NEW ORIENTAL EDUCATIO-SP ADR (NYSE:EDU) reported its fiscal second-quarter 2026 results, delivering a decisive top and bottom-line beat against analyst expectations. The strong performance has triggered a significant positive reaction in pre-market trading.
Earnings Snapshot: A Clear Beat
For the quarter ended November 30, 2025, New Oriental posted results that comfortably exceeded consensus estimates. The company's strategic pivot towards diversified educational services and its livestreaming e-commerce arm, East Buy, continue to bear fruit.
- Revenue: Reported revenue of $1.19 billion, surpassing the analyst estimate of approximately $1.17 billion.
- Earnings Per Share (Non-GAAP): Reported $0.45 per share, significantly higher than the estimated $0.34 per share.
This dual beat indicates not only robust sales growth but also effective cost management and operational efficiency during the period.
Market Reaction: Positive Momentum
The market's immediate response to the earnings report has been strongly favorable. In pre-market trading, the stock is indicating an opening gain of approximately 5.4%. This surge suggests investors are rewarding the company for its outperformance and the positive momentum it has demonstrated. Over recent weeks, the stock had been relatively flat, with a slight gain of about 0.4% over the past month, making today's pre-market jump a notable breakout.
Looking Ahead: Analyst Estimates for Future Quarters
While the press release summary does not provide a specific company outlook for future periods, current analyst estimates offer a benchmark for future performance. The consensus view anticipates continued strength, though with some sequential moderation typical for the company's fiscal calendar.
- For Q3 Fiscal 2026 (ending February 2026): Analysts expect revenue of $1.35 billion and EPS of $0.86.
- For the Full Fiscal Year 2026: The consensus estimates project revenue of $5.44 billion and EPS of $3.51.
The company's ability to meet or exceed these forward-looking estimates will be a key driver of its stock performance in the coming quarters.
Press Release Summary
The announced results for Q2 Fiscal 2026 underscore New Oriental's successful transformation and business resilience. The company continues to leverage its core educational services—including test preparation, online education, and overseas study consulting—while its foray into livestreaming e-commerce through East Buy has evolved into a substantial and profitable segment. This diversified model appears to be effectively navigating the post-regulatory environment in China's education sector.
For a detailed breakdown of historical earnings, future estimates, and analyst revisions, you can review the full data here.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation to buy or sell any security, or an endorsement of any investment strategy. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
