New Oriental Education & Technology Group Inc. (EDU) AI Stock Analysis

New Oriental Education & Technology Group Inc. provides private educational services across China. Its operations encompass Educational Services and Test Preparation Courses, Online Education, Overseas Study Consulting Services, and Others. The company offers test preparation courses for language and entrance examinations required by institutions in the United States, Commonwealth countries, and China. In addition, New Oriental provides non-academic tutoring courses using intelligent learning systems. Its Koolearn.com platform delivers online learning courses tailored for college students and working professionals. The organization maintains a national footprint encompassing 107 schools, 637 learning centers, and nine bookstores across China.

New Oriental recovered from FY2022 revenue of $3.11B and a net loss of -$1.19B to deliver $5.68B in revenue and $476.9M in net income for FY2026. Revenue grew 43.9% in FY2024, 13.6% in FY2025, and 15.9% in FY2026, achieving a 5-year revenue CAGR of 5.8%. Operating margin improved from -31.6% in FY2022 to 11.4% in FY2026, while gross margin reached 54.6%. For the trailing twelve months ended May 31, 2026, revenue totaled $5.66B with an operating margin of 5.6% and EPS of $3.00. In the latest quarter, quarterly revenue rose 23.0% year-over-year, while quarterly earnings grew 720.6%.

As of May 31, 2026, New Oriental held $5.29B in cash and short-term investments and $848.8M in total debt, resulting in net cash of $4.44B. Shareholders' equity was $3.99B, supporting a current ratio of 1.50 and a debt-to-equity ratio of 0.21. Operating cash flow reached $1.03B in FY2026, matching free cash flow of $1.03B. Cash deployment in FY2026 included $246.9M in capital expenditures, $230.9M in share buybacks, and $96.4M in dividends paid, alongside a 5-year share count change of -7.1%.

EDU trades at a trailing P/E of 20.3x and a forward P/E of 12.3x, compared to medians of 18.6x and 14.3x for its US-listed Consumer Defensive peers. Its enterprise value to EBITDA ratio is 4.7x, below the peer group median of 11.7x, while its price-to-sales of 1.7x sits above the peer median of 0.7x. The company's enterprise value is $4.30B compared to a market capitalization of $9.44B. Over the past year, EDU returned 12.4%, trailing the S&P 500 (SPY) return of 16.8%, while its 5-year return of 164.3% surpassed SPY's 83.0%.

New Oriental has an annual forward dividend of $1.20, representing a dividend yield of 1.97% and a payout ratio of 65.9%. The company has paid dividends for 3 consecutive years, with distributions classified under an Other frequency. Its most recent ex-dividend date occurred on May 15, 2026, following total dividend distributions of $96.4M in FY2026.

Analyst coverage consists of 13 Strong Buy, 3 Buy, and 4 Hold ratings, with no Sell or Strong Sell recommendations. The mean price target is $73.62, representing a 20.9% premium over the last close of $60.88. For the fiscal year ending May 31, 2027, consensus estimates project revenue of $6.60B and EPS of $4.34, reflecting 21.6% EPS growth. New Oriental beat EPS expectations in 2 of the trailing 4 quarters, and its next earnings date is October 28, 2026.

This page is an AI-written research summary of New Oriental Education & Technology Group Inc. (EDU). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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