The strong Q4 beat and FY2027 guidance of 14-18% revenue growth, combined with a $500M capital return plan ($300M dividend + $200M buyback), signal robust operational momentum and management confidence. Traders should watch for the earnings call for color on restructuring costs and East Buy's trajectory; the stock may re-rate higher if the market focuses on GAAP profitability and guidance rather than the Non-GAAP net income decline.
Price Chart
Executive Summary
New Oriental reported strong Q4 FY2026 results with net revenues up 23.0% YoY to $1,529.5M and operating income swinging to $85.8M from a loss of $8.7M. GAAP net income surged 775.8% to $62.2M, but Non-GAAP net income fell 10.5% to $87.8M due to one-time restructuring costs. The company guided FY2027 revenue growth of 14-18% and announced a ~$300M dividend and $200M buyback for FY2027, reinforcing capital return.
Key Facts
- Q4 FY2026 net revenues of $1,529.5M, up 23.0% YoY
- Operating income of $85.8M vs. operating loss of $8.7M in prior-year period
- GAAP net income attributable to New Oriental of $62.2M, up 775.8% YoY
- Non-GAAP net income attributable to New Oriental of $87.8M, down 10.5% YoY
- FY2027 revenue guidance of $6,453.9M to $6,680.3M, representing 14% to 18% YoY growth
- Board approved ~$300M ordinary cash dividend for FY2027, payable in two installments
- New $200M share repurchase program authorized for FY2027
- As of July 28, 2026, $274.0M of the prior $300M buyback had been executed
- Non-GAAP operating margin expanded 60 bps YoY to 7.2% in Q4; full-year margin expanded 170 bps to 13.0%
- Net operating cash flow of $518.7M in Q4; cash and equivalents of $1,821.2M plus $2,372.3M in short-term investments
Financial Impact
Q4 revenue beat with 23% YoY growth; GAAP net income up 775.8% but Non-GAAP net income down 10.5% due to restructuring costs; FY2027 guidance implies 14-18% revenue growth; $500M total capital return ($300M dividend + $200M buyback) for FY2027
Risk Factors
- Non-GAAP net income declined 10.5% YoY due to one-time restructuring costs, which may concern some investors
- FY2027 guidance is preliminary and subject to USD/RMB exchange rate fluctuations
- China regulatory environment for private education remains uncertain
- East Buy's e-commerce business faces competitive pressure and execution risk
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001193125-26-322173 |
| Document: d148153d6k.htm | 0001193125-26-322173 |
| Document: 0001193125-26-322173-index-headers.html | 0001193125-26-322173 |
| Document: 0001193125-26-322173-index.html | 0001193125-26-322173 |
| Document: 0001193125-26-322173.txt | 0001193125-26-322173 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 11, 2026 7w ago | Insider Cluster | $55.55 $55.49 | ▼ −0.11% | ▲ +0.95% | $55.44 (−0.20%) |
Jul 29, 2026 9w ago | 6-K | $58.58 $57.72 | ▼ −1.47% | ▼ −6.49% | $55.44 (−5.36%) |
Jul 7, 2026 12w ago | 6-K | $47.81 $59.06 | ▲ +23.53% | ▲ +22.20% | $55.44 (+15.96%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Try SecBot Free Coming soon: SecBot Pro with alerts, watchlists, and API access