New Oriental’s K-12 Boom: The Surprising Revenue Driver Wall Street Is Ignoring!

New Oriental Education & Technology Group reported its first-quarter fiscal 2026 financial results, highlighting both strengths and challenges for its future trajectory. The company showcased a moderate 6.1% year-over-year increase in total net revenue, which indicates stable growth following a period of strategic adjustments. This growth is credited to enhancing capabilities, operational resilience, and a focus on sustainable profitability. One significant achievement was the improvement in non-GAAP operating margins, reaching 22%, a 100 basis point increase year-over-year. This suggests successful cost management and efficiency measures. Moreover, the company’s core businesses, along with new initiatives, have demonstrated progress, adding positive momentum to overall performance. Breaking down the performance by segment, the overseas test prep business and the overseas study consulting business saw a modest revenue increase of 1% and 2% year-over-year, respectively. The segment catering to adults and university students reported a robust 14% increase in revenue, indicating strong demand.