According to a research report published by Haitong International, New Oriental's results for the first quarter of the 2027 fiscal year were mixed. The group's revenue rose 23% year on year to US$1,874 billion, higher than market expectations of 0.9%; non-GAAP operating profit of US$407 million, profit margin was 21.7%, down 0.2 percentage points year on year, lower than market expectations of 1.6% and 0.6 percentage points, respectively. Non-GAAP net profit rose 16.1% year over year to US$301 million, lower than market expectations of 1%. Deferred revenue increased 11.2% year over year to $2.1 billion, and net cash increased 12% year over year to $5.7 billion. The bank estimates that Oriental Select's revenue will increase 87% year over year in the first quarter of fiscal year 2027 and expect a 115% year-on-year increase in the second quarter. Despite the decline in the Group's profit margin, the profit margins of Core Education and Oriental Selection expanded year-on-year, and there is still room for improvement in the future. The bank maintained its “better than the market” rating. The target price for US stocks fell from $70 to $66, which is equivalent to 15 times the projected price-earnings ratio for the 2027 fiscal year. Non-GAAP net profit for the 2027 and 2028 fiscal years is expected to be 680 million and 803 million US dollars respectively, up 19% and 18%, respectively. It believes that the fundamental improvement narrative is still complete.

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