Beijing, October 28, 2026 / PRNewswire / -- China's private education service provider, New Oriental Education & Technology Group Co., Ltd. (hereinafter referred to as "the Company" or "New Oriental") ( NYSE : EDU / 9901. SEHK ) today announced its unaudited financial results for the first quarter ending August 31, 2026, which corresponds to the first quarter of New Oriental's 2027 fiscal year.

Financial Summary for the First Fiscal Quarter as of August 31, 2026

• In the first fiscal quarter of fiscal year 2027, net revenue increased by 23.1% year-over-year to $1.8745 billion.
• In the first fiscal quarter of fiscal year 2027, operating profit increased by 20.5% year-on-year to $374.7 million.
• In the first fiscal quarter of fiscal year 2027, New Oriental's net profit increased by 13.5% year-on-year to $273.2 million.

Operation Summary

Yu Minhong, Executive Chairman of New Oriental, stated: "We are delighted to start the fiscal year 2027 with a strong revenue growth of 23.1%, which exceeds our current annual guidance range. The business revenue from exam preparation and consultation services for studying abroad increased by approximately 7.7% year-on-year. In addition, our domestic exam preparation services for adults and college students grew by about 22.3% year-on-year, and our new education business grew by about 24.7% year-on-year. This quarter, our non-academic tutoring courses have reached approximately 60 cities, attracting around 476,000 enrollments; our intelligent learning systems and devices have been implemented in about 60 cities, with approximately 515,000 active paying users. As we enter the new fiscal year, we will continue to deepen the execution of our core strategies, with a focus on continuously improving the quality of teaching and products as the main driving force for growth. We believe that this prudent approach will enable us to create healthy and sustainable value in the long term."

Along with the growth momentum, our efforts in cost optimization and operational efficiency improvement have entered a new phase this year, and significant progress has been made. Our newly established comprehensive customer service platform, 'New Oriental Home', which connects various departments, has served over 1.678 million families in 69 cities by the end of this quarter. The platform has begun to show effects in enhancing customer loyalty and retention rates, as well as improving cross-selling capabilities. We believe that it will further increase the value of customers throughout their lifecycle while reducing overall customer acquisition costs. We will continue to be committed to building a stronger brand and creating lasting value for our customers and shareholders.

Zhou Chenggang, CEO of New Oriental, added: "In this fiscal quarter, we continued to implement a strategy of prudent capacity expansion, maintaining a balance between revenue growth and operational efficiency. Equally important is that AI remains a core priority at our organizational level. This fiscal year, we will continue to make measured investments in AI to enhance the competitiveness of our existing products, develop new AI educational products that can be efficiently commercialized, and more widely apply AI to reduce labor costs and improve operational efficiency, while also providing stronger support for our employees."

In this fiscal quarter, the product portfolio of Dongfang Zhenxuan's own operations has expanded to over 1,000 SPU, and its Douyin channel matrix has grown to include more than 30 specialized accounts. Leveraging the New Oriental Learning Center network, Dongfang Zhenxuan currently has 4 offline experience stores and has established instant retail capabilities, including piloting one-hour delivery services in Beijing and Shanghai. This fiscal year, Dongfang Zhenxuan will advance its multi-channel strategy, accelerate the development of its own products, optimize the operation of App members, and improve supply chain efficiency to support long-term sustainable growth.

Yang Zhihui, Executive President and Chief Financial Officer of New Oriental, stated: "We are pleased to report that both our core education business and the operating profit margin of Dongfang Zhenxuan have seen year-on-year improvements this fiscal quarter, mainly due to enhanced operational efficiency and increased utilization rates of learning centers. At the same time, the rapid growth of Dongfang Zhenxuan and its increasing proportion of total revenue have helped us maintain a stable comprehensive operating profit margin this quarter. We believe this is an expected outcome of our new business expansion efforts, and we continue to be confident in the profit margin trends of each business line independently. This fiscal year, we will continue to firmly implement a strategy for balanced revenue and profit growth, and further deepen cost reduction and efficiency improvement measures in our key business lines. Through these efforts, our goal is to achieve sustainable and healthy growth in the long term, while steadily enhancing our profitability."

2026 Fiscal Year Shareholder Return Update

As part of the shareholder returns for the fiscal year 2026, the company announced a share repurchase plan in October 2025 (the "2026 Repurchase Plan"), which authorized the company to repurchase up to $300 million in American Depository Receipts (ADS) or common shares within the following 12 months. As of October 27, 2026, the company has utilized the full $300 million authorization under the 2026 Repurchase Plan to repurchase approximately 56.2 million common shares from the public market (including the common shares represented by ADS).

2027 Fiscal Year Shareholder Return Update

To implement the arrangements for the fiscal year 2027 as part of the three-year shareholder return plan adopted by the company in July 2025, the company's board of directors previously approved a regular cash dividend and a new share repurchase plan ("2027 Repurchase Plan") in July 2026.

The company announced today that the board of directors has approved a regular cash dividend for the fiscal year 2027 of $0.2 per common share, or $2.0 per ADS, to be distributed in two installments: (i) The first installment of $0.1 per common share, or $1.0 per ADS, will be paid to the holders of common shares and ADS registered as of the close of business on November 18, 2026 (Beijing/Hong Kong time and New York time); (ii) The second installment of $0.1 per common share, or $1.0 per ADS, will be paid to the holders of common shares and ADS whose registration dates will be determined later by the company's board of directors.

The first dividend is expected to be paid to common stockholders around December 1, 2026, and to the holders of ADS around December 4, 2026. The second dividend is anticipated to be paid approximately six months after the date of the first dividend payment. The company will announce further details regarding the registration date and payment date of the second dividend in due course.

The total amount of cash dividends paid for both periods is estimated to be approximately $300 million. For holders of common shares, in order to be eligible for the first dividend payment, all valid share transfer documents along with the relevant stock certificates must be delivered to the company's Hong Kong share transfer registration office, Central Securities Registry Limited, no later than 4:30 p.m. on November 18, 2026 (Beijing/Hong Kong time), for registration. The address is Units 1712-1716, 17th Floor, Hop Ho Centre, 183 Queen's Road East, Wan Chai, Hong Kong. Dividends for holders of ADS shares will be paid through the depository bank and will be subject to the terms of the depository agreement.

According to the 2027 repurchase plan, the company may repurchase up to $200 million of ADS or common shares within the following 12 months after approval by the board of directors. As of October 27, 2026, the company has not yet repurchased any common shares under the 2027 repurchase plan. The repurchases planned by the company may be conducted from time to time through the public market at current market prices, private negotiated transactions, block trades, and/or other methods permitted by law, depending on market conditions and applicable rules and regulations. The company's board of directors will regularly review the share repurchase plan and may authorize adjustments to its terms and scope. The company expects to fund the repurchases with its existing cash balance.

Financial Results for the First Fiscal Quarter as of August 31, 2026

Net Revenue

In the first fiscal quarter of fiscal year 2027, New Oriental recorded net revenue of $1.8745 billion, a year-on-year increase of 23.1%. The growth was mainly driven by the increase in net revenue from the company's new education business, as well as its self-operated products under "Oriental Selection" and live e-commerce business.

Operating costs and expenses

The operating costs and expenses for this quarter amounted to $1.4998 billion, representing a year-on-year increase of 23.7%. The increase was mainly due to the substantial growth in related costs and expenses associated with Dongfang Zhenxuan's own-operated products and live e-commerce business.

• Operating costs increased by 28.1% year-on-year to $817 million.
• Sales and marketing expenses increased by 30.7% year-on-year to $262.2 million.
• General and administrative expenses increased by 12.6% year-on-year to $420.7 million.

Share-based compensation expenses allocated to related operating costs and expenses increased by 31.3% year-on-year in the first fiscal quarter of fiscal year 2027, reaching $30.6 million.

Operating Profit and Operating Margin

Operating profit was $374.7 million, a year-on-year increase of 20.5%. Non-GAAP operating profit, excluding share-based compensation expenses and amortization of intangible assets arising from corporate acquisitions, was $406.8 million, a year-on-year increase of 21.2%.

The operating profit margin for this quarter was 20.0%, compared to 20.4% in the same period last year. Excluding share-based compensation expenses and amortization of intangible assets arising from corporate acquisitions, the operating profit margin under non-U.S. General Accounting Standards was 21.7%, whereas it was 22.0% in the same period last year.

Net profit and per ADS net profit

The net profit attributable to New Oriental for this quarter was $273.2 million, a year-on-year increase of 13.5%. The basic and diluted net profit attributable to each ADS of New Oriental were $1.76 and $1.74 respectively.

Non-GAAP net profit and net profit per ADS

The net profit attributable to New Oriental under non-GAAP (Generally Accepted Accounting Principles) for this quarter was $300.9 million. Excluding share-based compensation expenses, amortization of intangible assets arising from corporate acquisitions, gains/losses on changes in the fair value of investments, gains/losses on equity method investments, and tax effects of non-GAAP adjustments, it increased by 16.5% year-over-year. The basic and diluted net profit attributable to New Oriental under non-GAAP per ADS was $1.94 and $1.92 respectively.

Cash flow

In the first fiscal quarter of fiscal year 2027, the net cash inflow from operating activities was approximately $195.4 million, and capital expenditures for this quarter were $65.8 million.

Balance Sheet

As of August 31, 2026, New Oriental held $1.7546 billion in cash and cash equivalents. In addition, the company had $1.4413 billion in time deposits and $2.4227 billion in short-term investments.

As of the end of the first quarter of the fiscal year 2027, New Oriental's deferred revenue amounted to $2.1211 billion. Deferred revenue represents income that has been collected in advance from customers and will be recognized upon the delivery of services or goods. In contrast, at the end of the first quarter of the fiscal year 2026, deferred revenue was $1.9067 billion, representing a year-over-year increase of 11.2%.

2027 Fiscal Year Outlook

New Oriental confirms its previous guidance for the fiscal year 2027 (from June 1, 2026, to May 31, 2027), with total net revenue expected to range from $6.4539 billion to $6.6803 billion, representing a year-on-year increase of 14% to 18%.

This forecast reflects New Oriental's current preliminary views, and there may be changes in the future. The forecast is based on the current exchange rate between the US dollar and the Chinese yuan, which may also change.

Telephone Conference Arrangement

New Oriental's management will hold a performance conference call at 8 a.m. Eastern Time on October 28, 2026 (8 p.m. Beijing/Hong Kong Time on October 28, 2026).

The company requests that you register for the meeting in advance through the following link. After registration, participants will be provided with a dial-in number and a unique personal PIN code.

Telephone conference registration link:

This link will automatically redirect to the “New Oriental FY2027 Q1 Earnings Conference Call” registration page, where participants can fill in their information to complete the registration.

Within 10 minutes before the meeting starts, participants can use the meeting information provided in their registration confirmation email (including the dial-in number and their personal PIN code) to join the meeting.

In addition, the live webcast and replay of the teleconference can be watched at http :// investor.neworiental.org.

The meeting replay can also be listened to as needed after registering through the following links: https :// edge.media-server.com / mmc /p/ d5kv97n5. The replay is valid until October 28, 2027.

About New Oriental

New Oriental is a private education service provider in China, offering a wide range of educational programs, services, and products to students from various groups across the country. New Oriental's offerings include educational services and exam preparation courses, proprietary products and live e-commerce, study abroad consultation services, as well as educational materials and distribution. New Oriental is listed on the New York Stock Exchange (symbol: NYSE : EDU) and the Hong Kong Stock Exchange (stock code: 9901.SEHK). Each share of ADS represents 10 ordinary shares and is traded on the New York Stock Exchange. The shares listed in Hong Kong are fully interchangeable with those listed on the New York Stock Exchange under the symbol ADS.

For more information, please visit: http :// www.neworiental.org / english /.

Safe Harbor Statement

This announcement contains forward-looking statements. Such statements are made under the ‘Safe Harbor’ provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as ‘will’, ‘expect’, ‘anticipate’, ‘future’, ‘intend’, ‘plan’, ‘believe’, ‘estimate’, etc. Among other things, the outlook for the entire fiscal year 2027, the management’s statements in this announcement, as well as New Oriental’s strategic and operational plans, all contain forward-looking statements. New Oriental may also make written or oral forward-looking statements in reports submitted or provided to the U.S. Securities and Exchange Commission, annual shareholder reports, press releases, and other written materials, or in oral statements made by its executives, directors, or employees to third parties. Statements that are not historical facts, including those regarding New Oriental’s beliefs and expectations, are considered forward-looking statements. Forward-looking statements involve inherent risks and uncertainties.Multiple factors may lead to significant differences between actual results and the content contained in any forward-looking statements, including but not limited to: the company's ability to effectively and efficiently manage existing and new business changes; the ability to execute its business strategy; uncertainties related to the interpretation, implementation, or proposed changes of laws, regulations, and policies governing China's private education industry; the ability to attract students without significantly reducing course fees; the ability to maintain and enhance the "New Oriental" brand; the ability to maintain consistent teaching quality within its school network or consistent service quality within its brand system; the ability to achieve expected benefits from recent and future mergers and acquisitions; the ability to develop and commercialize AI drive products and to achieve the expected efficiency of AI investments; the outcomes of ongoing or potential future litigation or arbitration, including matters related to copyright and other intellectual property; competition in China's private education industry and live e-commerce business; the continued commitment of senior management teams and other key personnel; health epidemics and other pandemics in China; as well as the overall economic situation in China. Further information regarding these and other risks is contained in the company's Form 20-F annual report and other documents submitted to the U.S. Securities and Exchange Commission. Except as required by applicable law, New Oriental assumes no obligation to update any forward-looking statements. All information provided in this press release and its attachments is as of the date of issuance of this press release, and New Oriental assumes no responsibility to update such information except as required by applicable law.

Regarding financial indicators that are not in accordance with Generally Accepted Accounting Principles (GAAP) in the United States

To supplement the consolidated financial results of New Oriental prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP), New Oriental uses the following financial indicators that are defined by the U.S. Securities and Exchange Commission as not in compliance with U.S. GAAP: net profit after excluding share-based compensation expenses, amortization of intangible assets arising from corporate acquisitions, gains/losses on changes in fair value of investments, losses/gains on equity method investments, impairment of long-term investments and goodwill, gains on disposal of investments, and other items, as well as after adjusting for tax effects not in accordance with U.S. GAAP; operating profit after excluding share-based compensation expenses, amortization of intangible assets arising from corporate acquisitions, and impairment of goodwill; operating profit margin after excluding share-based compensation expenses, amortization of intangible assets arising from corporate acquisitions, and impairment of goodwill; and basic and diluted earnings per share after excluding share-based compensation expenses, amortization of intangible assets arising from corporate acquisitions, gains/losses on changes in fair value of investments, losses/gains on equity method investments, impairment of long-term investments and goodwill, gains on disposal of investments, and other items, as well as after adjusting for tax effects not in accordance with U.S. GAAP; and basic and diluted net profit per ADS.

The company stated that presenting these financial indicators that are not in accordance with Generally Accepted Accounting Principles (GAAP) in the United States is not intended to isolate them or to replace the financial information prepared and presented in accordance with U.S. GAAP. For more information regarding these non-U.S. GAAP financial indicators, please refer to the table at the end of this press release titled “Non-U.S. GAAP Indicators and Adjustments to the Most Comparable U.S. GAAP Indicators.”

New Oriental states that these non-GAAP financial indicators provide meaningful supplementary information regarding its performance and liquidity by excluding certain items that may not reflect operational performance from a cash perspective. New Oriental believes that both management and investors can benefit from referring to these non-GAAP financial indicators when assessing the company's performance, as well as when planning and forecasting for future periods. These indicators also assist management in making internal comparisons between New Oriental's current performance and liquidity with its historical performance and liquidity. New Oriental believes that these indicators help investors gain a more transparent understanding of the supplementary information used by management in its financial and operational decisions. The limitation of using these non-GAAP indicators is that they exclude certain items that have already constituted significant recurring expenses for the company's operations and will continue to do so in the foreseeable future. Management compensates for this limitation by providing specific information on the amounts under GAAP that are excluded by each non-GAAP indicator. The attached tables provide further details on the adjustments between these indicators and the most directly comparable GAAP financial indicators.

Contact Information

For inquiries from investors and the media, please contact:

Ms. Rita Fong

Ms. Sisi Zhao