New Oriental reports 23% Q4 revenue growth, approves FY2027 shareholder returns
China's education services provider beat revenue expectations, guided FY2027 growth of 14% to 18%, approved a $500 million dividend and buyback plan, and drew higher analyst targets after the results.
New Oriental Education & Technology Group reported fiscal fourth-quarter 2026 revenue of $1.53 billion, up 23% year over year and above its own 15% to 18% growth guidance, while operating income swung to a profit of $85.8 million from a loss of $8.7 million. Net income attributable to shareholders rose 775.8% to $62.2 million. For fiscal 2027, the company forecast revenue of $6.45 billion to $6.68 billion, implying growth of about 14% to 18% and topping market expectations. The board also approved a FY2027 shareholder return package of about $300 million in cash dividends and a new 12-month share repurchase authorization of up to $200 million. Following the results, New Oriental's Hong Kong-listed shares rose as much as 18.19% and closed up 18.19% at HK$47.18 on July 30 after Goldman Sachs raised its target price to HK$55 from HK$50 and maintained a Buy rating; Goldman also raised its U.S.-listed target to $70 from $65. Citi reiterated Buy with a $75 target, while Morgan Stanley kept Equal-weight with a $58 target.
- ADS: American depositary share representing foreign stock listed in the U.S.
- Non-GAAP: Adjusted financial measures that exclude selected accounting or one-off items
- Share repurchase: A company buyback of its own shares, typically used to return capital to shareholders