HSBC Upgrades New Oriental Education & Technology Group to Buy Following Strong Q2 FY2026 Results

New Oriental Education & Technology Group Inc. (NYSE:EDU) is one of the Top 15 Chinese Companies on US Exchanges.

On January 29, HSBC upgraded New Oriental Education & Technology Group Inc. (NYSE:EDU) from Hold to Buy. Charlotte Wei from HSBC lifted the rating on EDU following the Q2 FY2026 results and kept the price target at $68.

HSBC Upgrades New Oriental Education & Technology Group to Buy Following Strong Q2 FY2026 Results

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On January 28, New Oriental Education & Technology Group Inc. reported quarterly results for the second quarter of fiscal year 2026. The company posted net revenue of around $1.19 billion, surpassing consensus estimates by $28.62 million and up 14.7% year-over-year. Adjusted earnings per share were approximately $0.45, exceeding estimates by $0.11 per share. The company’s net profit was $45.5 million, a notable growth of 42.3% from a year ago. Chenggang Zhou, New Oriental’s Chief Executive Officer, said:

In this fiscal quarter, we executed cautious capacity expansion while carefully balancing revenue growth and operational efficiency. In parallel, we enhanced our OMO (online-merge-offline) teaching system while investing in AI integration across our education ecosystem. We remain driven to embedding AI across existing educational offerings, refining new AI-powered products, and extending AI application to boost operational efficiency and solidify support for our teaching staff and employees.

New Oriental Education & Technology Group’s results were driven by robust growth in overseas test preparation, which saw a 4.1% year-over-year increase. The domestic test preparation business grew nearly 12.8% year-over-year, followed by EDU’s new educational business initiatives, which experienced 21.6% growth from a year ago. The company’s non-academic tutoring courses available across 50 cities attracted nearly 1.06 million students in Q2. Whereas, EDU’s intelligent learning system and devices recorded 352,000 active paid users during the quarter.

New Oriental Education & Technology Group Inc. (NYSE:EDU) is an education and training services company. It provides private educational services under the New Oriental brand in China.

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Disclosure: None. This article is originally published at Insider Monkey.