TAL Education Group (TALN) Q2 2027 Earnings Report
MX:TALN Q2 2027 EPS Results
- Actual EPS
- -MXN 1.13
- Consensus EPS
- MXN 3.34
- Beat/Miss
- Missed by -MXN 4.47
- One Year Ago EPS
- MXN 4.51
MX:TALN Q2 2027 Revenue Results
- Actual Revenue
- MXN 18.73B
- Expected Revenue
- MXN 20.40B
- Beat/Miss
- Missed by -MXN 1.67B
- YoY Revenue Growth
- +15.48%
Earnings Announcement Details
- Quarter
- Q2 2027
- Date
- 10/29/2026
- Time
- Before Open
- Conference Call
- Thursday, October 29, 2026
TAL Education Group's next earnings date is estimated for January 21, 2027, based on past reporting schedules.
Q2 2027 Earnings Call Audio
Q2 2027 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2027 Earnings Call Summary
The call was overall positive. TAL reported continued revenue growth, strong Peiyou offline performance, improved gross and operating margins, lower selling and marketing expenses, stable Learning Device engagement, substantial liquidity, and expanded shareholder returns. These positives were partly offset by moderating overall and online enrichment growth, a contracted and highly competitive Learning Device market, higher component costs, negative operating cash flow, increased tax expense, investment fair-value volatility, and a non-GAAP net loss.
Management expects overall revenue growth to moderate and growth to become more moderate going forward as the business grows in scale and the Learning Device business continues to face industry headwinds; Peiyou offline programs are expected to continue performing well with double-digit revenue growth, while Learning Devices are expected to continue to weigh on the company's overall revenue growth rate. The company does not anticipate significant losses from this Learning Device business for the full fiscal year, expects its operating margin for fiscal 2027 to improve compared with fiscal 2026, and said profitability may vary from quarter to quarter due to seasonality, market conditions, and the timing of investments.
- Revenue Growth Continued in the Second QuarterSecond-quarter net revenues were $995 million, or CNY 6.7 billion, representing a year-over-year increase of 15% in U.S. dollar terms and 9% in RMB terms.
- Significant Operating Income and Margin ImprovementNon-GAAP income from operations was $248 million, representing a year-over-year increase of more than 100%, compared with $108 million in the same period last year. Non-GAAP operating margin increased to 24.9% from 12.5%, reflecting operating leverage, efficiency gains, and disciplined resource allocation.
- Peiyou Offline Programs Delivered Double-Digit GrowthPeiyou offline program revenue grew by double digits year-over-year, with enrollment growth as the largest contributor. Demand for face-to-face learning remained steady, and the overall retention rate remained healthy; retention for Peiyou enrichment learning classes was over 80%.
- Continued Focus on Teaching Quality and Learning Center ExecutionDuring the summer, TAL's learning center network was well-positioned to serve students and families. The company continued to focus on teaching quality, teacher development, consistency of services across learning centers, and disciplined network management.
- Online Enrichment Programs Expanded Hands-On LearningTAL continued developing online learning experiences that respond to students' interests and needs. Science-related courses combined online learning with hands-on activities, and the company launched its first National Youth Maker Show to encourage students to develop ideas and turn them into practical projects.
- Learning Device User Engagement Remained StableDespite pressure in the Learning Device market, user engagement remained stable during the quarter. The average weekly active rate across the learning device user base was around 80%, and active devices were used for an average of one hour per day.
- Learning Devices Remain a Strategic Investment AreaManagement said Learning Devices continue to have a strategic role in supporting students' independent learning at home. TAL plans to continue investing in content, technology, and product experience while managing the business in a disciplined way, and does not anticipate significant losses from the Learning Device business for the full fiscal year.
- Gross Profit and Gross Margin IncreasedGross profit increased by 21% year-over-year to $595 million. Gross margin was 59.8% in the second quarter of fiscal 2027, compared with 57.0% in the same period of the prior year.
- Selling and Marketing Efficiency ImprovedNon-GAAP selling and marketing expenses decreased by 16% to $223 million from $264 million in the second quarter of fiscal 2026. Non-GAAP general and administrative expenses increased by 4% to $124 million from $119 million.
- Strong Liquidity and Deferred Revenue PositionAs of August 31, 2026, TAL had approximately $2.0 billion of cash and cash equivalents, $796 million of short-term investments, and $254 million in current and non-current restricted cash. Deferred revenue was approximately $930 million.
- Shareholder Returns ExpandedBetween July 29, 2026, and October 23, 2026, TAL repurchased approximately 64,226 common shares for an aggregate consideration of approximately $2 million. The board also approved a special cash dividend of $0.30 per common share, equivalent to $0.10 per ADS, representing an aggregate payment of approximately $55.2 million. Management said shareholder returns will become a more systematic part of capital allocation through dividends and share repurchases.
- Fiscal 2027 Operating Margin Expected to ImproveManagement said improving profitability remains a priority and expects fiscal 2027 operating margin to improve compared with fiscal 2026, while noting that profitability may vary from quarter to quarter due to seasonality, market conditions, and the timing of investments.
MX:TALN Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Jan 21, 2027 | 2027 (Q3) | 1.65- | 4.7 | ― | ― |
| Oct 29, 2026 | 2027 (Q2) | 3.34-1.13 | 4.51 | -125.00% (-5.64) | |
| Jul 30, 2026 | 2027 (Q1) | 5.3914.09 | 1.32 | 971.43% (+12.78) | |
| Apr 23, 2026 | 2026 (Q4) | 2.728.46 | -0.19 | 4600.00% (+8.64) | |
| Jan 29, 2026 | 2026 (Q3) | 1.264.70 | 0.75 | 525.00% (+3.95) | |
| Oct 30, 2025 | 2026 (Q2) | 3.084.51 | 2.26 | 100.00% (+2.26) | |
| Jul 31, 2025 | 2026 (Q1) | 1.371.32 | 0.38 | 250.00% (+0.94) | |
| Apr 24, 2025 | 2025 (Q4) | 1.41-0.19 | 0.75 | -125.00% (-0.94) | |
| Jan 23, 2025 | 2025 (Q3) | 0.320.75 | -0.75 | 200.00% (+1.50) | |
| Oct 24, 2024 | 2025 (Q2) | 1.372.26 | 1.13 | 100.00% (+1.13) |
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.
