CMBI said in a report that New Oriental Education & Technology Group, Inc. Sponsored ADR representing 10 Ordinary Share (Cayman Islands) (EDU.US) announced its results for 4QFY26. Net revenue rose 23% YoY to USD1.53 billion, 4% above market expectations, mainly driven by strong growth in its core education business. Non-GAAP operating profit increased 35% YoY to USD110 million, 7% above market expectations, benefiting from better-than-expected revenue and improved operating efficiency. For FY26, net revenue and non-GAAP operating profit increased 16% and 33% YoY to USD5.66 billion and USD740 million, respectively.

Looking ahead to FY27, management expects net revenue to grow 14% to 18% YoY to between USD6.45 billion and USD6.68 billion, higher than the market forecast of USD6.27 billion. Management also expects profit margin to improve further in FY27, supported by enhanced operating efficiency and operating leverage. The report noted that the company's focus on teaching quality has delivered results, improving student retention, increasing utilization of teaching centers and accelerating revenue growth.

CMBI raised its FY27-FY28 non-GAAP operating profit forecasts by 8% to 9%. Based on the sum-of-the-parts valuation method, the broker lifted its TP from USD82 to USD90 and maintained its "Buy" rating. (ad/u)(Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)