New Oriental Education Stock Soars on Strong Earnings and $500M Capital Return Plan

Shares of New Oriental Education & Technology Group (HKG: 9901) surged 16.7% in Hong Kong trading on Thursday, closing at HK$46.58, after the company announced a significant earnings beat for its fourth quarter and full fiscal year ended May 31, 2026.

Blockbuster Earnings Report

The company's financial results far exceeded market expectations, signaling robust growth in its core business. According to a report from Investing.com, New Oriental's fourth-quarter performance was particularly strong:

• Net Revenue: Climbed 23.0% year-over-year to $1.53 billion.
• Operating Profit: Soared more than tenfold compared to the same period in the prior year.
• Net Profit: Attributable to shareholders, net profit jumped a staggering 775.8% year-over-year to $62.2 million.

For the full fiscal year 2026, New Oriental reported a 15.5% increase in net revenue to $5.66 billion and a 27.8% rise in net profit to $475 million. The company's non-GAAP diluted earnings per ADS of $0.55 also came in ahead of analyst forecasts of approximately $0.52.

Capital Return Boosts Investor Confidence

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Beyond the strong operational results, New Oriental provided a secondary catalyst for investors by announcing a $500 million capital return plan for fiscal year 2027. This move signals management's confidence in the company's financial health and future cash flow.

The plan includes approximately $300 million in cash dividends, which will be paid in two installments, as well as a new share repurchase program. Such programs are often viewed favorably by investors as they can increase earnings per share and return direct value to stockholders.

Outlook and Market Reaction

Looking ahead, New Oriental issued optimistic guidance for the upcoming fiscal year. The company projected revenue growth for fiscal 2027 to be in the range of 14% to 18%, indicating that its leadership expects the current growth momentum to continue.

The combination of a powerful earnings beat, a significant shareholder return initiative, and a positive forward outlook fueled Thursday's substantial rally in the company's stock.