New Oriental Education & Technology Group (EDU) Is Up 13.5% After Upbeat Q2 Results, Guidance And Buyback – Has The Bull Case Changed?

• New Oriental Education & Technology Group recently reported past second-quarter fiscal 2026 results showing higher sales and net income, issued revenue guidance projecting further year-over-year growth for the third quarter and full year, and completed a US$86.3 million repurchase of 1,600,000 shares representing 1.01% of its share base.
• The combination of improving profitability, management’s outlook for continued revenue expansion, and capital returned through completed buybacks highlights how the company is balancing growth investment with shareholder returns.
• We will now examine how New Oriental’s upbeat revenue guidance and recent performance shape the company’s broader investment narrative for investors.

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What Is New Oriental Education & Technology Group's Investment Narrative?

For someone considering New Oriental, the core belief is that its refocused education and services platform can keep generating steady revenue and earnings while operating within China’s evolving regulatory setting. The latest quarter’s higher sales and net income, combined with double‑digit revenue guidance for both the third quarter and full fiscal 2026, reinforces near term momentum in the business and supports existing revenue growth expectations. The completed US$86.3 million buyback on 1.01% of shares also adds a clearer capital return element to the story, on top of dividends. That said, the recent share price jump suggests much of this upbeat news may already be reflected in the stock, so it does not remove key risks around regulatory changes, capital allocation decisions and relatively high earnings multiples.

However, one risk investors should be aware of sits outside the latest earnings headlines. New Oriental Education & Technology Group's shares have been on the rise but are still potentially undervalued by 7%. Find out what it's worth.

Exploring Other Perspectives

The Simply Wall St Community’s four fair value views span roughly US$38.90 to US$68.53, underscoring how far opinions can differ. Set against New Oriental’s stronger guidance and ongoing regulatory and valuation risks, this spread invites you to weigh multiple viewpoints on what the recent update might really mean for future performance.

Explore 4 other fair value estimates on New Oriental Education & Technology Group - why the stock might be worth 39% less than the current price!

Build Your Own New Oriental Education & Technology Group Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your New Oriental Education & Technology Group research is our analysis highlighting 2 key rewards that could impact your investment decision.
• Our free New Oriental Education & Technology Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate New Oriental Education & Technology Group's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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