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New Oriental Education & Technology Group Inc

New Oriental Education & Technology Group Inc

EDU
$49.15USD↓-0.57%-0.28 today

MARKET CAP

8.2B

P/E (TTM)

13.4x

FWD P/E

12.0x

DAY RANGE

$49 – $50

52W RANGE

$41
$64

AI Summary

Stalk
Buy NowMedium

Early-stage stabilization after a terminal decline shows repaired EMA regime and active higher-highs/lower-lows, establishing a base with demand dominance. Medium-term asymmetry is bullish, supported by the continuation pattern and moderate Stage 1→2 transition risk. Short-term timing favors buying pullbacks into rising 9/21 EMAs at support confluence. Enter now to participate ahead of a potential breakout.

  • ↑Revenue rose 19.8% YoY to $1.42B in Q3 FY26
  • ↑Non-GAAP operating income surged 42.8%, boosting margins
  • ↓Negative earnings yield and weak profitability raise sustainability concerns
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The case for & against

Bull & Bear analysis

Bullish

New Oriental Education & Technology Group Inc. (NYSE: EDU) is a leading provider of private educational services in China, focusing on tutoring programs, test preparation, language training, and the integration of intelligent learning systems. With an emphasis on adapting to the shifting landscape of education in China, the company has demonstrated a resilient focus on diversifying its revenue streams and incorporating technology such as AI into its offerings. The company is strategically positioned within the educational value chain, targeting high-demand segments and engaging with families to enhance educational experiences amidst a competitive market.

Bull says

  • ↑Revenue rose 19.8% YoY to $1.42B in Q3 FY26
  • ↑Non-GAAP operating income surged 42.8%, boosting margins
  • ↑AI integration to enhance offerings, retention and efficiency
  • ↑$300M share repurchase highlights strong cash generation
  • ↑Analysts' consensus 'Moderate Buy' after K-12 pivot
  • ↑High dividend yield and positive momentum signal stability

Bear says

  • ↓Negative earnings yield and weak profitability raise sustainability concerns
  • ↓Cost of revenue jumped 23.4%, risking margin compression
  • ↓Intense K-12 competition and low-cost entrants pressure enrollments
  • ↓Overseas test-prep growth stalled in low single digits
  • ↓Short interest up 45%, reflecting rising investor skepticism
  • ↓Elevated leverage risk and strained liquidity may pressure operations

Earnings Call · Q3 2026 · Mgmt. Guidance

Updated 04-23-2026neutral

Transcript signals

Bull points

  • AI technology into all key business lines, enhancing students' learning experience and improving the learning efficiency of our customers.
  • we have already seen certain business labor costs reduced or labor hours decreased as a result of implementing AI technology into our daily processes, which benefits the overall efficiency of our operations.
  • Teachers are saving more time which improves the utilization of our teachers.

Bear points

  • Net cash outflow generated from operation for the third quarter of fiscal year 2026 was approximately $7.5 million,
  • Net cash outflow generated from operation for the third quarter of fiscal year 2026 was approximately $7.5 million,
  • I think the one-off expenses, you know, what I said is I think majority of the one-off expenses will be high-banding to Q4.
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