New Oriental Education & Technology Group Inc. (NYSE: EDU) Q4 2026 Earnings: Revenue Growth Outshines EPS Miss

• New Oriental Education reported an earnings per share (EPS) of $0.55 for Q4 2026, falling short of analyst estimates of $0.60.
• Despite the EPS miss, the China education provider posted strong revenue of $1.53 billion, surpassing estimates and marking a significant 23.0% year-over-year increase in total net revenues.
• Following the financial results, shares of New Oriental Education surged 13.38% to $57.59, with the stock considered "Significantly Undervalued" by GuruFocus, suggesting a potential investment opportunity.

New Oriental Education & Technology Group Inc. (NYSE: EDU) is a major provider of private educational services in the China education sector. The company offers a wide range of programs, including test preparation for overseas and domestic exams, and other educational services. It recently announced its unaudited financial results for the fourth fiscal quarter ending May 31, 2026.

On July 29, 2026, New Oriental Education reported its earnings results before the market opened. The company announced an earnings per share (EPS) of $0.55. This figure fell short of the consensus analyst estimate of $0.60. EPS is a company's profit divided by its outstanding shares, indicating how profitable it is for each share.

Despite the lower-than-expected earnings, New Oriental Education posted strong revenue for the quarter. Revenue came in at $1.53 billion, surpassing the estimated $1.46 billion. This represents a significant 23.0% increase in total net revenues compared to the same period in the prior year. Revenue is the total income a company generates from its business activities.

This revenue growth was driven by solid performance across its business segments. As highlighted by PR Newswire, the domestic test preparation business for adults and university students grew by about 29.1%. Furthermore, new educational business initiatives expanded by approximately 24.8%, showing strong progress in these developing areas.

Following the news, shares of New Oriental Education traded up 13.38% to $57.59, with a current market capitalization of approximately $9.13 billion. According to GuruFocus, the EDU stock is considered "Significantly Undervalued," with a GF Value assessed at $82.15. This suggests the stock's price may be low compared to its historical and projected financial performance, potentially offering an investment opportunity.