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On October 29, New Oriental Education & Technology (NYSE: EDU) saw its share price under heavy pressure, falling more than 14% at one point during the session to HK$36.72, marking a new low since early July this year. As of press time, turnover exceeded HK$400 million.

On the news front, after market close on October 28, New Oriental Education & Technology (NYSE: EDU) disclosed its unaudited results for the first fiscal quarter ended August 31, 2026: net revenue of US$1.874 billion, up 23.1% year-on-year; operating profit of US$375 million, up 20.5% year-on-year; net profit attributable to shareholders of US$273 million, up 13.5% year-on-year.

The revenue growth rate exceeded the company's previous full-year guidance range, but profit growth lagged behind revenue growth. Major banks concentrated their expectation adjustments following the earnings release.

Goldman Sachs noted that New Oriental Education & Technology (NYSE: EDU) and NEW ORIENTAL-S (SEHK: 09901) still have solid revenue momentum, but profit margins came in weaker than expected. It cut its 12-month target price for New Oriental Education & Technology (NYSE: EDU) to HK$54 while maintaining a "Buy" rating; the reasons for the downgrade include increased social security contributions for the core education business, slowing cost control benefits, and NEW ORIENTAL-S (SEHK: 09901) increasing marketing investment in livestreaming and shelf channels.

Citi lowered its net profit forecast for New Oriental Education & Technology (NYSE: EDU) and slashed its target price by nearly 17%. JPMorgan took a relatively positive view, believing the sharp share price drop was an "overreaction by the market," maintaining an "Overweight" rating and slightly lowering its ADR target price from US$80 to US$77, noting that management reiterated its fiscal 2027 guidance, signaling accelerating growth in the next fiscal quarter, with margin pressure still manageable.

On the shareholder return front, New Oriental Education & Technology (NYSE: EDU) disclosed on the same day that the US$300 million authorization under its 2026 share buyback program had been fully utilized, with approximately 56.2 million common shares repurchased cumulatively from the open market; the board also approved a total cash dividend of approximately US$300 million for fiscal 2027 and established a new 2027 share buyback program of up to US$200 million.