New Oriental Education & Technology Group Inc. (EDU) Stock Analysis
From tutoring crackdown to multi-pillar platform: New Oriental rebuilt itself into an OMO+AI learning, e-commerce, and cultural-tourism ecosystem with expanding margins and shareholder returns.
Overview
New Oriental (EDU) has executed one of China’s most notable post-regulatory corporate transformations. After the 2021 “Double Reduction” policy effectively dismantled its legacy K‑9 for-profit tutoring model, EDU rapidly liquidated prohibited assets, redeployed talent, and rebuilt around non-academic enrichment education, intelligent learning technology, and new lifestyle adjacencies including livestream e-commerce and cultural tourism. By Q3 FY2026 (ended Feb 28, 2026), the strategy is validated by accelerating growth and rising profitability: revenue reached US$1.417B (+19.8% YoY) and operating income climbed to US$180.3M (+44.8% YoY), alongside margin expansion and repeated guidance outperformance. Management also strengthened shareholder alignment via a multi-year payout/repurchase framework.