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New Oriental Education Tech
(NYSE:EDU)
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Rating:77Outperform
Price Target:
$66.00
▲(15.65% Upside)
Action:Reiterated
Date:10/28/26
EDU scores well primarily on improving financial performance (revenue and margin recovery with low leverage) and a constructive, guidance-supported earnings outlook. Valuation is supportive with a moderate P/E and ~2% yield. Technicals are neutral-to-mildly positive, with limited near-term momentum keeping the overall score below top-tier.
Positive Factors
Revenue Growth and Outlook
Strong quarterly growth and reiterated fiscal 2027 guidance indicate broad demand across education and adjacent offerings. This provides a visible foundation for continued expansion over the next several quarters, while management’s outlook supports confidence that growth is not limited to a single reporting period.
Negative Factors
Consolidated Margin Mix Pressure
Although individual businesses improved margins, faster growth in East Buy is shifting the group toward a lower-margin mix and limiting consolidated expansion. This may restrain near-term earnings conversion and means the company must achieve further efficiency gains for overall profitability to accelerate.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth and Outlook
Strong quarterly growth and reiterated fiscal 2027 guidance indicate broad demand across education and adjacent offerings. This provides a visible foundation for continued expansion over the next several quarters, while management’s outlook supports confidence that growth is not limited to a single reporting period.
Read all positive factors
New Oriental Education Tech (EDU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.23B
Dividend Yield2.07%
Average Volume (3M)663.99K
Price to Earnings (P/E)19.7
Beta (1Y)0.57
Revenue Growth15.64%
EPS Growth32.37%
CountryUS
Employees81,054
SectorConsumer Defensive
Sector Strength42
IndustryEducation & Training Services
Share Statistics
EPS (TTM)3.00
Shares Outstanding171,206,090
10 Day Avg. Volume788,970
30 Day Avg. Volume663,987
Financial Highlights & Ratios
PEG Ratio0.52
Price to Book (P/B)1.86
Price to Sales (P/S)1.31
P/FCF Ratio7.24
Enterprise Value/Market Cap0.38
Enterprise Value/Revenue0.55
Enterprise Value/Gross Profit1.01
Enterprise Value/Ebitda4.26
Forecast
1Y Price Target
$71.58Price Target Upside25.43% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)4.4
Revenue Forecast (FY)$6.63B
New Oriental Education Tech Business Overview & Revenue Model
Company Description
New Oriental Education & Technology Group Inc. (EDU) operates as a prominent private education provider throughout the People's Republic of China, primarily recognized by its "New Oriental" brand. The company organizes its operations across key se...
How the Company Makes Money
The company makes money primarily by charging customers for education services and selling education-related products. Key revenue streams historically included tuition and fees from in-person and online courses (such as language training, test pr...
New Oriental Education Tech Earnings Call Summary
Earnings Call Date:Oct 28, 2026
(Q1-2027)
| Next Earnings Date:Jan 21, 2027
Earnings Call Sentiment Positive
The call was strongly positive overall. Revenue exceeded the upper end of guidance, profitability increased, core education and East Buy margins expanded on a standalone basis, new initiatives delivered growth, East Buy and New Oriental Home showed strong momentum, and full-year guidance was reiterated. The main challenges were higher operating costs, stock-based compensation, stable rather than expanding consolidated margins due to business mix, overseas economic and international headwinds, and a temporary enrollment decline caused by timing differences.Positive Updates
Revenue and Non-GAAP Operating Income Growth
Total net revenue grew 23.1% year over year to $1.87 thousand million, exceeding the upper range of prior guidance. Non-GAAP operating income rose 21.2% year over year to $406.8 million.
Negative Updates
Consolidated Operating Margin Remained Stable
Although core education and East Buy margins expanded, the consolidated operating margin remained broadly stable year over year because East Buy's rapid growth increased its share of group revenue and shifted the business mix. Management noted that core education margins are typically higher than East Buy's in the first quarter due to seasonality.
Read all updates
Q1-2027 Updates
Positive
Negative
Revenue and Non-GAAP Operating Income Growth
Total net revenue grew 23.1% year over year to $1.87 thousand million, exceeding the upper range of prior guidance. Non-GAAP operating income rose 21.2% year over year to $406.8 million.
Read all positive updates
Company Guidance
For fiscal year 2027, New Oriental reiterated total net revenue guidance of $6.45 thousand million to $6.68 thousand million, representing a year over year increase in the range of 14% to 18%; management expects revenue growth in the coming Q2 to be higher than the revenue growth of the Q1, with overseas test-prep revenue growth over 5% year-over-year in dollar terms, new business revenue growth roughly high teens, or is that close to 20% or roughly 20%, high school business roughly 15% top-line growth year over year, college business around 20% or even maybe higher, and East Buy's revenue growth accelerated in Q2. Management expects margin expansion across all business lines in fiscal year 2027, plans to open 10% to 15% in the learning centers for the whole year, roughly 15% for the K-9 business, and expects the K-9 business, the new business, to grow somewhere around 20% year-over-year in the dollar terms; over the next 2 to 3 years, the plan is to drive the margin up step by step.New Oriental Education Tech Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
82
Very Positive
Cash Flow
74
Positive
| Breakdown | May 2026 | May 2025 | May 2024 | May 2023 | May 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.68B | 4.90B | 4.31B | 3.00B | 3.11B |
| Gross Profit | 3.10B | 2.72B | 2.26B | 1.59B | 1.35B |
| EBITDA | 645.55M | 634.44M | 542.03M | 424.84M | -834.02M |
| Net Income | 476.87M | 372.44M | 309.59M | 177.34M | -1.19B |
Balance Sheet | |||||
| Total Assets | 8.79B | 7.81B | 7.53B | 6.39B | 6.03B |
| Cash, Cash Equivalents and Short-Term Investments | 5.29B | 4.58B | 4.78B | 4.00B | 4.19B |
| Total Debt | 848.83M | 803.78M | 662.33M | 458.60M | 680.41M |
| Total Liabilities | 4.47B | 3.85B | 3.48B | 2.58B | 2.24B |
| Stockholders Equity | 3.99B | 3.66B | 3.78B | 3.60B | 3.71B |
Cash Flow | |||||
| Free Cash Flow | 1.03B | 637.38M | 839.25M | 827.96M | -1.43B |
| Operating Cash Flow | 1.03B | 896.59M | 1.12B | 971.01M | -1.28B |
| Investing Cash Flow | -457.70M | -93.43M | -1.15B | -37.41M | 1.17B |
| Financing Cash Flow | -380.15M | -584.97M | -160.44M | -246.87M | -230.86M |
New Oriental Education Tech Technical Analysis
Neutral
57.07
Price Trends
57.21
Positive
53.52
Positive
54.06
Positive
Market Momentum
0.68
Positive
50.10
Neutral
20.15
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EDU, the sentiment is Neutral. The current price of 57.07 is below the 20-day moving average (MA) of 58.19, below the 50-day MA of 57.21, and above the 200-day MA of 54.06, indicating a neutral trend. The MACD of 0.68 indicates Positive momentum. The RSI at 50.10 is Neutral, neither overbought nor oversold. The STOCH value of 20.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EDU.
New Oriental Education Tech Risk Analysis
New Oriental Education Tech disclosed 82 risk factors in its most recent earnings report. New Oriental Education Tech reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
New Oriental Education Tech Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $4.92B | 2.06 | 24.59% | 0.41% | 32.55% | 846.04% | |
77 Outperform | $8.23B | 19.69 | 11.94% | 2.07% | 15.64% | 32.37% | |
75 Outperform | $3.33B | 10.03 | 20.59% | ― | 2.48% | 7.90% | |
63 Neutral | $1.26B | -6.67 | -17.74% | ― | 22.69% | -112.56% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | $604.09M | -18.73 | -26.91% | ― | 24.86% | 48.69% | |
50 Neutral | $2.29B | 93.60 | -8.24% | ― | 10.03% | -27.61% |
* Consumer Defensive Sector Average
EDU
New Oriental Education Tech
57.99
0.72
1.26%
LRN
Stride
79.21
-74.32
-48.41%
TAL
TAL Education Group
10.21
-2.03
-16.58%
GOTU
Gaotu Techedu
2.57
-0.46
-15.18%
DAO
Youdao
19.00
8.18
75.60%
COUR
Coursera
4.75
-4.34
-47.74%
New Oriental Education Tech Corporate Events
New Oriental Schedules Board Meeting to Approve FY2027 Q1 Results and Earnings Call
Oct 13, 2026
New Oriental Education Technology Group Inc. has scheduled a board meeting for October 27, 2026 to review and approve its unaudited financial results for the three months ended August 31, 2026. The company plans to publish these results before U....
New Oriental Publishes FY2026 Annual Report and Audited Results
Sep 22, 2026
New Oriental Education Technology Group Inc. has released its annual report for the fiscal year ended May 31, 2026, fulfilling its obligations as a foreign private issuer under U.S. securities law and as a Hong Kong-listed company. The report, fi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.