TAL Education Group (TAL) shares surged 5.05% in pre-market trading on Thursday, following the release of its first-quarter fiscal 2026 financial results and the announcement of a significant share repurchase program. The Chinese education technology company reported better-than-expected earnings and unveiled plans for a $600 million share buyback, signaling management's confidence in the company's future prospects.

For the quarter ended May 31, 2025, TAL Education reported adjusted earnings per American Depositary Share (ADS) of $0.07, surpassing analysts' expectations of $0.04 by an impressive 75%. This represents a 40% increase from the same period last year. The company's net income reached $31.3 million, with operating income standing at $14.3 million. Despite the strong bottom-line performance, quarterly revenue came in at $575 million, slightly below the consensus estimate of $584.2 million. However, this still marks a robust 38.83% year-over-year growth compared to $414.187 million in the prior-year quarter.

Adding to investor optimism, TAL Education's board of directors authorized a $600 million share repurchase plan on July 28. This move typically suggests that management believes the company's stock is undervalued and demonstrates a commitment to enhancing shareholder value. The combination of strong earnings growth and the buyback announcement appears to be driving the pre-market rally, as investors react positively to TAL's financial health and future outlook in the competitive Chinese education sector.