New Oriental’s revenue rises 23% in May quarter, but adjusted profit declines
Education services company New Oriental Education & Technology Group Inc. (EDU.US; 9901.HK) on Wednesday reported its revenue rose 23% in the three months through May, as it emerged from a difficult transition after a government ban of its original K-12 tutoring business.
New Oriental said its net revenue rose to $1.53 billion during the three months to May 31, the fourth quarter of its fiscal year, from $1.24 billion a year earlier. Revenues from its overseas test preparation and consulting business rose 3.6% year-on-year, while its domestic test preparation business targeting adults rose 29.1%. Its new educational initiatives rose 24.8%.
The company forecast it would generate $6.45 billion to $6.68 billion in revenue for its current fiscal year that runs through May 31, 2027, up 14% to 18% from the previous year.
New Oriental earned a profit of $62.2 million in the quarter through May this year, up more than eightfold from $7.1 million a year earlier. Excluding a $60.3 million goodwill impairment in its fiscal year through May 2025 and other adjustments, the company reported non-GAAP net income of $87.8 million in its fiscal year through May 2026, down 10.5% from the previous year.
New Oriental’s New York-listed shares rose 15.3% to close at $58.58 on Wednesday after the announcement. The stock is up 5.2% this year.
By Doug Young
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