TAL Education Group (TAL) AI Stock Analysis

TAL Education Group, founded in 2003 and headquartered in Beijing, China, provides K-12 after-school tutoring services. The company offers tutoring programs in academic subjects including mathematics, physics, chemistry, biology, humanities, English, and Chinese. Services are delivered via small-class formats under brands such as Xueersi, Xueersi Online School, and First Leap, alongside personalized premium tutoring under Izhikang. TAL also operates the jzb.com online education platform, develops educational software and networks, and sells educational materials and products. In addition, the company provides investment management and educational consulting services across its operating markets.

TAL's annual revenue dropped 76.9% in FY2023 to $1.02B from $4.40B in FY2022, but has since expanded, reaching $2.25B in FY2025 and $3.02B in FY2026, representing 34.2% growth. Operating margin improved from -11.1% in FY2023 to 9.2% in FY2026, shifting net income from -$135.1M to $532.7M. Over the trailing twelve months, revenue reached $3.19B with an operating margin of 18.1% and a net profit margin of 28.4%. For the latest quarter ended May 31, 2026, quarterly revenue increased 31.9% year-over-year, while quarterly earnings grew 1360.0%, yielding a trailing twelve-month diluted EPS of $1.60.

As of May 31, 2026, TAL held $2.87B in cash and short-term investments against $405.5M in total debt, yielding a net cash position of $2.47B. The company maintained a current ratio of 1.69 and a debt-to-equity ratio of 0.10, backed by $4.08B in shareholders' equity. In FY2026, operating cash flow reached $603.7M, supporting capital expenditures of $93.5M and generating $510.2M in free cash flow. Capital allocation in FY2026 included $646.5M allocated toward share buybacks.

TAL trades at a trailing price-to-earnings multiple of 7.5x and a forward P/E of 9.5x, below the median of its US-listed Consumer Defensive peers of 18.6x and 14.3x, respectively. Its enterprise value-to-EBITDA stands at 10.5x, compared to 11.7x for the peer median. However, its price-to-sales multiple of 2.1x is higher than the peer median of 0.7x. Over the past year, TAL delivered a 9.3% return, trailing the 16.8% return of the S&P 500, but outperformed over five years with a 146.9% return versus 83.0% for the index.

Wall Street coverage on TAL consists of 11 Strong Buy, 5 Buy, and 3 Hold ratings, with zero Sell or Strong Sell recommendations. The mean price target is $16.10, representing a 34.1% upside from the last close of $12.00 on October 16, 2026. For the current fiscal year ending February 28, 2027, consensus estimates project EPS of $1.33 on revenue of $3.74B. TAL has beaten EPS estimates in each of the last 4 quarters, and its next earnings report is scheduled for October 29, 2026.

This page is an AI-written research summary of TAL Education Group (TAL). 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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