---
title: "TAL Education Group Announces Unaudited Financial Results for the First Fiscal Quarter Ended May 31, 2026 | TAL Stock News"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/294339540.md"
description: "TAL Education Group reported unaudited financial results for Q1 FY2027 (ended May 31, 2026). Net revenues surged 31.9% to US$758.4 million from US$575.0 million in the prior year period. Operating income increased significantly to US$137.2 million, while net income attributable to TAL jumped to US$408.0 million compared to US$31.3 million previously. The company highlighted solid execution and operational improvements driving sustainable growth."
datetime: "2026-07-30T01:51:00.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/294339540.md)
  - [en](https://longbridge.com/en/news/294339540.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/294339540.md)
generator: "portal-rs"
---

# TAL Education Group Announces Unaudited Financial Results for the First Fiscal Quarter Ended May 31, 2026 | TAL Stock News

, /PRNewswire/ -- TAL Education Group (NYSE: TAL) ("TAL" or the "Company"), a smart learning solutions provider in China, today announced its unaudited financial results for the first quarter of fiscal year 2027 ended May 31, 2026.

**Highlights for the First Quarter of Fiscal Year 2027**

-   Net revenues were US$758.4 million, compared to net revenues of US$575.0 million in the same period of the prior year.
-   Income from operations was US$137.2 million, compared to income from operations of US$14.3 million in the same period of the prior year.
-   Non-GAAP income from operations, which excluded share-based compensation expenses, was US$148.7 million, compared to non-GAAP income from operations of US$25.1 million in the same period of the prior year.
-   Net income attributable to TAL was US$408.0 million, compared to net income attributable to TAL of US$31.3 million in the same period of the prior year.
-   Non-GAAP net income attributable to TAL, which excluded share-based compensation expenses, was US$419.5 million, compared to non-GAAP net income attributable to TAL of US$42.0 million in the same period of the prior year.
-   Basic and diluted net income per American Depositary Share ("ADS") were US$0.74 and US$0.73, respectively. Non-GAAP basic and diluted net income per ADS, which excluded share-based compensation expenses, were US$0.76 and US$0.75, respectively. Three ADSs represent one Class A common share.
-   Cash, cash equivalents and short-term investments totaled US$2,874.5 million as of May 31, 2026, compared to US$3,239.3 million as of February 28, 2026.

**Financial Data——First Quarter of Fiscal Year 2027**  
(In US$ thousands, except per ADS data and percentages)

**Three Months Ended**

**May 31,**

**2025**

**2026**

**Pct. Change**

Net revenues

574,999

758,377

31.9 %

Income from operations

14,346

137,204

856.4 %

Non-GAAP income from operations

25,109

148,742

492.4 %

Net income attributable to TAL

31,282

408,007

1,204.3 %

Non-GAAP net income attributable to TAL

42,045

419,545

897.8 %

Net income per ADS attributable to TAL – basic

0.05

0.74

1,328.7 %

Net income per ADS attributable to TAL – diluted

0.05

0.73

1,334.5 %

Non-GAAP net income per ADS attributable to TAL – basic

0.07

0.76

993.0 %

Non-GAAP net income per ADS attributable to TAL – diluted

0.07

0.75

997.4 %

"Our first quarter performance in fiscal year 2027 reflects solid execution across our businesses," said Alex Peng, TAL's President and Chief Financial Officer. "Through ongoing refinement of our offerings and operational improvements, we've made steady progress in enhancing learning experiences while reinforcing our foundation for sustainable, high-quality growth."

Mr. Peng added, "We remain focused on executing with discipline and operating with efficiency across our organization. Our goal is to strengthen our operating model and deliver value to our shareholders."

**Financial Results for the First Quarter of Fiscal Year 2027**

***Net Revenues***

In the first quarter of fiscal year 2027, TAL reported net revenues of US$758.4 million, representing a 31.9% increase from US$575.0 million in the first quarter of fiscal year 2026.

***Operating Costs and Expenses***

In the first quarter of fiscal year 2027, operating costs and expenses were US$621.2 million, representing a 10.8% increase from US$560.7 million in the first quarter of fiscal year 2026. Non-GAAP operating costs and expenses, which excluded share-based compensation expenses, were US$609.6 million, representing a 10.9% increase from US$549.9 million in the first quarter of fiscal year 2026.

Cost of revenues increased by 23.3% to US$320.2 million from US$259.6 million in the first quarter of fiscal year 2026. Non-GAAP cost of revenues, which excluded share-based compensation expenses, increased by 23.5% to US$319.7 million, from US$258.9 million in the first quarter of fiscal year 2026.

Selling and marketing expenses decreased by 4.8% to US$172.0 million from US$180.8 million in the first quarter of fiscal year 2026. Non-GAAP selling and marketing expenses, which excluded share-based compensation expenses, decreased by 4.7% to US$169.3 million, from US$177.7 million in the first quarter of fiscal year 2026.

General and administrative expenses increased by 7.2% to US$129.0 million from US$120.3 million in the first quarter of fiscal year 2026. Non-GAAP general and administrative expenses, which excluded share-based compensation expenses, increased by 6.6% to US$120.7 million, from US$113.2 million in the first quarter of fiscal year 2026.

Total share-based compensation expenses allocated to the related operating costs and expenses increased by 7.2% to US$11.5 million in the first quarter of fiscal year 2027 from US$10.8 million in the same period of fiscal year 2026.

***Gross Profit***

Gross profit increased by 38.9% to US$438.2 million from US$315.4 million in the first quarter of fiscal year 2026. The gross margin for the first quarter of fiscal year 2027 was 57.8%, compared to 54.9% in the same period of the prior year.

***Income from Operations***

Income from operations was US$137.2 million in the first quarter of fiscal year 2027, compared to income from operations of US$14.3 million in the first quarter of fiscal year 2026. Non-GAAP income from operations, which excluded share-based compensation expenses, was US$148.7 million, compared to Non-GAAP income from operations of US$25.1 million in the same period of the prior year.

***Other Income, net***

Other income was US$405.2 million for the first quarter of fiscal year 2027, compared to other income of US$9.5 million in the first quarter of fiscal year 2026. The change in other income for the first quarter was mainly driven by fluctuations in the fair value of certain investments.

***Income Tax Expense***

Income tax expense was US$143.7 million in the first quarter of fiscal year 2027, compared to US$11.1 million of income tax expense in the first quarter of fiscal year 2026.

***Net Income Attributable to*** ***TAL Education Group*** 

Net income attributable to TAL was US$408.0 million in the first quarter of fiscal year 2027, compared to net income attributable to TAL of US$31.3 million in the first quarter of fiscal year 2026. Non-GAAP net income attributable to TAL, which excluded share-based compensation expenses, was US$419.5 million, compared to Non-GAAP net income attributable to TAL of US$42.0 million in the first quarter of fiscal year 2026.

***Basic and Diluted Net Income per ADS***

Basic and diluted net income per ADS were US$0.74 and US$0.73, respectively, in the first quarter of fiscal year 2027. Non-GAAP basic and diluted net income per ADS, which excluded share-based compensation expenses, were US$0.76 and US$0.75, respectively, in the first quarter of fiscal year 2027.

***Cash Flow*** 

Net cash provided by operating activities for the first quarter of fiscal year 2027 was US$478.2 million.

***Cash, Cash Equivalents, and Short-Term Investments***

As of May 31, 2026, the Company had US$1,641.6 million of cash and cash equivalents and US$1,232.9 million of short-term investments, compared to US$1,523.9 million of cash and cash equivalents and US$1,715.4 million of short-term investments as of February 28, 2026.

***Deferred Revenue***

As of May 31, 2026, the Company's deferred revenue balance was US$1,219.0 million, compared to US$882.2 million as of February 28, 2026.

***Extension of Share Repurchase Program by the Company***

The Company's board of directors (the "Board") has authorized to extend the Company's share repurchase program (the "Share Repurchase Program") initially launched in July 2025 by 12 months. Pursuant to the extended Share Repurchase Program, the Company may repurchase up to approximately US$393.7 million of its common shares through July 28, 2027. The share repurchases may be effected from time to time on 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 will be implemented in accordance with applicable rules and regulations. Between April 23, 2026 and July 28, 2026, the Company has repurchased 1,226,033 common shares at an aggregate consideration of approximately US$40.7 million.

**Conference Call**

The Company will host a conference call and live webcast to discuss its financial results for the first quarter of fiscal year 2027 ended May 31, 2026 at 8:00 a.m. U.S. Eastern Time on July 30, 2026 (8:00 p.m. Beijing Time on July 30, 2026).

Please note that you will need to pre-register for conference call participation at  
https://dpregister.com/sreg/10210370/1046a47658e.

Upon registration, you will receive an email containing participant dial-in numbers, passcode, and a unique access PIN. This information will allow you to gain immediate access to the call. Participants may pre-register at any time, including up to and after the call start time.

A live and archived webcast of the conference call will be available on the Investor Relations section of TAL's website at https://ir.tal.com/.

**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, TAL Education Group's strategic and operational plans contain forward-looking statements. The Company may also make written or oral forward-looking statements in its reports filed with, 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 the Company'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 continue to provide competitive learning services and products; the Company's ability to continue to recruit, train and retain talents; the Company's ability to improve the content of current course offerings and develop new courses; the Company's ability to maintain and enhance its brand; the Company's ability to maintain and continue to improve its teaching results; and the Company's ability to compete effectively against its competitors. Further information regarding these and other risks is included in the Company's reports filed with, or furnished to the U.S. Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of this press release, and TAL Education Group undertakes no duty to update such information or any forward-looking statement, except as required under applicable law.

**About TAL Education Group**

TAL Education Group is a smart learning solutions provider in China. The acronym "TAL" stands for "Tomorrow Advancing Life", which reflects our vision to promote top learning opportunities for students through both high-quality teaching and content, as well as leading edge application of technology in the education experience. TAL Education Group offers comprehensive learning solutions to students from all ages through diversified class formats. Our learning solutions mainly cover enrichment learnings programs and some academic subjects in and out of China. Our ADSs trade on the New York Stock Exchange under the symbol "TAL".

**About Non-GAAP Financial Measures**

In evaluating its business, TAL considers and uses the following measures defined as non-GAAP financial measures by the SEC as supplemental metrics to review and assess its operating performance: non-GAAP cost of revenues, non-GAAP selling and marketing expenses, non-GAAP general and administrative expenses, non-GAAP operating costs and expenses, non-GAAP income from operations, non-GAAP net income attributable to TAL, non-GAAP basic and non-GAAP diluted net income per ADS. To present each of these non-GAAP measures, the Company excludes share-based compensation expenses. 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 presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of non-GAAP measures to the most comparable GAAP measures" set forth at the end of this release.

TAL believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding share-based compensation expenses that may not be indicative of its operating performance from a cash perspective. TAL believes that both management and investors benefit from these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to TAL's historical performance and liquidity. TAL computes its non-GAAP financial measures using the same consistent method from quarter to quarter and from period to period. TAL believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using non-GAAP measures is that these non-GAAP measures exclude share-based compensation charges that have been and will continue to be for the foreseeable future a significant recurring expense in the Company's business. Management compensates for these limitations by providing specific information 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.

**For further information, please contact:**

Jackson Ding  
Investor Relations  
TAL Education Group  
Tel: +86 10 5292 6669-8809  
Email: ir@tal.com

**TAL EDUCATION GROUP**

**UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS**

**(In thousands of U.S. dollars)**

**As of**

**February 28,**

**2026**

**As of**

**May 31,** 

**2026**

**ASSETS**

**Current assets**

Cash and cash equivalents

$ 1,523,879

$ 1,641,620

Restricted cash, current

227,551

274,497

Short-term investments

1,715,446

1,232,945

Inventories, net

143,326

184,821

Amounts due from related parties, current

46

30

Prepaid expenses and other current assets

232,870

355,915

**Total current assets**

3,843,118

3,689,828

Restricted cash, non-current

34,608

31,538

Property and equipment, net

500,710

508,778

Deferred tax assets

3,170

2,323

Rental deposits

28,058

29,736

Intangible assets, net

45,975

44,905

Goodwill

45,545

45,545

Land use rights, net

189,779

191,219

Amounts due from related parties, non-current

134

195

Long-term investments

828,249

1,736,551

Long-term prepayments and other non-current assets

37,216

87,966

Operating lease right-of-use assets

379,727

399,108

**Total assets**

$ 5,936,289

$ 6,767,692

**LIABILITIES AND EQUITY**

**Current liabilities**

Accounts payable

$ 152,513

$ 139,317

Deferred revenue, current

832,839

1,176,497

Amounts due to related parties, current

97

93

Accrued expenses and other current liabilities

672,344

746,663

Operating lease liabilities, current

109,393

118,807

**Total current liabilities**

1,767,186

2,181,377

Deferred revenue, non-current

49,353

42,528

Deferred tax liabilities

67,981

178,309

Operating lease liabilities, non-current

278,083

286,713

**Total liabilities**

2,162,603

2,688,927

**Equity**

Class A common shares

156

141

Class B common shares

49

49

Treasury stock

(20)

(6)

Additional paid-in capital

3,694,418

3,565,293

Statutory reserve

216,638

212,644

(Accumulated deficit)/retained earnings

(130,428)

281,573

Accumulated other comprehensive (loss)/income

(6,376)

19,903

**Total TAL Education Group's equity**

3,774,437

4,079,597

Non-controlling interests

(751)

(832)

**Total equity**

3,773,686

4,078,765

**Total liabilities and equity**

$ 5,936,289

$ 6,767,692

**TAL EDUCATION GROUP**

**UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS**

**(In thousands of U.S. dollars, except share, ADS, per share and per ADS data)**

**For the Three Months Ended**

**May 31,**

**2025**

**2026**

**Net revenues**

$ 574,999

$ 758,377

Cost of revenues (note 1)

259,571

320,178

Gross profit

315,428

438,199

**Operating expenses (note 1)**

Selling and marketing

180,773

172,027

General and administrative (note 2)

120,309

128,968

Total operating expenses

301,082

300,995

Income from operations

14,346

137,204

Interest income, net

18,722

9,905

Other income, net

9,472

405,213

Income before income tax expense and loss from equity  
 method investments

42,540

552,322

Income tax expense

(11,078)

(143,658)

Loss from equity method investments

(255)

(739)

**Net income**

31,207

407,925

Add: Net loss attributable to non-controlling interests

75

82

**Total net income attributable to TAL Education Group**

$ 31,282

$ 408,007

**Net income per common share**

 Basic

$ 0.15

$ 2.21

Diluted

0.15

2.19

**Net income per ADS (note 3)**

Basic

$ 0.05

$ 0.74

Diluted

0.05

0.73

Weighted average shares used in calculating net income per  
 common share

Basic

201,980,675

184,395,920

Diluted

204,880,688

186,286,428

Note1: Share-based compensation expenses are included in the operating costs and expenses as follows: 

**For the Three Months**

**Ended May 31,**

**2025**

**2026**

Cost of revenues

$ 622

$ 500

Selling and marketing expenses

3,071

2,727

General and administrative expenses

7,070

8,311

Total

$ 10,763

$ 11,538

Note 2: GAAP and non-GAAP general and administrative expenses include government subsidies,  
which were separately presented in our historical financial statements. This reclassification has been  
made to conform to the presentation for the current period, and such reclassification had no impact on  
the Group's previously reported income from operations, net income, shareholders' equity, or cash  
flows.

Note 3: Three ADSs represent one Class A common share.

**TAL EDUCATION GROUP**

**UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF**

**COMPREHENSIVE INCOME**

**(In thousands of U.S. dollars)**

**For the Three Months Ended**

**May 31,**

**2025**

**2026**

**Net income**

$ 31,207

$ 407,925

Other comprehensive income, net of tax

15,987

26,280

**Comprehensive income**

47,194

434,205

Add: Comprehensive loss attributable to non-controlling  
 interests

67

81

**Comprehensive income attributable to TAL Education  
 Group**

$ 47,261

$ 434,286

**TAL EDUCATION GROUP**

**UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF**

**CASH FLOWS**

**(In thousands of U.S. dollars)**

**For the Three Months Ended**

**May 31,**

**2025**

**2026**

Net cash provided by operating activities

$ 347,785

$ 478,236

Net cash used in investing activities

(527,309)

(184,109)

Net cash used in financing activities

(254,104)

(140,664)

Effect of exchange rate changes

283

8,154

Net (decrease)/increase in cash, cash equivalents and restricted cash

(433,345)

161,617

**Cash, cash equivalents and restricted cash at the beginning of  
 period**

1,991,731

1,786,038

**Cash, cash equivalents and restricted cash at the end of period**

$ 1,558,386

$ 1,947,655

**TAL EDUCATION GROUP**

**Reconciliation of Non-GAAP Measures to the Most Comparable GAAP Measures**

**(In thousands of U.S. dollars, except share, ADS, per share and per ADS data)**

**For the Three Months** 

**Ended May 31,**

**2025**

**2026**

**Cost of revenues**

$ 259,571

$ 320,178

Share-based compensation expenses in cost of revenues

622

500

**Non-GAAP cost of revenues**

258,949

319,678

**Selling and marketing expenses**

180,773

172,027

Share-based compensation expenses in selling and marketing expenses

3,071

2,727

**Non-GAAP selling and marketing expenses**

177,702

169,300

**General and administrative expenses (note 2)**

120,309

128,968

Share-based compensation expenses in general and administrative expenses

7,070

8,311

**Non-GAAP general and administrative expenses (note 2)**

113,239

120,657

**Operating costs and expenses**

560,653

621,173

Share-based compensation expenses in operating costs and expenses

10,763

11,538

**Non-GAAP operating costs and expenses**

549,890

609,635

**Income from operations**

14,346

137,204

Share based compensation expenses

10,763

11,538

**Non-GAAP income from operations**

25,109

148,742

**Net income attributable to TAL Education Group**

31,282

408,007

Share based compensation expenses

10,763

11,538

**Non-GAAP net income attributable to TAL Education Group (note 4)**

$ 42,045

$ 419,545

**Net income per ADS**

Basic

$ 0.05

$ 0.74

Diluted 

0.05

0.73

**Non-GAAP net income per ADS** 

Basic

$ 0.07

$ 0.76

Diluted 

0.07

0.75

**ADSs used in calculating net income per ADS**

Basic

605,942,025

553,187,760

Diluted

614,642,064

558,859,284

**ADSs used in calculating Non-GAAP net income per ADS**

Basic

605,942,025

553,187,760

Diluted

614,642,064

558,859,284

Note 4: The tax effect of share-based compensation expenses was immaterial in the first quarter of fiscal year  
2027.

SOURCE TAL Education Group

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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**