Why New Oriental Education & Technology Group (EDU) Is Up 9.4% After Q4 Revenue Beat and Capital Return Plan

• New Oriental Education & Technology Group recently reported an 18.7% increase in total net revenue for Q4 FY2025, fueled by strong results in overseas test preparation, integrated tourism businesses, and new AI-powered learning products.
• The company also announced a three-year shareholder return plan, committing at least 50% of net income to dividends or share repurchases, signaling a heightened focus on capital returns and ongoing innovation.
• We'll examine how the ambitious capital return plan and AI-driven product launches may influence New Oriental's investment prospects.

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New Oriental Education & Technology Group Investment Narrative Recap

The core belief underpinning a position in New Oriental Education & Technology Group is confidence in the company's ability to innovate, diversify revenue streams, and maintain steady growth despite competitive and regulatory pressures. The recent 18.7% revenue surge and shareholder return announcement are positive, but do not fully resolve near-term risks tied to volatility in overseas study demand; the largest short-term catalyst remains sustained momentum in new AI-powered learning products, while macroeconomic headwinds and regulatory changes pose the greatest risk. The company’s new three-year plan to allocate at least 50% of net income to dividends and share repurchases stands out. This move directly addresses shareholder interests, adds support for the share price, and provides a tangible catalyst alongside ongoing investments in AI-driven education solutions and non-academic auxiliary businesses. Still, investors should also pay close attention to potential pressure from ongoing macroeconomic and policy changes, particularly as...

Read the full narrative on New Oriental Education & Technology Group (it's free!)

New Oriental Education & Technology Group's outlook anticipates $6.5 billion in revenue and $628.5 million in earnings by 2028. This is based on a projected annual revenue growth rate of 9.7% and a $256.8 million increase in earnings from the current $371.7 million.

Uncover how New Oriental Education & Technology Group's forecasts yield a $57.53 fair value, in line with its current price.

Exploring Other Perspectives

Four fair value estimates from the Simply Wall St Community span US$38.90 to US$128.76, reflecting a wide range of private investor outlooks on New Oriental. Amid this diversity, ongoing macroeconomic headwinds and regulatory uncertainty remain central themes you should consider when comparing these perspectives.

Explore 4 other fair value estimates on New Oriental Education & Technology Group - why the stock might be worth over 2x more than the current price!

Build Your Own New Oriental Education & Technology Group Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your New Oriental Education & Technology Group research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free New Oriental Education & Technology Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate New Oriental Education & Technology Group's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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