Gaotu Techedu Inc. (GOTU) AI Stock Analysis

Gaotu Techedu Inc., formerly known as GSX Techedu Inc., is a technology-driven education firm based in Beijing, China. Founded in 2014, the company specializes in online K-12 after-school tutoring covering subjects such as mathematics, English, Chinese, sciences, and humanities. It also offers foreign language courses in English and Japanese, along with test preparation for post-graduate entrance exams, civil service tests, and professional certifications like the Chartered Financial Analyst designation. In addition, the firm delivers courses via the Gaotu App, offers offline business consulting courses for educators, and develops smart devices such as multi-function translation pens.

Annual revenue fell 61.9% in FY2022 to $2.50B following FY2021 revenue of $6.56B, before rebounding 18.5% in FY2023 to $2.96B, 53.8% in FY2024 to $4.55B, and 35.0% in FY2025 to $6.15B. Gross margin contracted from 73.3% in FY2023 to 67.4% in FY2025. Operating margin was -8.2% in FY2025, recovering from -26.0% in FY2024, while net income improved from -$1.05B to -$323.3M. Over the five years from FY2020 to FY2025, revenue CAGR was -2.9%. In the trailing twelve months, revenue stood at $6.62B with an operating margin of -9.0% and EPS of -$0.12. For the latest quarter ended June 30, 2026, revenue increased 20.2% year-over-year, while quarterly earnings fell 71.2%.

As of the quarter ended June 30, 2026, Gaotu Techedu held $3.35B in cash and short-term investments against total debt of $972.7M, resulting in net cash of $2.38B. Shareholders' equity was $1.05B and total assets were $6.31B, yielding a debt-to-equity ratio of 0.93 and a current ratio of 0.86. Operating cash flow reached $416.1M in FY2025, supporting free cash flow of $246.6M. Cash allocations in FY2025 included $169.5M in capital expenditures and $343.4M in share buybacks, with share count down 9.9% over five years.

Gaotu Techedu trades at a price-to-sales multiple of 0.1x, below the 0.7x median for its US-listed Consumer Defensive peers. Its forward P/E ratio is 526.3x, compared to the peer median of 14.3x, while enterprise value to revenue sits at 0.2x with a market capitalization of $620.5M and enterprise value of $199.0M. The stock trades at a price-to-book ratio of 3.5x. Over the past year, the stock fell 13.2%, trailing the S&P 500 (SPY) gain of 16.8%. Over five years, the stock declined 20.2%, compared to an 83.0% gain for the S&P 500.

Wall Street sentiment includes 3 Strong Buy ratings, 2 Buy ratings, and zero Hold, Sell, or Strong Sell ratings. The mean price target of $3.75 represents a 42.2% premium over the last close of $2.64. For the fiscal year ending December 31, 2026, analysts estimate EPS of $0.14 on revenue of $7.07B. For the next fiscal year, 2 analysts project EPS of $0.96 and revenue of $8.02B, representing 13.4% revenue growth. The company recorded 4 EPS beats over the last 4 quarters, with the next earnings date scheduled for November 25, 2026.

This page is an AI-written research summary of Gaotu Techedu Inc. (GOTU). 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.

Related: GOTU income statement, GOTU balance sheet, GOTU key metrics, GOTU analyst forecast, GOTU chart. See the GOTU stock overview for the latest quote and news.