New Oriental Q3 Revenues Jump 19.8%, Net Income Climbs 45.3%
New Oriental’s Q3 FY2026 revenues rose 19.8% to US$1.417 billion, operating income jumped 44.8% to US$180.3 million, and net income climbed 45.3% to US$126.8 million. Overseas test prep grew 7.4%, domestic adult and university test prep rose 14.5%, and new initiatives surged 23.3%.
1. Financial Results
In Q3 FY2026 ended February 28, New Oriental reported net revenues of US$1.417 billion, up 19.8% year over year, operating income of US$180.3 million, up 44.8%, and net income of US$126.8 million, up 45.3%. Non-GAAP operating income rose 42.8% to US$202.9 million.
2. Segment Performance
Revenues from overseas test preparation increased by 7.4%, domestic adult and university test prep grew 14.5%, and new educational business initiatives surged 23.3%. The company rolled out non-academic tutoring courses in about 60 cities, enrolling approximately 458,000 students this quarter.
3. Margin Improvement and Efficiency
Non-GAAP operating margin expanded 230 basis points to 14.3% as enhanced operational efficiency and better utilization across the education business lowered costs. Management emphasized disciplined capacity expansion and cost-structure optimization to sustain high-quality growth.
4. Strategic Initiatives
New Oriental deepened AI integration within its OMO teaching system and rolled out intelligent learning devices adopted by around 367,000 active paid users. It also expanded its customer service system to over 330,000 families in 12 cities and launched multiple East Buy live-streaming channels to drive private label and membership ecosystem development.