New Oriental Education & Technology Group Inc (NYSE:EDU) reported financial results for the first quarter of its 2026 fiscal year, a period that concluded on August 31, 2025. The company's performance against analyst expectations and the subsequent market reaction are the focal points for investors following the earnings release.
First Quarter Fiscal 2026 Financial Results
The company's reported revenue for the quarter was $1.52 billion, which came in slightly below the analyst consensus estimate of $1.53 billion. On the bottom line, the non-GAAP earnings per share (EPS) of $1.61 also fell short of the $1.67 per share that analysts had projected.
- Reported Revenue: $1.52 billion
- Estimated Revenue: $1.53 billion
- Reported Non-GAAP EPS: $1.61
- Estimated Non-GAAP EPS: $1.67
While the revenue miss was marginal, the earnings per share falling short of expectations appears to be the primary driver behind the negative sentiment in early trading.
Market Reaction and Price Action
The immediate market response to the earnings report was decisively negative. In pre-market trading, the stock was down approximately 7.25%, indicating investor disappointment with the quarterly results, particularly the earnings miss. This sharp decline contrasts with the stock's recent performance, which had been positive over the past several weeks.
- Pre-Market Performance: -7.25%
- Last Month's Performance: +13.04%
- Last Two Weeks' Performance: +14.99%
The significant pre-market drop suggests a repricing of the stock as investors digest the quarterly figures, effectively erasing a portion of the gains accrued over the previous month.
Press Release Summary and Corporate Developments
Beyond the core financial metrics, the company's press release announced two significant capital allocation decisions. New Oriental declared a cash dividend for shareholders, underscoring a commitment to returning capital. More notably, the company announced a new share repurchase program. Such a program is often viewed as a signal of management's confidence in the company's long-term value and a method to offset earnings per share dilution.
Forward-Looking Estimates and Outlook
The provided press release did not include a specific financial outlook from the company's management for the upcoming quarters or the full 2026 fiscal year. In the absence of company-provided guidance, investor attention will turn to the prevailing analyst estimates. For the current quarter, Q2 of fiscal 2026, analysts are forecasting revenue of $1.17 billion. For the full 2026 fiscal year, the revenue estimate stands at $5.39 billion. The market will be watching closely to see if New Oriental can meet or exceed these benchmarks in its future reports, especially given the slight revenue underperformance this quarter.
Conclusion
New Oriental's first-quarter results presented a mixed but ultimately disappointing picture for the market, as evidenced by the sharp pre-market decline. The company met expectations on the top line but fell short on profitability. The announcement of a dividend and a share buyback program provides a longer-term positive context, but it was not enough to offset the immediate reaction to the earnings miss. The lack of formal guidance from the company leaves analysts' projections as the key benchmark for future performance.
For a detailed look at historical earnings and future analyst estimates for New Oriental Education & Technology Group Inc (NYSE:EDU), you can review the data here.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation, or an offer or solicitation to buy or sell any securities. The content presented is based on data believed to be reliable, but its accuracy cannot be guaranteed. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
