New Oriental Education & Technology (EDU) saw its stock price surge by 5.39% during the intraday session, driven by positive investor sentiment following the release of its Q1 FY2026 financial results and strategic initiatives.

The company reported a 6.1% year-on-year increase in net revenue to US$1.523 billion, with operating profit rising 6.0% to US$311 million. While attributable net profit declined slightly by 1.9%, analysts highlighted a 1 percentage point improvement in adjusted operating margin, primarily due to the strong performance of its subsidiary Oriental Selection.

Investors were also encouraged by the company's advancements in generative AI applications, such as automated course material generation and AI-assisted grading, which are expected to enhance operational efficiency and content quality. Additionally, New Oriental announced a three-year shareholder return plan with a dividend payout ratio of at least 50%, signaling management's confidence in sustained profitability.