New Oriental Education & Technology Group (NYSE:EDU) reported a 244% surge in second-quarter operating income, signaling that the company’s strategic pivot toward non-academic tutoring and e-commerce is delivering significant operating leverage.
For the quarter ended Nov. 30, 2025, the Beijing-based company posted net revenue of $1.19 billion, a 14.7% increase from the prior year that landed at the high end of its previous guidance.
Operating income reached $66.3 million, while net income attributable to the company rose 42.3% to $45.5 million.
The growth was primarily driven by "new educational business initiatives," including non-academic courses like art and programming, as well as a resilient overseas study consulting arm.
The company’s profitability metrics showed the most dramatic improvement.
Non-GAAP operating margin expanded to 7.5%, a 470-basis-point jump compared to the same period last year.
Flush with $1.84 billion in cash and short-term investments, New Oriental is intensifying its efforts to reward shareholders.
The company announced an ordinary dividend of $0.12 per share ($1.20 per ADS) and confirmed that it has already repurchased $86.3 million of its stock under a newly authorized $300 million buyback program.
Looking ahead, management raised its full-year 2026 revenue guidance to a range of $5.29 billion to $5.49 billion.