4QFY26 Review: EDU Core to Take the Wheel on FY27 Margin Expansion; Upsized Dividend Payout a Positive Surprise; Buy EDU

研报英文原文证据摘录

4QFY26 Review: EDU Core to Take the Wheel on FY27 Margin Expansion; Upsized Dividend Payout a Positive Surprise; Buy EDU

Equity Research

30 July 2026 | 1:44AM HKT

NEW ORIENTAL (EDU/9901.HK) & EAST BUY (1797.HK)

4QFY26 Review: EDU Core to Take the Wheel on FY27 Margin

Expansion; Upsized Dividend Payout a Positive Surprise; Buy EDU

New Oriental’s 4QFY26 results report (First Take) reflected a few key themes: 1) Timothy Zhao

+852-2978-2673 |

Above-expected FY27 revenue guidance (+16% yoy at the midpoint) remains timothy.zhao@gs.com

Goldman Sachs (Asia) L.L.C.

conservative from management’s perspective, driven by sustained K-12

Ronald Keung, CFAtutoring/PRC test prep revenue growth (vs. +15%/14% yoy in FY26 in Rmb terms, +852-2978-0856 |

respectively) against a more favorable competitive environment, stable overseas test ronald.keung@gs.comGoldman Sachs (Asia) L.L.C.

prep and consulting revenue (vs. -1% yoy in FY26), and robust East Buy revenue Eunice Liu

growth (vs. +32% yoy in FY26 as per GSe); 2) non-GAAP OPM expansion on track in +852-2978-7472Goldman Sachs (Asia)| eunice.liu@gs.comL.L.C.

FY27 on the group level, driven by margin expansion across almost all business

segments within EDU core, as EDU controls the pace of learning center expansion

and its cost control initiatives enters Phase II (another c.US$100mn savings from

organization restructuring, AI-enabled efficiency, and business synergy due to New

Oriental Home initiative) from Phase I (c.US$100mn savings from reduced rental rate,

headcount optimization and marketing efficiency); 3) up to US$500mn shareholder

return commitment (5-6% of market cap) including upsized cash dividend from

c.US$200mn in FY26 to US$300mn in FY27.

GS takes: We believe that the faster-than-expected revenue growth in FY27E is