of headline figures for both the fourth fiscal quarter and the full 2026 fiscal year, prompting the market reaction.
For the fourth quarter, net revenue rose 23.0% year-over-year to $1.53 billion. Operating profit for the quarter increased by more than tenfold versus the comparable prior-year period. Net profit attributable to shareholders expanded 775.8% year-over-year, reaching $62.2 million for the quarter.
On a full-year basis, New Oriental posted net revenue of $5.66 billion, an increase of 15.5% compared with the prior fiscal year. Full-year net profit grew 27.8% to $475 million. The company reported non-GAAP diluted earnings per American Depositary Share of $0.55, ahead of an analyst consensus of about $0.52.
Beyond the financials, management outlined a $500 million capital return plan for fiscal 2027. The package includes approximately $300 million in cash dividends, which the company intends to pay in two installments, and the initiation of a new share repurchase program. Management also issued forward guidance calling for revenue growth of 14% to 18% in fiscal 2027, reaffirming confidence in the performance of its core educational services business.
Investors reacted to the combination of an earnings beat, a shareholder-friendly capital return program and explicit revenue guidance for the year ahead. The stock move on the day of the release reflects the market pricing in the stronger financial trajectory and the immediate potential for enhanced cash returns to holders.
While the quarterly and annual numbers showed marked improvement on both top-line and bottom-line metrics, management's capital return announcement served as an additional catalyst by outlining tangible near-term payouts and a buyback mechanism that could affect equity supply.
Data recap
- Q4 net revenue: $1.53 billion, +23.0% year-over-year
- Q4 operating profit: more than tenfold increase versus prior year
- Q4 net profit attributable to shareholders: $62.2 million, +775.8% year-over-year
- FY2026 net revenue: $5.66 billion, +15.5% year-over-year
- FY2026 net profit: $475 million, +27.8% year-over-year
- Non-GAAP diluted EPS per ADS: $0.55 (analyst forecast ~ $0.52)
- FY2027 capital return plan: $500 million total, including ~ $300 million in cash dividends paid in two installments and a new share repurchase program
- FY2027 revenue guidance: +14% to +18%