New Oriental Education Tech (EDUN) Q1 2027 Earnings Report
MX:EDUN Q1 2027 EPS Results
- Actual EPS
- MXN 36.25
- Consensus EPS
- MXN 34.18
- Beat/Miss
- Beat by +MXN 2.08
- One Year Ago EPS
- MXN 30.40
MX:EDUN Q1 2027 Revenue Results
- Actual Revenue
- MXN 35.46B
- Expected Revenue
- MXN 34.97B
- Beat/Miss
- Beat by +MXN 491.96M
- YoY Revenue Growth
- +23.08%
Earnings Announcement Details
- Quarter
- Q1 2027
- Date
- 10/28/2026
- Time
- Before Open
- Conference Call
- Wednesday, October 28, 2026
MX:EDUN Upcoming Earnings
New Oriental Education Tech's next earnings date is estimated for January 21, 2027, based on past reporting schedules.
Q1 2027 Earnings Call Audio
MX:EDUN Q1 2027 Earnings Call
0:00 / 0:00
Q1 2027 Earnings Slide Deck
No slide deck is available for this earnings event.
Q1 2027 Earnings Call Summary
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.
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.
- Revenue and Non-GAAP Operating Income GrowthTotal 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.
- Operating Margin Expansion Across Core BusinessesThe core education business and East Buy both recorded year-over-year operating margin expansion, primarily attributable to enhanced operational efficiency and improved utilization of learning centers. Management expects margins across all business lines to expand in fiscal year 2027.
- Core Business and New Initiative GrowthOverseas test-prep revenue increased about 8% year over year, overseas study consulting revenue increased about 7%, and the adults and university students business grew 22% year over year. New educational business initiatives delivered 25% year-over-year revenue growth in the quarter.
- Positive Full-Year Business-Line Growth OutlookManagement expects fiscal year 2027 overseas test-prep revenue growth to be over 5% year over year in dollar terms, new business revenue growth to be roughly high teens or close to 20%, high school top-line growth of roughly 15%, and college business growth of around 20% or even higher.
- Non-Academic Tutoring and Intelligent Learning ExpansionNon-academic tutoring has been rolled out to around 60 existing cities, with steady market penetration and the top 10 cities contributing over around 60% of the business. The intelligent learning system and device business has also launched in around 60 cities, with continued enhancement in customer retention and scalability; the top 10 cities contribute around 50% of the business.
- Integrated Tourism Platform ExpansionThe integrated tourism business operates student programs in about 55 cities across China, with the top 10 cities generating over 50% of revenue. Premium add-on offerings cover around 30 provinces in China and selected international destinations, while the senior health and wellness tourism initiative partners with more than 65 wellness facilities through an asset-light model.
- Continued OMO and AI InvestmentNew Oriental invested $28.2 million during the quarter to improve and maintain its OMO teaching platform. The company continues to invest in a proprietary AI-powered personalized learning platform, and its first phase of deployment generated meaningful sales within just 25 days of launch.
- East Buy Rapid Growth and Product ExpansionManagement reported rapid growth at East Buy in the first quarter and expects East Buy revenue growth to accelerate in the second quarter. East Buy's private-label lineup has grown beyond 1 thousand SKUs across food, nutrition and health, apparel, skincare, and other categories, with several flagship products delivering robust sales.
- East Buy Margin Improvement and Channel DevelopmentEast Buy's non-GAAP operating margin and non-GAAP net margin expanded in the first quarter. The addition of professional livestreamers and operational specialists strengthened content capabilities, while new vertical accounts on Douyin expanded the channel matrix to over 30 channels.
- East Buy Offline and Instant Retail InitiativesEast Buy currently has 4 offline experience stores and is advancing its campus store rollout. It has also developed instant retail capabilities, with front warehouses in place and a 1-hour delivery trial underway in Beijing and Shanghai.
- New Oriental Home User GrowthNew Oriental Home has been launched across 69 cities and had over 1.68 million registered families by the end of the quarter. More than half of registered users proactively redeemed points across 10 learning and family-oriented offerings.
- New Oriental Home Engagement and Cross-Selling PotentialNew Oriental Home achieved cumulative activity participant rates of over 90%, while the campaign activation rate for the quarter reached 33%. Management stated that the platform supports cross-selling among education, East Buy, and tourism offerings and helps reduce customer acquisition cost.
- Improved Financial ResultsOperating income increased 20.5% year over year to $374.7 million. Net income attributable to New Oriental rose 13.5% to $273.2 million, while non-GAAP net income attributable to New Oriental was reported at $3.3 thousand million, up 16.5% year over year. Basic and diluted net income per ADS were $1.76 and $1.74, respectively, and non-GAAP basic and diluted net income per ADS were $1.94 and $1.92.
- Strong Liquidity and Deferred RevenueAs of August 31, 2026, New Oriental had $1.75 thousand million in cash and cash equivalents, $1.44 thousand million in term deposits, and $2.42 thousand million in short-term investments. Deferred revenue increased 11.2% year over year to $2.12 thousand million.
- Learning Center Capacity ExpansionThe company added 2% net new capacity in the first quarter on a quarter-over-quarter basis and plans to open 10% to 15% more learning centers for the full year, primarily in existing cities, with some expansion into new cities. Management expects improved student retention and utilization rates to support the expansion.
- Positive Outlook for Utilization and Cost ControlManagement expects higher learning-center utilization, operating leverage, and continued cost control to improve the margin profile. The company stated that cost control initiatives started in March 2025 have produced good results and will continue.
- Fiscal Year 2027 Revenue Guidance ReiteratedNew Oriental reiterated fiscal year 2027 total net revenue guidance of $6.45 thousand million to $6.68 thousand million, representing year-over-year growth of 14% to 18%.
- Shareholder ReturnsThe company stated that it had fully utilized the $300 million repurchase amount authorized under its 2026 share repurchase program, covering approximately 56.2 million common shares including shares represented by ADS. For fiscal year 2027, the board approved an aggregate cash dividend of approximately $300 million, equal to $0.2 per common share or $2.00 per ADS, and authorized a new share repurchase program of up to $200 million over the subsequent 12 months.
- Commitment to Compliance and Sustainable ProfitabilityManagement reiterated its focus on service quality, sustainable profitability, cost discipline, strategic capacity expansion, and talent development, while continuing to collaborate with government authorities across China to comply with relevant policies and regulations.
MX:EDUN Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Jan 21, 2027 | 2027 (Q2) | 10.31- | 8.5 | ― | ― |
| Oct 28, 2026 | 2027 (Q1) | 34.1836.25 | 30.4 | 19.25% (+5.85) | |
| Jul 29, 2026 | 2026 (Q4) | 12.5210.39 | 11.52 | -9.84% (-1.13) | |
| Apr 22, 2026 | 2026 (Q3) | 15.9617.94 | 13.22 | 35.71% (+4.72) | |
| Jan 28, 2026 | 2026 (Q2) | 6.468.50 | 4.15 | 104.55% (+4.34) | |
| Oct 28, 2025 | 2026 (Q1) | 28.3230.40 | 30.21 | 0.63% (+0.19) | |
| Jul 30, 2025 | 2025 (Q4) | 7.2111.52 | 4.15 | 177.27% (+7.36) | |
| Apr 23, 2025 | 2025 (Q3) | 13.8613.22 | 11.9 | 11.11% (+1.32) | |
| Jan 21, 2025 | 2025 (Q2) | 5.664.15 | 0.57 | 633.33% (+3.59) | |
| Oct 23, 2024 | 2025 (Q1) | 27.6630.21 | 21.34 | 41.59% (+8.87) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed