Earnings release
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New Oriental Announces Results for the Fourth Fiscal Quarter and the Fiscal Year Ended May 31, 2026 BEIJING, July 29, 2026 /PRNewswire/ – New Oriental Education & Technology Group Inc. (the "Company" or "New Oriental") (NYSE: EDU/ 9901.SEHK), a provider of private educational services in China, today announced its unaudited financial results for the fourth fiscal quarter and fiscal year ended May 31, 2026. Financial Highlights for the Fourth Fiscal Quarter Ended May 31, 2026 • Total net revenues increased by 23.0% year over year to US$1,529.5 million for the fourth fiscal quarter of 2026. • Operating income increased to US$85.8 million for the fourth fiscal quarter of 2026, compared to an operating loss of US$8.7 million in the prior-year period. • Net income attributable to New Oriental increased by 775.8% year over year to US$62.2 million for the fourth fiscal quarter of 2026. Key Financial Results (in thousands US$, except per ADS(1) data) 4Q FY2026 4Q FY2025 % of change Net revenues 1,529,532 1,243,155 23.0% Operating income/(loss) 85,797 (8,674) 1,089.1% Non-GAAP operating income (2)(3) 110,010 81,678 34.7% Net income attributable to New Oriental 62,182 7,100 775.8% Non-GAAP net income attributable to New Oriental (2)(3) 87,760 98,083 -10.5% Net income per ADS attributable to New Oriental - basic 0.40 0.04 791.3% Net income per ADS attributable to New Oriental - diluted 0.39 0.04 793.6% Non-GAAP net income per ADS attributable to New Oriental - basic (2)(3)(4) 0.56 0.62 -8.9% Non-GAAP net income per ADS attributable to New Oriental - diluted (2)(3)(4) 0.55 0.61 -9.6% (in thousands US$, except per ADS(1) data) FY2026 FY2025 % of change Net revenues 5,661,294 4,900,262 15.5% Operating income 643,251 428,250 50.2% Non-GAAP operating income (2)(3) 737,568 554,228 33.1% Net income attributable to New Oriental 475,172 371,716 27.8% Non-GAAP net income attributable to New Oriental (2)(3) 571,106 517,071 10.5% Net income per ADS attributable to New Oriental - basic 3.01 2.29 31.2% Net income per ADS attributable to New Oriental - diluted 2.97 2.28 30.4% Non-GAAP net income per ADS attributable to New Oriental - basic (2)(3)(4) 3.62 3.19 13.3% Non-GAAP net income per ADS attributable to New Oriental - diluted (2)(3)(4) 3.57 3.17 12.8% (1) Each ADS represents ten common shares. The Hong Kong-listed shares are fully fungible with the ADSs listed on NYSE. (2) GAAP represents Generally Accepted Accounting Principles in the United States of America. (3) New Oriental provides non-GAAP financial measures on net income attributable to New Oriental, operating income and net income per ADS attributable to New Oriental that exclude share-based compensation expenses, amortization of intangible assets resulting from business acquisitions, (gain) /loss from fair value change of investments, (gain) /loss from equity method investments, impairment of long-term investments, impairment of goodwill, (gain) /loss on disposals of investments and others, as well as tax effects on non-GAAP adjustments. For further details on these adjustments, please refer to the section titled "About Non-GAAP Financial Measures" and the tables captioned "Reconciliations of Non-GAAP Measures to the Most Comparable GAAP Measures" set forth at the end of this release. (4) The Non-GAAP net income per ADS attributable to New Oriental is computed using Non-GAAP net income attributable to New Oriental and the same number of shares and ADSs used in GAAP basic and diluted EPS calculation. Operating Highlights for the Fourth Fiscal Quarter Ended May 31, 2026 Michael Yu, New Oriental's Executive Chairman, commented, "We are pleased to conclude the final quarter of fiscal year 2026 on a strong note, with continued healthy top line growth of 23.0%. Revenues from overseas test preparation and consulting business increased by approximately 3.6%. In addition, our domestic test preparation business targeting adults and university students grew by approximately 29.1% year over year. Our new educational business initiatives also gained meaningful traction, growing approximately 24.8% year over year. This quarter, our non- academic tutoring courses reached around 60 cities, attracting approximately 1,072,000 student enrollments, and our intelligent learning system and devices were adopted across around 60 cities, with approximately 326,000 active paid users. These results reflect the soundness of our core education strategy and our unwavering commitment to elevating teaching standards and product quality. The consistent growth we have achieved validates our long-term
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approach and demonstrates its capacity to generate sustainable value. Alongside our growth momentum, we have made significant strides in cost optimization and operational efficiency, advancing these initiatives into a new phase. Our newly established New Oriental Home – a comprehensive customer service platform integrated across all departments – has already served over 950,000 families across 69 cities by the end of this quarter. This infrastructure is designed to deepen customer loyalty and retention, unlock cross-selling potential, and maximize customer lifetime value, all while reducing customer acquisition and marketing costs. We remain steadfast in our commitment to strengthening our brand and delivering lasting value to both our customers and shareholders." Chenggang Zhou, New Oriental's Chief Executive Officer, added, "This fiscal quarter, we continued to execute our strategy of disciplined capacity expansion – one that over the full year has demonstrated remarkable effectiveness in balancing revenue growth with operational efficiency. Equally important, AI has become a central organizational priority, and we have advanced its adoption with clear execution and measurable progress. We further enhanced our OMO teaching system and deepened AI integration across our education ecosystem – embedding AI into existing offerings, refining AI‑powered products, and deploying AI to boost operational efficiency and support for our teaching staff. Together, these efforts position us well for sustained long-term competitive advantage. For FY2026, East Buy continued to offer products under its "Three Highs" standards – safety, quality, and cost performance – backed by reliable service. It launched 11 new Douyin vertical accounts, expanding its channel matrix to 18, with coverage spanning food, fresh produce, nutrition, and more niche categories. It also upgraded its live streaming system and introduced talent recruitment initiatives, supplier summits, and user feedback mechanisms to strengthen its ecosystem. Looking ahead to FY2027, East Buy will expand offline experience stores via New Oriental's learning centers, accelerate private label development, refine membership operations, and improve supply chain efficiency – all in service of driving sustainable long-term growth." Stephen Zhihui Yang, New Oriental's Executive President and Chief Financial Officer, commented, "Despite one-time costs and expenses arising from our internal management restructuring this quarter, we still delivered year over year expansion in Non-GAAP operating margin. This achievement was primarily driven by enhanced operational efficiency , improved utilization within our educational business, and the solid top- and bottom-line performance of East Buy. For the quarter, Non-GAAP operating margin reached 7.2%, up by 60 basis points compared to the same period last fiscal year. For the full fiscal year 2026, Non-GAAP operating margin expanded by 170 basis points, from 11.3% to 13.0%. Looking ahead, we will continue to execute our cost and efficiency initiatives across key business lines in the coming new fiscal year. Building on the structural optimizations already in place, we aim to steadily reduce fixed costs, drive further operational efficiencies, and reinforce the foundation for sustainable, profitable growth." Update on Shareholder Return for the Fiscal Year 2026 In October 2025, the Company announced that, pursuant to its previously adopted three -year shareholder return plan, the board of directors had approved an ordinary dividend of US$0.12 per common share, or US$1.20 per ADS, to be distributed in two installments as part of the shareholder return for the fiscal year 2026. The first and second installments have been fully paid to shareholders and ADS holders. Additionally, as part of the shareholder return for the fiscal year 2026, the Company also announced in October 2025 a share repurchase program, under which the Company is authorized to repurchase up to US$300 million of its ADSs or common shares over the subsequent 12 months. As of July 28, 2026, the Company had repurchased a total of approximately 51.5 million common shares (including common shares represented by ADSs) for an aggregate consideration of approximately US$274.0 million from the open market under this share repurchase program. The Company expects to continue to carry out this share repurchase program for the remainder of its duration in accordance with its terms. Shareholder Return for the Fiscal Year 2027 To implement its three-year shareholder return plan adopted in July 2025 for the fiscal year 2027, the board of directors of the Company has approved an ordinary cash dividend and a new share repurchase program. The aggregate amount of the cash dividend for the fiscal year 2027 is expected to be approximately US$300 million, to be paid in two installments in December 2026 and June 2027, respectively. Further details regarding the cash dividend will be decided by the board of directors and announced by the Company in due course. Pursuant to the share repurchase program for the fiscal year 2027, the Company may repurchase up to US$200 million of its ADSs or common shares over the subsequent 12 months following the board approval. The Company's proposed repurchases may be made from time to time in the open market at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations. The board of directors of the Company will review the share repurchase program periodically, and may authorize adjustment of its terms and size. The Company expects to fund the repurchases out of its existing cash balance.
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Financial Results for the Fourth Fiscal Quarter Ended May 31, 2026 Net Revenues For the fourth fiscal quarter of 2026, New Oriental reported net revenues of US$ 1,529.5 million, representing a 23.0% increase year over year. The growth was mainly driven by the increase in net revenues from the Company’s new educational business initiatives. Operating Costs and Expenses Operating costs and expenses for the quarter were US$1,443.7 million, representing a 15.3 % increase year over year. • Cost of revenues increased by 25.9% year over year to US$717.3 million. • Selling and marketing expenses increased by 23.9% year over year to US$262.5 million. • General and administrative expenses increased by 13.2% year over year to US$463.9 million. • Impairment of goodwill was nil, compared to US$60.3 million in the same period of the prior fiscal year. Total share-based compensation expenses, which were allocated to related operating costs and expenses, decreased by 20.7% to US$22.7 million in the fourth fiscal quarter of 2026. Operating Income / Loss and Operating Margin Operating income increased to US$85.8 million for the fourth fiscal quarter of 2026, compared to an operating loss of US$8.7 million in the prior -year period. Non-GAAP income from operations for the quarter, excluding share -based compensation expenses , amortization of intangible assets resulting from business acquisitions and impairment of goodwill, was US$110.0 million, representing a 34.7% increase year over year. Operating margin for the quarter was 5.6%, compared to negative 0.7% in the same period of the prior fiscal year. Non- GAAP operating margin, which excludes share -based compensation expenses , amortization of intangible assets resulting from business acquisitions and impairment of goodwill , for the quarter was 7.2%, compared to 6.6% in the same period of the prior fiscal year. Net Income and Net Income per ADS Net income attributable to New Oriental for the quarter was US$62.2 million, representing a 775.8% increase year over year. Basic and diluted net income per ADS attributable to New Oriental were US$0.40 and US$0.39, respectively. Non-GAAP Net Income and Non-GAAP Net Income per ADS Non-GAAP net income attributable to New Oriental for the quarter, excluding share -based compensation expenses, amortization of intangible assets resulting from business acquisitions, (gain)/loss from fair value change of investments, loss/(gain) from equity method investments, impairment of long-term investments, impairment of goodwill, loss/(gain) on disposals of investments and others, as well as tax effects on non-GAAP adjustments, was US$87.8 million, representing a 10.5% decrease year over year. Non-GAAP basic and diluted net income per ADS attributable to New Oriental were US$0.56 and US$0.55, respectively. Cash Flow Net operating cash inflow for the fourth fiscal quarter of 202 6 was approximately US$ 518.7 million and capital expenditures for the quarter were US$99.0 million. Balance Sheet As of May 31, 2026, New Oriental had cash and cash equivalents of US$1,821.2 million. In addition, the Company had US$1,366.8 million in term deposits and US$2,372.3 million in short-term investments. New Oriental's deferred revenue, which represents cash collected upfront from customers and related revenue that will be recognized as the services or goods are delivered, at the end of the fourth quarter of fiscal year 2026 was US$2,242.9 million, an increase of 14.8% as compared to US$1,954.5 million at the end of the fourth quarter of fiscal year 2025. Financial Results for the Fiscal Year Ended May 31, 2026
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For the fiscal year 2026 ended May 31, 2026 , New Oriental reported net revenues of US$ 5,661.3 million, representing a 15.5% increase year over year. Operating income was US$643.3 million, representing a 50.2% increase year over year. Non-GAAP operating income, excluding share-based compensation expenses, amortization of intangible assets resulting from business acquisitions and impairment of goodwill , for the fiscal year 2026 was US $737.6 million, representing a 33.1% increase year over year. Operating margin for the fiscal year 2026 was 11.4%, compared to 8.7% for the same period of the prior fiscal year. Non-GAAP operating margin, which excludes share -based compensation expenses , amortization of intangible assets resulting from business acquisitions and impairment of goodwill, for the fiscal year 2026, was 13.0%, compared to 11.3% for the same period of the prior fiscal year. Net income attributable to New Oriental for the fiscal year 2026 was US$475.2 million, representing a 27.8% increase year over year. Basic and diluted net income per ADS attributable to New Oriental for the fiscal year 2026 amounted to US$3.01 and US$2.97, respectively. Non-GAAP net income attributable to New Oriental , excluding share-based compensation expenses, amortization of intangible assets resulting from business acquisitions, (gain) / loss from fair value change of investments, loss from equity method investments, impairment of long -term investments, impairment of goodwill, gain on disposals of investments and others, as well as tax effects on non-GAAP adjustments, for the fiscal year 2026 was US$571.1 million, representing a 10.5% increase year over year. Non-GAAP basic and diluted net income per ADS attributable to New Oriental for the fiscal year 2026 amounted to US$3.62 and US$3.57, respectively. Outlook for the Full Year of FY2027 New Oriental expects total net revenues in the fiscal year 2027 (June 1, 2026 to May 31, 2027) to be in the range of US$6,453.9 million to US$6,680.3 million, representing a year over year increase in the range of 14% to 18%. This forecast reflects New Oriental's current and preliminary view, which is subject to change. The forecast is based on the current USD/RMB exchange rate, which is also subject to change. Conference Call Information New Oriental's management will host an earnings conference call at 8 AM on July 29, 2026, U.S. Eastern Time (8 PM on July 29, 2026, Beijing/Hong Kong Time). Please register in advance of the conference, using the link provided below. Upon registering, you will be provided with participant dial-in numbers, and unique personal PIN. Conference call registration link: https://register-conf.media-server.com/register/BIffe9352b170044a4b248e41d134aed08. It will automatically direct you to the registration page of “New Oriental FY2026 Q4 Earnings Conference Call” where you may fill in your details for RSVP. In the 10 minutes prior to the call start time, you may use the conference access information (including dial in number(s) and personal PIN) provided in the confirmation email received at the point of registering. Joining the conference call via a live webcast: Additionally, a live and archived webcast of the conference call will be available at http://investor.neworiental.org. Listening to the conference call replay: A replay of the conference call may be accessed via the webcast on -demand by registering at https://edge.media- server.com/mmc/p/pdsxxtdn first. The replay will be available until July 29, 2027. About New Oriental New Oriental is a provider of private educational services in China offering a wide range of educational programs, services and products to a varied student population throughout China. New Oriental's program, service and product
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offerings mainly consist of educational services and test preparation courses, private label products and livestreaming e-commerce, overseas study consulting services , and educational materials and distribution . New Oriental is listed on NYSE (NYSE: EDU) and SEHK (9901.SEHK), respectively. New Oriental's ADSs, each of which represents ten common shares, are listed and traded on the NYSE. The Hong Kong-listed shares are fully fungible with the ADSs listed on NYSE. For more information about New Oriental, please visit http://www.neworiental.org/english/. Safe Harbor Statement This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward -looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the outlook for the full year of fiscal year 2027, quotations from management in this announcement, as well as New Oriental's strategic and operational plans, contain forward -looking statements. New Oriental may also make written or oral forward-looking statements in its reports filed or furnished to the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about New Oriental's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company's ability to effectively and efficiently manage changes of its existing business and new business; its ability to execute its business strategies; uncertainties in relation to the interpretation and implementation of or proposed changes to, the PRC laws, regulations and policies regarding the private education industry; its ability to attract students without a significant decrease in course fees; its ability to maintain and enhance its "New Oriental" brand; its ability to maintain consistent teaching quality throughout its school network, or service quality throughout its brand; its ability to achieve the benefits it expects from recent and future acquisitions; the outcome of ongoing, or any future, litigation or arbitration, including those relating to copyright and other intellectual property rights; competition in the private education sector and livestreaming e-commerce business in China; the continuing efforts of its senior management team and other key personnel, health epidemics and other outbreaks in China; and general economic conditions in China. Further information regarding these and other risks is included in its annual report on Form 20-F and other documents filed with the Securities and Exchange Commission. New Oriental does not undertake any obligation to update any forward-looking statement, except as required under applicable law. All information provided in this press release and in the attachments is as of the date of this press release, and New Oriental undertakes no duty to update such information, except as required under applicable law. About Non-GAAP Financial Measures To supplement New Oriental's consolidated financial results presented in accordance with GAAP, New Oriental uses the following measures defined as non-GAAP financial measures by the SEC: net income excluding share-based compensation expenses, amortization of intangible assets resulting from business acquisitions, (gain)/loss from fair value change of investments, loss/(gain) from equity method investments, impairment of long -term investments and goodwill, loss/(gain) on disposals of investments and others, as well as tax effects on non-GAAP adjustments; operating income excluding share-based compensation expenses, amortization of intangible assets resulting from business acquisitions, and impairment of goodwill; operating margin excluding share-based compensation expenses, amortization of intangible assets resulting from business acquisitions, and impairment of goodwill; and basic and diluted net income per ADS and per share excluding share-based compensation expenses, amortization of intangible assets resulting from business acquisitions, loss/(gain) from fair value change of investments, loss/(gain) from equity method investments, impairment of long-term investments and goodwill, loss/(gain) on disposals of investments and others, as well as tax effects on non-GAAP adjustments. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and prese nted in accordance with GAAP. For more information on these non-GAAP financial measures, please see the tables captioned "Reconciliations of non-GAAP measures to the most comparable GAAP measures" set forth at the end of this release. New Oriental believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding from each non -GAAP measure certain items that may not be indicative of its operating performance f rom a cash perspective. New Oriental believes that both management and investors benefit from referring to these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non -GAAP financial measures al so facilitate management's internal comparisons to New Oriental's historical performance and liquidity. New Oriental believes these non -GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental inform ation used by management in its financial and operational decision making. A limitation of using these non -GAAP measures is that they exclude from each non-GAAP measure certain items that have been and will continue to be for the foreseeable future a signi ficant recurring expense in its business. Management compensates for these limitations by providing specific information
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regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables have more details on the reconciliations between GAAP financial measures that are most directly comparable to non -GAAP financial measures. Contacts For investor and media inquiries, please contact: Ms. Rita Fong Ms. Sisi Zhao FTI Consulting New Oriental Education & Technology Group Inc. Tel: +852 3768 4548 Tel: +86-10-6260-5568 Email: rita.fong@fticonsulting.com Email: zhaosisi@xdf.cn
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CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) As of May 31 As of May 31 2026 2025 (Unaudited) (Audited) USD USD ASSETS: Current assets: Cash and cash equivalents 1,821,202 1,612,379 Restricted cash, current 179,103 180,724 Term deposits, current 919,492 1,092,115 Short-term investments 2,372,290 1,873,502 Accounts receivable, net 36,991 33,629 Inventory, net 105,803 80,884 Prepaid expenses and other current assets, net 389,132 307,902 Amounts due from related parties, current 7,742 6,567 Total current assets 5,831,755 5,187,702 Restricted cash, non-current 96,185 24,030 Term deposits, non-current 447,295 355,665 Property and equipment, net 880,068 767,346 Land use rights, net 57,191 54,900 Amounts due from related parties, non-current 12,645 12,464 Long-term deposits 56,434 48,815 Intangible assets, net 7,773 13,020 Goodwill, net 46,558 43,832 Long-term investments, net 383,063 388,481 Deferred tax assets, net 105,271 97,932 Right-of-use assets 854,358 793,842 Other non-current assets 13,424 17,470 Total assets 8,792,020 7,805,499 LIABILITIES AND EQUITY Current liabilities: Accounts payable 126,942 80,484 Accrued expenses and other current liabilities 937,749 830,583 Dividend payable 93,413 - Income taxes payable 203,531 167,881 Amounts due to related parties 88 405 Deferred revenue 2,242,946 1,954,464 Operating lease liability, current 285,016 255,997 Total current liabilities 3,889,685 3,289,814 Deferred tax liabilities 14,094 14,174 Unsecured senior notes - 14,403 Operating lease liabilities, non-current 563,825 533,376 Total long-term liabilities 577,919 561,953 Total liabilities 4,467,604 3,851,767 Equity New Oriental Education & Technology Group Inc. shareholders' equity 3,986,323 3,661,873 Non-controlling interests 338,093 291,859 Total equity 4,324,416 3,953,732 Total liabilities and equity 8,792,020 7,805,499
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NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except for per share and per ADS amounts) For the Three Months Ended May 31 2026 2025 (Unaudited) (Unaudited) USD USD Net revenues 1,529,532 1,243,155 Operating cost and expenses (note 1) Cost of revenues 717,311 569,872 Selling and marketing 262,518 211,906 General and administrative 463,906 409,752 Impairment of goodwill - 60,299 Total operating cost and expenses 1,443,735 1,251,829 Operating income/(loss) 85,797 (8,674) Gain/(Loss) from fair value change of investments 2,962 (458) Other income, net 15,374 19,022 Provision for income taxes (25,379) (1,535) (Loss)/Gain from equity method investments (5,780) 2,982 Net income 72,974 11,337 Net income attributable to non-controlling interests (10,792) (4,237) Net income attributable to New Oriental Education & Technology Group Inc.'s shareholders 62,182 7,100 Net income per share attributable to New Oriental-Basic (note 2) 0.04 0.00 Net income per share attributable to New Oriental-Diluted (note 2) 0.04 0.00 Net income per ADS attributable to New Oriental-Basic (note 2) 0.40 0.04 Net income per ADS attributable to New Oriental-Diluted (note 2) 0.39 0.04
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NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC. RECONCILIATIONS OF NON-GAAP MEASURES TO THE MOST COMPARABLE GAAP MEASURES (In thousands except for per share and per ADS amounts) For the Three Months Ended May 31 2026 2025 (Unaudited) (Unaudited) USD USD Operating income/(loss) 85,797 (8,674) Share-based compensation expenses 22,711 28,636 Amortization of intangible assets resulting from business acquisitions 1,502 1,417 Impairment of goodwill - 60,299 Non-GAAP operating income 110,010 81,678 Operating margin 5.6% -0.7% Non-GAAP operating margin 7.2% 6.6% Net income attributable to New Oriental 62,182 7,100 Share-based compensation expenses 21,173 27,174 (Gain)/Loss from fair value change of investments (2,962) 458 Amortization of intangible assets resulting from business acquisitions 931 878 Loss/(Gain) from equity method investments 5,780 (2,982) Impairment of long-term investments - 4,865 Impairment of goodwill - 60,299 Loss/(Gain) on disposals of investments and others 163 (184) Tax effects on Non-GAAP adjustments 493 475 Non-GAAP net income attributable to New Oriental 87,760 98,083 Net income per ADS attributable to New Oriental- Basic (note 2) 0.40 0.04 Net income per ADS attributable to New Oriental- Diluted (note 2) 0.39 0.04 Non-GAAP net income per ADS attributable to New Oriental - Basic (note 2) 0.56 0.62 Non-GAAP net income per ADS attributable to New Oriental - Diluted (note 2) 0.55 0.61 Weighted average shares used in calculating basic net income per ADS (note 2) 1,560,309,964 1,587,987,886 Weighted average shares used in calculating diluted net income per ADS (note 2) 1,582,646,432 1,602,366,310 Net income per share - basic 0.04 0.00 Net income per share - diluted 0.04 0.00 Non-GAAP net income per share - basic 0.06 0.06 Non-GAAP net income per share - diluted 0.06 0.06
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Notes: Note 1: Share-based compensation expenses (in thousands) are included in the operating cost and expenses as follows: For the Three Months Ended May 31 2026 2025 (Unaudited) (Unaudited) USD USD Cost of revenues 243 477 Selling and marketing 2,310 1,275 General and administrative 20,158 26,884 Total 22,711 28,636 Note 2: Each ADS represents ten common shares. NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) For the Three Months Ended May 31 2026 2025 (Unaudited) (Unaudited) USD USD Net cash provided by operating activities 518,749 399,122 Net cash used in investing activities (332,125) (88,292) Net cash used in financing activities (152,720) (98,477) Effect of exchange rate changes 25,789 15,503 Net change in cash, cash equivalents and restricted cash 59,693 227,856 Cash, cash equivalents and restricted cash at beginning of period 2,036,797 1,589,277 Cash, cash equivalents and restricted cash at end of period 2,096,490 1,817,133
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NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands except for per share and per ADS amounts) For the Year Ended May 31 2026 2025 (Unaudited) (Audited) USD USD Net revenues 5,661,294 4,900,262 Operating cost and expenses (note 1) Cost of revenues 2,568,167 2,183,291 Selling and marketing 855,864 783,959 General and administrative 1,594,012 1,444,463 Impairment of goodwill - 60,299 Total operating cost and expenses 5,018,043 4,472,012 Operating income 643,251 428,250 Gain/(Loss) from fair value change of investments 10,613 (10,078) Other income, net 76,685 118,212 Provision for income taxes (196,111) (146,294) Loss from equity method investments (17,777) (14,257) Net income 516,661 375,833 Net income attributable to non-controlling interests (41,489) (4,117) Net income attributable to New Oriental Education & Technology Group Inc.'s shareholders 475,172 371,716 Net income per share attributable to New Oriental-Basic (note 2) 0.30 0.23 Net income per share attributable to New Oriental- Diluted (note 2) 0.30 0.23 Net income per ADS attributable to New Oriental-Basic (note 2) 3.01 2.29 Net income per ADS attributable to New Oriental-Diluted (note 2) 2.97 2.28
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NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC. RECONCILIATION OF NON-GAAP MEASURES TO THE MOST COMPARABLE GAAP MEASURES (In thousands except for per share and per ADS amounts) For the Year Ended May 31 2026 2025 (Unaudited) (Unaudited) USD USD Operating income 643,251 428,250 Share-based compensation expenses 88,466 59,933 Amortization of intangible assets resulting from business acquisitions 5,851 5,746 Impairment of goodwill - 60,299 Non-GAAP operating income 737,568 554,228 Operating margin 11.4% 8.7% Non-GAAP operating margin 13.0% 11.3% Net income attributable to New Oriental 475,172 371,716 Share-based compensation expenses 84,257 54,829 (Gain) /Loss from fair value change of investments (10,613) 10,078 Amortization of intangible assets resulting from business acquisitions 3,627 3,581 Loss from equity method investments 17,777 14,257 Impairment of long-term investments - 4,865 Impairment of goodwill - 60,299 Gain on disposals of investments and others (1,353) (345) Tax effects on Non-GAAP adjustments 2,239 (2,209) Non-GAAP net income attributable to New Oriental 571,106 517,071 Net income per ADS attributable to New Oriental- Basic (note 2) 3.01 2.29 Net income per ADS attributable to New Oriental- Diluted (note 2) 2.97 2.28 Non-GAAP net income per ADS attributable to New Oriental - Basic (note 2) 3.62 3.19 Non-GAAP net income per ADS attributable to New Oriental - Diluted (note 2) 3.57 3.17 Weighted average shares used in calculating basic net income per ADS (note 2) 1,578,483,794 1,619,727,518 Weighted average shares used in calculating diluted net income per ADS (note 2) 1,595,505,635 1,631,137,164 Net income per share - basic 0.30 0.23 Net income per share - diluted 0.30 0.23 Non-GAAP net income per share - basic 0.36 0.32 Non-GAAP net income per share - diluted 0.36 0.32
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Notes: Note 1: Share-based compensation expenses (in thousands) are included in the operating costs and expenses as follows: For the Year Ended May 31 2026 2025 (Unaudited) (Audited) USD USD Cost of revenues 909 (1,261) Selling and marketing 4,228 4,658 General and administrative 83,329 56,536 Total 88,466 59,933 Note 2: Each ADS represents ten common shares. NEW ORIENTAL EDUCATION & TECHNOLOGY GROUP INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) For the Year Ended May 31 2026 2025 (Unaudited) (Audited) USD USD Net cash provided by operating activities 1,027,080 896,592 Net cash used in investing activities (457,701) (93,428) Net cash used in financing activities (380,153) (584,971) Effect of exchange rate changes 90,131 9,836 Net change in cash, cash equivalents and restricted cash 279,357 228,029 Cash, cash equivalents and restricted cash at beginning of period 1,817,133 1,589,104 Cash, cash equivalents and restricted cash at end of period 2,096,490 1,817,133