New Oriental-S (09901) announced annual results, net profit attributable to shareholders of US$475 million, an increase of 27.8% year-on-year

According to the Zhitong Finance App, New Oriental-S (09901) announced results for the fourth quarter ended May 31, 2026. Net revenue increased 23.0% year over year to US$1,529.5 billion, operating profit increased 10089.1% year over year to US$85.8 million, and net profit attributable to shareholders increased 775.8% year over year to US$62.2 million.

Net revenue for the fiscal year ended May 31, 2026 was approximately US$5.661 billion, an increase of 15.5% over the previous year. Operating profit was approximately US$643 million, up 50.2% year over year. Net profit attributable to shareholders was US$475 million, an increase of 27.8% over the previous year.

Yu Minhong, Executive Chairman of the Board of Directors of New Oriental, said, “We are pleased to summarize our strong performance in the last quarter of FY2026. Revenue grew by about 23.0% and maintained steady growth. Revenue from the overseas exam preparation and overseas consulting business increased by about 3.6%. Furthermore, the domestic exam preparation business for adults and university students increased by about 29.1% year over year. Our new education business has also made significant progress, with a year-on-year increase of approximately 24.8%. This quarter, our non-subject tutoring business courses covered about 60 cities and attracted about 1,072,000 students to sign up; while our smart learning systems and devices were adopted in about 60 cities, with around 326,000 active paid users. These results reflect the robustness of our core education strategies and our strong commitment to improving teaching standards and product quality. The continued growth we have achieved validates our long-term strategy and demonstrated its ability to create sustainable value. While maintaining our growth momentum, we have made significant progress in optimizing costs and improving operational efficiency, while advancing related initiatives into a new phase. Our newly established New Oriental Home — an integrated customer service platform across all departments — served more than 950,000 families in 69 cities at the end of the quarter. The platform aims to deepen customer loyalty and retention, tap cross-selling potential, maximize customer lifetime value, and effectively reduce customer acquisition and marketing costs. We remain committed to strengthening our brand and continuing to create long-term value for our customers and shareholders.”

Zhou Chenggang, CEO of New Oriental, said, “This fiscal season, we continued to pursue a rigorous capacity expansion strategy. Throughout the year, this strategy has shown outstanding results in balancing revenue growth with operational efficiency. At the same time, artificial intelligence has become a core priority at our organizational level, and we are driving its implementation with clear execution paths and quantifiable progress. We are further strengthening the OMO teaching system and deepening the integration of artificial intelligence in the education ecosystem — embedding artificial intelligence into existing products and services, continuously refining AI-driven products, and deploying artificial intelligence to improve operational efficiency and support teaching teams. Together, these measures have strengthened our competitive position over the long term. In the 2026 fiscal year, Oriental Selection continues to adhere to the “three highest” standards — safety, quality and cost performance — and is backed by reliable service. Oriental Selection launched 11 new vertical accounts on the Douyin platform, expanding the channel matrix to 18, covering food, fresh food, nutrition and more segments. In addition, Dongfang Selection upgraded its live streaming system and launched a talent recruitment program, supplier conferences, and user feedback mechanisms to continue to strengthen its ecosystem. Looking ahead to the 2027 fiscal year, Oriental Selection will use the New Oriental Learning Center to expand offline experience stores, accelerate self-operated brand development, optimize membership system operations, improve supply chain efficiency, and make every effort to promote sustainable long-term growth.”

Yang Zhihui, Executive President and Chief Financial Officer of New Oriental, stated, “Despite one-time costs and expenses due to internal management restructuring this quarter, we achieved a year-on-year increase in non-GAAP operating profit margins. This achievement is mainly due to improved operational efficiency, improved utilization of the education business, and the steady revenue and profit performance of Oriental Selection. The non-GAAP operating margin reached 7.2% this quarter, up 60 basis points from the same period last year. In FY2026, NongAAP's operating margin increased by 170 basis points, from 11.3% to 13.0%. Looking ahead, we will continue to promote cost control and efficiency improvement initiatives for each core business line in the new fiscal year. Based on existing structural optimizations, we are committed to steadily reducing fixed costs and further improving operational efficiency to consolidate a solid foundation for sustainable profitable growth.”

Furthermore, New Oriental expects net revenue for fiscal year 2027 (June 1, 2026 to May 31, 2027) to be between US$6.54 billion and US$6.68 billion, with a year-on-year increase of 14% to 18%.