New Oriental Education & Technology Group Inc., a Chinese private education provider, reported 23.1% first-quarter revenue growth, but faster expense growth narrowed its operating margin to 20.0%.
Revenue totaled $1.874 billion in New Oriental’s fiscal 2027 first quarter, covering the three months ended Aug. 31, 2026, up from $1.523 billion in the year-earlier period. The unaudited results showed operating income climbed 20.5% to $374.7 million, while net income attributable to New Oriental rose 13.5% to $273.2 million. Diluted net income per ADS attributable to New Oriental was $1.74; each American depositary share represents 10 common shares.
Operating costs and expenses came to $1.500 billion, 23.7% above the year-earlier quarter and a faster increase than revenue. New Oriental said the rise chiefly reflected East Buy’s expansion of proprietary products and livestreaming e-commerce. The reported operating margin was 20.0%, compared with 20.4% a year earlier. Its non-GAAP operating margin was 21.7%, down from 22.0%; that measure excludes items including share-based compensation and amortization of acquired intangible assets.
Executive Chairman Michael Yu said newer education initiatives grew about 24.7% year over year. Domestic test preparation for adults and university students rose about 22.3%, and overseas test-preparation and consulting revenue gained about 7.7%, he said. Chief Financial Officer Stephen Zhihui Yang said operating margins rose at East Buy and the core education business as efficiency improved and learning centers were used more fully. He said East Buy’s larger share of group revenue changed the sales mix.
New Oriental reaffirmed its fiscal 2027 revenue forecast at $6.454 billion to $6.680 billion, equal to growth of 14% to 18% year over year. The company described the projection as preliminary and subject to change, including with movements in the dollar-yuan exchange rate.
The board approved a fiscal 2027 cash dividend of $0.20 per common share, or $2 per ADS, to be paid in two installments. The first $1-per-ADS payment is expected on or around Dec. 4, 2026, for ADS holders of record at the close of business on Nov. 18, 2026, New York time. The record date for the second installment has not been set. New Oriental scheduled an earnings call for 8 a.m. ET on Oct. 28, 2026.
