New Oriental revenue surges 20% as diversification strategy drives record Q3

New Oriental Education & Technology Group (NYSE:EDU) delivered a powerful set of third-quarter results for the period ended February 28, 2026, signaling a full-scale resurgence following its strategic pivot.

The Beijing-based provider saw double-digit top-line growth and significant margin expansion, driven by strong demand for its non-academic tutoring and intelligent learning systems.

For the fiscal third quarter, net revenues climbed 19.8% year-over-year to $1,417.3 million.

The growth was even more pronounced at the bottom line, with operating income soaring 44.8% to $180.3 million.

The company’s focus on operational efficiency paid off as non-GAAP operating margin improved by 230 basis points to 14.3%, reflecting the benefits of a leaner corporate structure and higher capacity utilization.

Meanwhile, the company’s financial position remains robust, ending the quarter with a cash and equivalents position of $1,783.4 million.

Deferred revenue, a key indicator of future growth and seasonal program demand, rose 7.8% to $1,885.9 million.

This liquidity has allowed New Oriental to maintain an aggressive capital return strategy.

While the board approved a second dividend installment of $0.6 per ADS, the company also repurchased approximately 3.3 million ADSs for $184.3 million year-to-date under its current $300 million program.

Looking ahead, management is bullish on the remainder of the fiscal year.

The company issued Q4 revenue guidance of $1,429.6 million to $1,466.9 million, representing a year-over-year increase of 15% to 18%.