TAL

Covista Inc. CVSA reported exceptional fourth-quarter fiscal 2026 (ended June 30, 2026) results with adjusted earnings and revenues topping the Zacks Consensus Estimate and growing year over year.Growth was broad-based across all three segments, while operating efficiencies supported profitability. Total student enrollment increased 8.4% to 99,472, marking the 12th straight quarter of year-over-year growth, with Walden reaching its highest enrollment in university history.CVSA stock inched up 0.8% during yesterday’s after-hours trading session. Adjusted earnings were $2.09 per share, up 25.9% year over year and 10% above the Zacks Consensus Estimate of $1.90.Revenues increased 9.7% to $501.4 million year over year and beat the consensus mark of $485 million by 3.4%. Covista Inc. price-consensus-eps-surprise-chart | Covista Inc. Quote Adjusted EBITDA rose 15.2% year over year to $126.9 million, while adjusted EBITDA margin expanded 120 basis points to 25.3%. Management attributed the improvement to revenue growth and operational efficiencies, partly offset by elevated investment in strategic growth initiatives.Adjusted operating income increased 15.3% to $100.9 million, and adjusted operating margin improved to 20.1% from 19.1%. Adjusted net income rose to $72.8 million from $62.4 million. Chamberlain revenues rose 3.2% to $190.2 million. Segment adjusted EBITDA increased 3.8% year over year to $46.8 million. Chamberlain students increased 1.6% to 39,501, the segment's second straight quarter of positive total enrollment growth. Its pre-licensure BSN program posted a 16th straight quarter of year-over-year enrollment growth, while management cited targeted operational enhancements as supporting new enrollment and future trends.Walden University’s revenues increased 15.7% to $210.8 million as healthcare and non-healthcare programs supported growth. Adjusted EBITDA of the segment grew 32.3% to $69.7 million compared with the year-ago quarter. Walden University enrollment rose 14% to 54,851, its 12th straight quarter of year-over-year growth and highest growth rate of fiscal 2026.Medical and Veterinary revenues advanced 10.7% to $100.3 million. Segment adjusted EBITDA increased year over year by 12.3% to $22.5 million. Enrollment increased 7.3% to 5,120, with growth led by Medical and new-enrollment acceleration at both Medical and Veterinary. During the full fiscal year, revenues of $1.95 billion grew 9.3% year over year.Adjusted EBITDA was up 13.5% to $521.7 million from $459.7 million reported in fiscal 2025. Adjusted EBITDA margin expanded year over year to 26.7% from 25.7%.Adjusted EPS was $8.25, up year over year by 23.7% from $6.67 reported in fiscal 2025. Chamberlain and Advocate Health launched a nursing collaboration combining scholarships, clinical immersion, employment pathways and loan repayment support. Chamberlain also plans new campuses in Cincinnati and Salt Lake City, with classes expected to begin in the first half of fiscal 2027.Walden programs launched heading into the 2026 academic year enrolled more than 1,700 students, and four additional programs began enrolling after quarter-end. Covista also added nine AI professional certificates with Google Cloud during Q4; more than 9,000 learners have enrolled across its 12 available AI credentials. These initiatives align with Purpose at Scale, which emphasizes operational excellence, platform extension, employer integration and technology. Fiscal 2026 free cash flow rose 38.7% to $393.1 million. Net cash provided by operating activities from continuing operations increased to $470.8 million from $333.7 million, while capital expenditures rose to $77.7 million from $50.3 million. Covista ended June with $406.3 million in cash and cash equivalents and net leverage of 0.5x.The company repurchased $238 million of shares in fiscal 2026, leaving $661.8 million under its $750 million authorization. It also repaid $50 million of Term Loan B debt and refinanced outstanding debt while increasing revolving credit capacity. For fiscal 2027, Covista expects revenues of $2.05-$2.09 billion, representing roughly 5-7% growth. Adjusted earnings are projected at $8.90-$9.15 per share, implying about 8-11% growth year over year.Management expects revenue growth to be stronger in the second half than in the first half due to Walden shifting one academic week from the second quarter into the third quarter. It also targets 0-50 basis points of adjusted EBITDA margin expansion, with the capital expenditure run rate slightly above annualized fourth-quarter fiscal 2026 spending and continued strong cash flow. Covista currently carries a Zacks Rank #3 (Hold). TAL Education Group TAL presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The company has a trailing four-quarter earnings surprise of 210%, on average. The Zacks Consensus Estimate for TAL Education’s fiscal 2027 sales indicates growth of 22.3% while EPS reflects a decline of 14.1% from the year-ago period’s levels.American Public Education, Inc. APEI currently carries a Zacks Rank #2 (Buy). The company has a trailing four-quarter earnings surprise of 157.7%, on average. The Zacks Consensus Estimate for American Public’s 2026 sales and EPS indicates growth of 90.4% and 6.5%, respectively, from the year-ago period’s levels. The combination of a positive Earnings ESP and a Zacks Rank of 1, 2 or 3 increases the odds of an earnings beat.Strategic Education, Inc. STRA currently has an Earnings ESP of +2.38% and a Zacks Rank of 3.Strategic Education’s earnings beat estimates in two of the last four quarters and missed on the remaining two occasions, the average surprise being 9%. The company’s earnings for the third quarter of 2026 are expected to grow 16.6% year over year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Covista Inc. (CVSA) : Free Stock Analysis Report American Public Education, Inc. (APEI) : Free Stock Analysis Report Strategic Education Inc. (STRA) : Free Stock Analysis Report TAL Education Group (TAL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in TAL Education Group? Here are five stocks we like better. TAL reported strong first-quarter fiscal 2027 results: Revenue rose 25% year over year to RMB5.19 billion, while non-GAAP operating income jumped 492% and the operating margin expanded to 19.6%. Non-GAAP net income reached $420 million, up from $42 million a year earlier. Offline Peiyou programs remained the largest growth driver, delivering double-digit growth with retention above 80%. TAL operates more than 600 learning centers across 44 mainland Chinese cities and select international markets. Learning-device revenue and profitability improved, with weekly active devices exceeding 2 million, though management expects competition, consumer sentiment and higher component costs to keep the market volatile. TAL also extended its share-repurchase program, authorizing up to $393.7 million in buybacks through July 2027. Talos Energy: Time to Take a Plunge Ahead of New CEO Appointment? TAL Education Group (NYSE:TAL) reported first-quarter fiscal 2027 revenue growth and a substantial improvement in profitability, supported by its offline Peiyou learning programs, learning-device business and lower sales and marketing expenses. The company reported revenue of RMB5.19 billion for the quarter, up 25% year over year in RMB terms. Management cited different U.S. dollar revenue figures during the call: President and Chief Financial Officer Alex Peng said net revenue was $758 million, while Deputy Chief Financial Officer Jackson Ding cited $658 million. Both figures were associated with RMB5.19 billion and 32% year-over-year growth in U.S. dollar terms. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now Top 4 Stocks With Notable Insider Buying Non-GAAP income from operations rose 492% year over year to $149 million, while the non-GAAP operating margin increased to 19.6% from 4.4% a year earlier. Net income attributable to TAL was $408 million, compared with $31 million in the prior-year period, and non-GAAP net income attributable to TAL reached $420 million, up from $42 million. Peng said the company’s offline Peiyou learning programs continued to post healthy growth, with the business delivering double-digit year-over-year growth during the quarter. Peiyou remains TAL’s largest revenue contributor, Ding said. → Microsoft Just Flipped the AI Spending Narrative Overnight TAL attributed the performance to steady demand, service quality, user recognition and its network of learning centers. The company operates in 44 cities in mainland China and select international markets, with more than 600 learning centers in total. Peiyou retention remained above 80% in the first quarter, consistent with the prior year, Peng said. The company is continuing to expand its learning-center network at what management described as a measured pace, focusing on local demand, user receptivity, organizational capabilities and business health. → Carrier Earnings Could Send the Stock to a New All-Time High Management said it was strengthening classroom technology, including its dual smart large- and small-screen system. Peng said the smaller screens allow students to participate in interactive learning games, earn points and record performance throughout lessons. Looking ahead, Peng said TAL expects offline Peiyou programs to grow at a healthy pace over the longer term, citing demand for offline learning and a fragmented market. TAL said revenue from learning devices increased year over year, while the business also improved its bottom-line performance. The company launched its T6 series of learning tablets in July, featuring upgrades to AI capabilities, content and hardware. The T6 series includes an AI learning companion for recorded courses that offers pre-class guidance, real-time feedback, post-class summaries, question-and-answer support, diagnostics, study plans and AI-generated notes, according to management. Weekly active learning devices exceeded 2 million during the quarter. The weekly active rate was around 80%, and users averaged about one hour of daily active usage per device, Peng said. Management acknowledged that the learning-device market faces heightened competition, changing consumer sentiment and rising component costs, including higher memory-chip costs. TAL said it has responded by optimizing inventory, streamlining stock-keeping units and refining its product portfolio. The company expects market volatility to persist through fiscal 2027. Cost of revenue rose 23% year over year to $320 million, while gross profit increased 39% to $438 million. Gross margin expanded to 57.8% from 54.9% a year earlier. Selling and marketing expense declined 5% to $172 million, falling to 22% of revenue from 31% in the prior-year period. General and administrative expense increased 7% to $129 million but declined as a share of revenue to 16% from 20%. As of May 31, 2026, TAL held approximately $1.6 billion in cash and cash equivalents, $1.2 billion in short-term investments and $306 million in restricted cash. Deferred revenue totaled approximately $1.2 billion, while operating cash flow was $478 million for the quarter. Ding said increased valuations of some investment holdings were the primary driver of higher other income during the period, cautioning that such gains were driven by market movements and may not recur. The board extended TAL’s share-repurchase program for 12 months in July. The company may repurchase up to approximately $393.7 million of common shares through July 28, 2027. Between April 23 and July 28, TAL repurchased approximately 1.2 million shares for about $41 million. For fiscal 2027, management said it expects revenue growth to moderate as the business scales, while continuing to pursue improved operating margin, disciplined execution and sustainable profitability. TAL Education Group is a leading provider of after-school tutoring services in China, specializing in K-12 academic instruction. The company offers a range of programs designed to help primary and secondary school students strengthen their core competencies in subjects such as mathematics, English, Chinese language and science. TAL leverages both in-person learning centers and digital platforms to deliver its curriculum, aiming to support student progress through interactive lessons and personalized study plans. Founded in 2003 and headquartered in Beijing, TAL Education Group has grown into one of China's largest private education firms. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "TAL Education Group Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

BEIJING, July 30, 2026 /PRNewswire/ -- TAL Education Group (NYSE: TAL) ("TAL" or the "Company"), a smart learning solutions provider in China, today announced its unaudited financial results for the first quarter of fiscal year 2027 ended May 31, 2026. Highlights for the First Quarter of Fiscal Year 2027 Net revenues were US$758.4 million, compared to net revenues of US$575.0 million in the same period of the prior year. Income from operations was US$137.2 million, compared to income from operations of US$14.3 million in the same period of the prior year. Non-GAAP income from operations, which excluded share-based compensation expenses, was US$148.7 million, compared to non-GAAP income from operations of US$25.1 million in the same period of the prior year. Net income attributable to TAL was US$408.0 million, compared to net income attributable to TAL of US$31.3 million in the same period of the prior year. Non-GAAP net income attributable to TAL, which excluded share-based compensation expenses, was US$419.5 million, compared to non-GAAP net income attributable to TAL of US$42.0 million in the same period of the prior year. Basic and diluted net income per American Depositary Share ("ADS") were US$0.74 and US$0.73, respectively. Non-GAAP basic and diluted net income per ADS, which excluded share-based compensation expenses, were US$0.76 and US$0.75, respectively. Three ADSs represent one Class A common share. Cash, cash equivalents and short-term investments totaled US$2,874.5 million as of May 31, 2026, compared to US$3,239.3 million as of February 28, 2026. Financial Data——First Quarter of Fiscal Year 2027(In US$ thousands, except per ADS data and percentages) "Our first quarter performance in fiscal year 2027 reflects solid execution across our businesses," said Alex Peng, TAL's President and Chief Financial Officer. "Through ongoing refinement of our offerings and operational improvements, we've made steady progress in enhancing learning experiences while reinforcing our foundation for sustainable, high-quality growth." Mr. Peng added, "We remain focused on executing with discipline and operating with efficiency across our organization. Our goal is to strengthen our operating model and deliver value to our shareholders." Financial Results for the First Quarter of Fiscal Year 2027 Net Revenues In the first quarter of fiscal year 2027, TAL reported net revenues of US$758.4 million, representing a 31.9% increase from US$575.0 million in the first quarter of fiscal year 2026. Operating Costs and Expenses In the first quarter of fiscal year 2027, operating costs and expenses were US$621.2 million, representing a 10.8% increase from US$560.7 million in the first quarter of fiscal year 2026. Non-GAAP operating costs and expenses, which excluded share-based compensation expenses, were US$609.6 million, representing a 10.9% increase from US$549.9 million in the first quarter of fiscal year 2026. Cost of revenues increased by 23.3% to US$320.2 million from US$259.6 million in the first quarter of fiscal year 2026. Non-GAAP cost of revenues, which excluded share-based compensation expenses, increased by 23.5% to US$319.7 million, from US$258.9 million in the first quarter of fiscal year 2026. Selling and marketing expenses decreased by 4.8% to US$172.0 million from US$180.8 million in the first quarter of fiscal year 2026. Non-GAAP selling and marketing expenses, which excluded share-based compensation expenses, decreased by 4.7% to US$169.3 million, from US$177.7 million in the first quarter of fiscal year 2026. General and administrative expenses increased by 7.2% to US$129.0 million from US$120.3 million in the first quarter of fiscal year 2026. Non-GAAP general and administrative expenses, which excluded share-based compensation expenses, increased by 6.6% to US$120.7 million, from US$113.2 million in the first quarter of fiscal year 2026. Total share-based compensation expenses allocated to the related operating costs and expenses increased by 7.2% to US$11.5 million in the first quarter of fiscal year 2027 from US$10.8 million in the same period of fiscal year 2026. Gross Profit Gross profit increased by 38.9% to US$438.2 million from US$315.4 million in the first quarter of fiscal year 2026. The gross margin for the first quarter of fiscal year 2027 was 57.8%, compared to 54.9% in the same period of the prior year. Income from Operations Income from operations was US$137.2 million in the first quarter of fiscal year 2027, compared to income from operations of US$14.3 million in the first quarter of fiscal year 2026. Non-GAAP income from operations, which excluded share-based compensation expenses, was US$148.7 million, compared to Non-GAAP income from operations of US$25.1 million in the same period of the prior year. Other Income, net Other income was US$405.2 million for the first quarter of fiscal year 2027, compared to other income of US$9.5 million in the first quarter of fiscal year 2026. The change in other income for the first quarter was mainly driven by fluctuations in the fair value of certain investments. Income Tax Expense Income tax expense was US$143.7 million in the first quarter of fiscal year 2027, compared to US$11.1 million of income tax expense in the first quarter of fiscal year 2026. Net Income Attributable to TAL Education Group Net income attributable to TAL was US$408.0 million in the first quarter of fiscal year 2027, compared to net income attributable to TAL of US$31.3 million in the first quarter of fiscal year 2026. Non-GAAP net income attributable to TAL, which excluded share-based compensation expenses, was US$419.5 million, compared to Non-GAAP net income attributable to TAL of US$42.0 million in the first quarter of fiscal year 2026. Basic and Diluted Net Income per ADS Basic and diluted net income per ADS were US$0.74 and US$0.73, respectively, in the first quarter of fiscal year 2027. Non-GAAP basic and diluted net income per ADS, which excluded share-based compensation expenses, were US$0.76 and US$0.75, respectively, in the first quarter of fiscal year 2027. Cash Flow Net cash provided by operating activities for the first quarter of fiscal year 2027 was US$478.2 million. Cash, Cash Equivalents, and Short-Term Investments As of May 31, 2026, the Company had US$1,641.6 million of cash and cash equivalents and US$1,232.9 million of short-term investments, compared to US$1,523.9 million of cash and cash equivalents and US$1,715.4 million of short-term investments as of February 28, 2026. Deferred Revenue As of May 31, 2026, the Company's deferred revenue balance was US$1,219.0 million, compared to US$882.2 million as of February 28, 2026. Extension of Share Repurchase Program by the Company The Company's board of directors (the "Board") has authorized to extend the Company's share repurchase program (the "Share Repurchase Program") initially launched in July 2025 by 12 months. Pursuant to the extended Share Repurchase Program, the Company may repurchase up to approximately US$393.7 million of its common shares through July 28, 2027. The share repurchases may be effected from time to time on the open market at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, depending on market conditions and will be implemented in accordance with applicable rules and regulations. Between April 23, 2026 and July 28, 2026, the Company has repurchased 1,226,033 common shares at an aggregate consideration of approximately US$40.7 million. Conference Call The Company will host a conference call and live webcast to discuss its financial results for the first quarter of fiscal year 2027 ended May 31, 2026 at 8:00 a.m. U.S. Eastern Time on July 30, 2026 (8:00 p.m. Beijing Time on July 30, 2026). Please note that you will need to pre-register for conference call participation athttps://dpregister.com/sreg/10210370/1046a47658e. Upon registration, you will receive an email containing participant dial-in numbers, passcode, and a unique access PIN. This information will allow you to gain immediate access to the call. Participants may pre-register at any time, including up to and after the call start time. A live and archived webcast of the conference call will be available on the Investor Relations section of TAL's website at https://ir.tal.com/. Safe Harbor Statement This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, TAL Education Group's strategic and operational plans contain forward-looking statements. The Company may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company's ability to continue to provide competitive learning services and products; the Company's ability to continue to recruit, train and retain talents; the Company's ability to improve the content of current course offerings and develop new courses; the Company's ability to maintain and enhance its brand; the Company's ability to maintain and continue to improve its teaching results; and the Company's ability to compete effectively against its competitors. Further information regarding these and other risks is included in the Company's reports filed with, or furnished to the U.S. Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of this press release, and TAL Education Group undertakes no duty to update such information or any forward-looking statement, except as required under applicable law. About TAL Education Group TAL Education Group is a smart learning solutions provider in China. The acronym "TAL" stands for "Tomorrow Advancing Life", which reflects our vision to promote top learning opportunities for students through both high-quality teaching and content, as well as leading edge application of technology in the education experience. TAL Education Group offers comprehensive learning solutions to students from all ages through diversified class formats. Our learning solutions mainly cover enrichment learnings programs and some academic subjects in and out of China. Our ADSs trade on the New York Stock Exchange under the symbol "TAL". About Non-GAAP Financial Measures In evaluating its business, TAL considers and uses the following measures defined as non-GAAP financial measures by the SEC as supplemental metrics to review and assess its operating performance: non-GAAP cost of revenues, non-GAAP selling and marketing expenses, non-GAAP general and administrative expenses, non-GAAP operating costs and expenses, non-GAAP income from operations, non-GAAP net income attributable to TAL, non-GAAP basic and non-GAAP diluted net income per ADS. To present each of these non-GAAP measures, the Company excludes share-based compensation expenses. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of non-GAAP measures to the most comparable GAAP measures" set forth at the end of this release. TAL believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding share-based compensation expenses that may not be indicative of its operating performance from a cash perspective. TAL believes that both management and investors benefit from these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to TAL's historical performance and liquidity. TAL computes its non-GAAP financial measures using the same consistent method from quarter to quarter and from period to period. TAL believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using non-GAAP measures is that these non-GAAP measures exclude share-based compensation charges that have been and will continue to be for the foreseeable future a significant recurring expense in the Company's business. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables have more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures. For further information, please contact: Jackson DingInvestor RelationsTAL Education GroupTel: +86 10 5292 6669-8809Email: [email protected] View original content:https://www.prnewswire.com/news-releases/tal-education-group-announces-unaudited-financial-results-for-the-first-fiscal-quarter-ended-may-31-2026-302838894.html

This article first appeared on GuruFocus. Net Revenues: $802.4 million, a year-over-year increase of 31.5% in USD terms and 25.8% in RMB terms. Non-GAAP Income from Operations: $82.2 million. Non-GAAP Net Income Attributable to TAL: $254.5 million. Gross Profit: $427.2 million, an increase of 34.5% from the previous year. Gross Margin: 53.2%, compared to 52.0% in the prior year. Selling and Marketing Expenses: $220.9 million, a 1.4% increase from the previous year. General and Administrative Expenses: $133.8 million, a 15.7% increase from the previous year. Cash and Cash Equivalents: $1,523.9 million as of February 28, 2026. Short-term Investments: $1,715.4 million. Deferred Revenue: $882.2 million at the end of the fourth fiscal quarter. Net Cash Used in Operating Activities: $215.0 million for the fourth quarter. Share Repurchase Program: Repurchased 101,371 common shares for approximately $3.3 million. Warning! GuruFocus has detected 4 Warning Sign with TAL. Is TAL fairly valued? Test your thesis with our free DCF calculator. Release Date: April 23, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. TAL Education Group (NYSE:TAL) reported a significant year-over-year increase in net revenues by 31.5% in USD terms and 25.8% in RMB terms for the fourth quarter. The company's offline enrichment programs demonstrated continued growth, supported by a disciplined expansion of their learning center network. TAL's learning device business achieved year-over-year revenue growth, with the introduction of the X5 Ultra Classic device enhancing their product portfolio. The company reported a strong non-GAAP net income attributable to TAL of $254.5 million for the quarter, reflecting improved profitability. TAL's strategic focus on AI and technology enhancements has strengthened user engagement and operational efficiency across their offerings. Despite revenue growth, TAL faces challenges with rising memory costs in the learning devices sector, which is an industry-wide issue. The company's expansion strategy is becoming more conservative, focusing on existing cities rather than aggressive geographical expansion, which may limit rapid growth. TAL's net cash used in operating activities was $215.0 million for the fourth quarter, indicating cash flow challenges. The company experienced a decrease in share-based compensation expenses, which could impact employee motivation and retention. TAL's revenue growth rate is expected to moderate in fiscal year 2027, reflecting a more mature operational baseline and potentially slower expansion. Q: Can you provide more details on the significant increase in income this quarter? A: Jackson Ding, Deputy Chief Financial Officer, explained that the increase was due to a couple of investments in their portfolio experiencing a rise in valuation, resulting in an investment gain recorded under other income. He emphasized that this was a one-time event and should not be used as a baseline for future performance projections. Q: Could you share insights on the recent developments and growth rate of the offline pay use small-class business? A: Alex Peng, President and Chief Financial Officer, noted steady growth in the fourth quarter, driven by higher enrollment and network expansion. The retention rate remained over 80%, reflecting trust in their programs. Looking forward, they plan to consolidate their presence in existing cities rather than aggressive geographical expansion, expecting revenue growth to taper in FY 2027. Q: How did the learning devices business perform this quarter, and what is your strategy in the competitive landscape? A: Alex Peng highlighted year-over-year revenue growth, supported by an expanded product portfolio and increased sales volume. To mitigate memory cost pressures, they optimized inventory turnover and refined their product portfolio. Their strategy focuses on innovation and enhancing user experience to navigate the competitive landscape. Q: What were the primary drivers behind this quarter's bottom-line profitability growth? A: Jackson Ding attributed profitability improvement to steady growth in the pay use small-class business, profitability improvements in other business lines, and unlocking more operating leverage. He emphasized that profitability is a priority, driven by value creation and operating efficiency. Q: Can you provide a breakdown of top-line growth performance across major business lines and the outlook for the coming fiscal year? A: Alex Peng detailed that the offline enrichment business remains the largest revenue driver, with disciplined expansion and service quality improvements. The online enrichment business focuses on interactive learning experiences and AI enhancements. The learning devices business showed revenue growth through product innovation and channel development. Overall, they expect growth rates to moderate with a focus on profitability and operational efficiency. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Net revenues were $802.4 million, up 31.5% YoY, with operating income turning positive at $72.5 million (non‑GAAP operating income $82.2 million) and non‑GAAP net income attributable to TAL of $254.5 million. Other income surged to $275.0 million from $13.0 million due to fair‑value gains on certain investments, which management said was a one‑time event and should not be used as a baseline for future results. Growth was driven by offline Peiyou enrichment programs (retention ~80% and expansion to over 40 cities) while learning devices move to moderate growth with the new X5 Ultra; fiscal 2027 priorities focus on quality growth, an application‑first AI strategy, and disciplined execution. Interested in TAL Education Group? Here are five stocks we like better. Talos Energy: Time to Take a Plunge Ahead of New CEO Appointment? TAL Education Group (NYSE:TAL) reported fourth-quarter fiscal 2026 results showing double-digit revenue growth and a return to operating profitability, supported by continued expansion in its offline enrichment programs and gains from certain investments recorded in other income. President and Chief Financial Officer Alex Peng said the company’s learning services business remained TAL’s largest revenue contributor, with the offline Peiyou enrichment programs delivering continued year-over-year growth in both the fourth quarter and the full fiscal year 2026. Peng said the quarter’s growth in the Peiyou Small Class enrichment business was “primarily driven by higher enrollment,” reflecting both network expansion and efforts to enhance the student learning experience. → STMicronelectronics Sends Industrial Chips Into Overdrive Top 4 Stocks With Notable Insider Buying Peng added that the company has maintained a “disciplined and consistent approach” to expanding its offline learning center network, guided by assessments of local demand, operational capabilities, and the need to maintain service quality. Deputy CFO Jackson Ding said Peiyou Small Class retention was “generally stable” at around 80% across fiscal year 2026, with some quarters above that level. On the online side, Peng said TAL continued to upgrade key products with “richer content and technology-enabled features” to create a more engaging experience, while Ding highlighted interactive formats such as immersive classrooms and role-playing activities as engagement drivers. → The Trade Desk: Down 75%, But a Reversal May Be Near TAL also discussed its learning device business, which Peng said achieved year-over-year revenue growth in the quarter but has shifted over the last couple of quarters “from its rapid expansion phase to a more moderate growth.” The company introduced the X5 Ultra Classic in March 2026, which Peng said incorporates enriched content and upgraded AI capabilities and is intended to address a broader range of at-home self-directed learning needs. Peng shared user engagement metrics for the learning devices install base, citing “around 80% weekly active users” and “an average daily active usage time of about one hour per device.” → Google Cloud Next 2026 Event Bets Big on AI Infrastructure In response to a question on cost pressures, Peng said memory cost increases are an industry-wide challenge. He outlined steps TAL is using to mitigate the impact, including optimizing inventory turnover and stock management, and “refining our product portfolio” by streamlining SKUs and adjusting product mix where appropriate. On competition, Peng said the learning devices sector remains “highly dynamic,” with competitors advancing in hardware, content, and AI-driven features. He said TAL’s approach is continued innovation across product and user experience, and noted the company delivered “19 major operating system upgrades” and “nearly 300 new features” over the last fiscal year. Peng also said management’s view of market share progress “aligns with our expectation and that approach we’ve adopted,” without providing specific share figures. Ding reported fourth-quarter net revenues of $802.4 million (RMB 5.59 billion), up 31.5% year over year in U.S. dollars and 25.8% in RMB. Cost of revenues rose 28.2% to $375.2 million, while gross profit increased 34.5% to $427.2 million. Gross margin was 53.2%, compared with 52.0% a year earlier. Operating expenses were mixed. Selling and marketing expenses increased 1.4% to $220.9 million, while non-GAAP selling and marketing expenses rose 2.0% to $218.5 million. Ding said non-GAAP selling and marketing expenses as a percentage of total net revenues declined to 27.2% from 35.1%. General and administrative expenses increased 15.7% to $133.8 million, and non-GAAP G&A rose 19.7% to $126.8 million. Non-GAAP G&A as a percentage of revenue declined to 15.8% from 17.4%. Income from operations was $72.5 million, compared with an operating loss of $16.0 million in the prior-year quarter. On a non-GAAP basis, income from operations was $82.2 million versus a non-GAAP operating loss of $1.7 million a year earlier. Non-GAAP net income attributable to TAL was $254.5 million. Net revenues: $802.4 million (RMB 5.59 billion), +31.5% YoY in USD Gross margin: 53.2% vs. 52.0% prior year Income from operations: $72.5 million vs. -$16.0 million prior year Non-GAAP income from operations: $82.2 million vs. -$1.7 million prior year Non-GAAP net income attributable to TAL: $254.5 million Other income was $275.0 million in the quarter, compared with $13.0 million in the prior-year period. Ding said the change was “mainly driven by fluctuations in the fair value of certain investments.” Asked for more detail, Ding told UBS analyst Jenny Yuan that TAL makes “financial strategic investments” ranging from wealth management products to minority equity investments and, at times, mergers and acquisitions. He said that in the quarter “a couple of investments in our portfolio experienced an increase in valuation,” resulting in an investment gain booked under other income. Ding emphasized it was “a one-time event” and said the company does not recommend using the quarter’s other income as a baseline for future projections. As of Feb. 28, 2026, Ding said TAL had $1.52 billion in cash and cash equivalents, $1.72 billion in short-term investments, and $262.2 million in current and non-current restricted cash. Deferred revenue was $882.2 million at quarter-end. Net cash used in operating activities during the quarter was $215.0 million. Ding also reviewed the company’s share repurchase program authorized on July 28, 2025, allowing up to $600 million of common shares to be repurchased over 12 months. Fang Liu, Director of Investor Relations, made a correction during the call, stating the $3.3 million of repurchases occurred between Jan. 29, 2026, and April 22, 2026. Ding said the company repurchased 101,371 common shares for an aggregate consideration of approximately $3.3 million over that period. Looking ahead, Peng said TAL’s fiscal 2027 strategy centers on three priorities: Quality growth across businesses: learning services expected to remain the largest revenue contributor, with continued emphasis on quality in both digital and in-person offerings. Application-first AI strategy: Peng said TAL is not pursuing foundation models, focusing instead on AI to enhance user experience and improve operational efficiency across areas such as customer service, content production, and software development. Disciplined execution as it scales: continued focus on execution across content, product, operations, and go-to-market to improve efficiency and profitability over time. For the offline Peiyou learning center network, Peng said TAL entered five new cities in fiscal 2026, bringing total coverage to “over 40 cities across China.” For fiscal 2027, he said the company plans to prioritize “consolidating our presence in existing cities” rather than pursuing aggressive geographic expansion, and he expects revenue growth in the business to “gradually taper” compared with fiscal 2026. On profitability, Ding said it remains a priority and pointed to operating leverage from Peiyou Small Class growth, improvements across other business lines, and company-level operating leverage. He added that non-GAAP operating margin improved year over year in each quarter of fiscal 2026 compared to the prior year. TAL Education Group is a leading provider of after-school tutoring services in China, specializing in K-12 academic instruction. The company offers a range of programs designed to help primary and secondary school students strengthen their core competencies in subjects such as mathematics, English, Chinese language and science. TAL leverages both in-person learning centers and digital platforms to deliver its curriculum, aiming to support student progress through interactive lessons and personalized study plans. Founded in 2003 and headquartered in Beijing, TAL Education Group has grown into one of China's largest private education firms. The article "TAL Education Group Q4 Earnings Call Highlights" was originally published by MarketBeat.

BEIJING, April 23, 2026 /PRNewswire/ -- TAL Education Group (NYSE: TAL) ("TAL" or the "Company"), a smart learning solutions provider in China, today announced its unaudited financial results for the fourth quarter and the fiscal year ended February 28, 2026. Highlights for the Fourth Quarter of Fiscal Year 2026 Net revenues were US$802.4 million, compared to net revenues of US$610.2 million in the same period of the prior year. Income from operations was US$72.5 million, compared to loss from operations of US$16.0 million in the same period of the prior year. Non-GAAP income from operations, which excluded share-based compensation expenses, was US$82.2 million, compared to non-GAAP loss from operations of US$1.7 million in the same period of the prior year. Net income attributable to TAL was US$244.8 million, compared to net loss attributable to TAL of US$7.3 million in the same period of the prior year. Non-GAAP net income attributable to TAL, which excluded share-based compensation expenses, was US$254.5 million, compared to non-GAAP net income attributable to TAL of US$7.0 million in the same period of the prior year. Basic and diluted net income per American Depositary Share ("ADS") were both US$0.44. Non-GAAP basic and diluted net income per ADS, which excluded share-based compensation expenses, were US$0.46 and US$0.45, respectively. Three ADSs represent one Class A common share. Cash, cash equivalents and short-term investments totaled US$3,239.3 million as of February 28, 2026, compared to US$3,618.4 million as of February 28, 2025. Highlights for the Fiscal Year Ended February 28, 2026 Net revenues were US$3,008.9 million, compared to net revenues of US$2,250.2 million in the prior year. Income from operations was US$276.0 million, compared to loss from operations of US$3.2 million in the prior year. Non-GAAP income from operations, which excluded share-based compensation expenses, was US$319.1 million, compared to non-GAAP income from operations of US$61.8 million in the prior year. Net income attributable to TAL was US$530.8 million, compared to net income attributable to TAL of US$84.6 million in the prior year. Non-GAAP net income attributable to TAL, which excluded share-based compensation expenses, was US$573.8 million, compared to non-GAAP net income attributable to TAL of US$149.5 million in the prior year. Basic and diluted net income per ADS were US$0.93 and US$0.92, respectively. Non-GAAP basic and diluted net income per ADS, which excluded share-based compensation expenses, were US$1.00 and US$0.99, respectively. Financial Data——Fourth Quarter and Fiscal Year 2026 (In US$ thousands, except per ADS data and percentages) "We concluded fiscal year 2026 with solid progress across our core businesses. We have expanded our reach to more users and strengthened engagement by enhancing our offerings and operational capabilities. This has also enabled us to better serve the evolving needs of learners, " said Alex Peng, TAL's President & Chief Financial Officer. Mr. Peng added, "As we enter fiscal year 2027, we remain focused on driving quality growth across our business lines. We will also continue to strengthen our operational execution to support long-term efficiency improvements." Financial Results for the Fourth Quarter of Fiscal Year 2026 Net Revenues In the fourth quarter of fiscal year 2026, TAL reported net revenues of US$802.4 million, representing a 31.5% increase from US$610.2 million in the fourth quarter of fiscal year 2025. Operating Costs and Expenses In the fourth quarter of fiscal year 2026, operating costs and expenses were US$729.9 million, representing a 16.6% increase from US$626.3 million in the fourth quarter of fiscal year 2025. Non-GAAP operating costs and expenses, which excluded share-based compensation expenses, were US$720.2 million, representing a 17.7% increase from US$611.9 million in the fourth quarter of fiscal year 2025. Cost of revenues increased by 28.2% to US$375.2 million from US$292.6 million in the fourth quarter of fiscal year 2025. Non-GAAP cost of revenues, which excluded share-based compensation expenses, increased by 28.5% to US$374.8 million, from US$291.7 million in the fourth quarter of fiscal year 2025. Selling and marketing expenses increased by 1.4% to US$220.9 million from US$218.0 million in the fourth quarter of fiscal year 2025. Non-GAAP selling and marketing expenses, which excluded share-based compensation expenses, increased by 2.0% to US$218.5 million, from US$214.3 million in the fourth quarter of fiscal year 2025. General and administrative expenses increased by 15.7% to US$133.8 million from US$115.6 million in the fourth quarter of fiscal year 2025. Non-GAAP general and administrative expenses, which excluded share-based compensation expenses, increased by 19.7% to US$126.8 million, from US$106.0 million in the fourth quarter of fiscal year 2025. Total share-based compensation expenses allocated to the related operating costs and expenses decreased by 31.9% to US$9.8 million in the fourth quarter of fiscal year 2026 from US$14.3 million in the same period of fiscal year 2025. Gross Profit Gross profit increased by 34.5% to US$427.2 million from US$317.6 million in the fourth quarter of fiscal year 2025. The gross margin for the fourth quarter of fiscal year 2026 was 53.2%, compared to 52.0% in the same period of the prior year. (Loss)/Income from Operations Income from operations was US$72.5 million in the fourth quarter of fiscal year 2026, compared to loss from operations of US$16.0 million in the fourth quarter of fiscal year 2025. Non-GAAP income from operations, which excluded share-based compensation expenses, was US$82.2 million, compared to Non-GAAP loss from operations of US$1.7 million in the same period of the prior year. Other Income Other income was US$275.0 million for the fourth quarter of fiscal year 2026, compared to other income of US$13.0 million in the fourth quarter of fiscal year 2025. The change in other income for the fourth quarter was mainly driven by fluctuations in the fair value of certain investments. Impairment Loss on Long-term Investments Impairment loss on long-term investments was US$41.4 million in the fourth quarter of fiscal year 2026, compared to US$4.2 million in the fourth quarter of fiscal year 2025. Income Tax Expense Income tax expense was US$77.0 million in the fourth quarter of fiscal year 2026, compared to income tax expense of US$14.0 million in the fourth quarter of fiscal year 2025. Net (Loss)/Income Attributable to TAL Education Group Net income attributable to TAL was US$244.8 million in the fourth quarter of fiscal year 2026, compared to net loss attributable to TAL of US$7.3 million in the fourth quarter of fiscal year 2025. Non-GAAP net income attributable to TAL, which excluded share-based compensation expenses, was US$254.5 million, compared to Non-GAAP net income attributable to TAL of US$7.0 million in the fourth quarter of fiscal year 2025. Basic and Diluted Net (Loss)/Income per ADS Basic and diluted net income per ADS were both US$0.44, in the fourth quarter of fiscal year 2026. Non-GAAP basic and diluted net income per ADS, which excluded share-based compensation expenses, were US$0.46 and US$0.45, respectively, in the fourth quarter of fiscal year 2026. Cash Flow Net cash used in operating activities for the fourth quarter of fiscal year 2026 was US$215.0 million. Cash, Cash Equivalents, and Short-Term Investments As of February 28, 2026, the Company had US$1,523.9 million of cash and cash equivalents and US$1,715.4 million of short-term investments, compared to US$1,771.3 million of cash and cash equivalents and US$1,847.1 million of short-term investments as of February 28, 2025. Deferred Revenue As of February 28, 2026, the Company's deferred revenue balance was US$882.2 million, compared to US$671.2 million as of February 28, 2025. Financial Results for the Fiscal Year Ended February 28, 2026 Net Revenues In fiscal year 2026, TAL reported net revenues of US$3,008.9 million, representing a 33.7% increase from US$2,250.2 million in fiscal year 2025. Operating Costs and Expenses In fiscal year 2026, operating costs and expenses were US$2,732.9 million, representing a 21.3% increase from US$2,253.4 million in fiscal year 2025. Non-GAAP operating costs and expenses, which excluded share-based compensation expenses, were US$2,689.8 million, representing a 22.9% increase from US$2,188.4 million in fiscal year 2025. Cost of revenues increased by 27.9% to US$1,343.4 million from US$1,050.0 million in fiscal year 2025. Non-GAAP cost of revenues, which excluded share-based compensation expenses, increased by 28.6% to US$1,341.6 million from US$1,043.6 million in fiscal year 2025. Selling and marketing expenses increased by 18.7% to US$889.1 million from US$748.8 million in fiscal year 2025. Non-GAAP selling and marketing expenses, which excluded share-based compensation expenses, increased by 19.9% to US$878.2 million from US$732.6 million in fiscal year 2025. General and administrative expenses increased by 10.1% to US$500.4 million from US$454.7 million in fiscal year 2025. Non-GAAP general and administrative expenses, which excluded share-based compensation expenses, increased by 14.0% to US$470.0 million from US$412.2 million in fiscal year 2025. Total share-based compensation expenses allocated to the related operating costs and expenses decreased by 33.6% to US$43.1 million in fiscal year 2026 from US$64.9 million in fiscal year 2025. Gross Profit Gross profit increased by 38.8% to US$1,665.5 million from US$1,200.3 million in fiscal year 2025. The gross margin in fiscal year 2026 was 55.4%, compared to 53.3% in the prior year. (Loss)/Income from Operations Income from operations was US$276.0 million in fiscal year 2026, compared to loss from operations of US$3.2 million in the prior year. Non-GAAP income from operations, which excluded share-based compensation expenses, was US$319.1 million, compared to US$61.8 million Non-GAAP income from operations in the prior year. Other Income Other income was US$390.2 million in fiscal year 2026, compared to other income of US$64.7 million in the prior year. The change in other income in fiscal year 2026 was mainly driven by fluctuations in the fair value of certain investments. Impairment Loss on Long-term Investments Impairment loss on long-term investments was US$42.8 million in fiscal year 2026, compared to US$12.9 million in fiscal year 2025. Income Tax Expense Income tax expense was US$154.4 million in fiscal year 2026, compared to US$38.3 million of income tax expense in fiscal year 2025. Net (Loss)/Income Attributable to TAL Education Group Net income attributable to TAL was US$530.8 million in fiscal year 2026, compared to net income attributable to TAL of US$84.6 million in fiscal year 2025. Non-GAAP net income attributable to TAL, which excluded share-based compensation expenses, was US$573.8 million, compared to US$149.5 million Non-GAAP net income attributable to TAL in the prior year. Basic and Diluted Net (Loss)/Income per ADS Basic and diluted net income per ADS were US$0.93 and US$0.92, respectively, in fiscal year 2026. Non-GAAP basic and diluted net income per ADS, which excluded share-based compensation expenses, were US$1.00 and US$0.99, respectively, in fiscal year 2026. Cash Flow Net cash provided by operating activities in fiscal year 2026 was US$601.5 million. Share Repurchase On July 28, 2025, TAL's board of directors authorized a new share repurchase program under which the Company may repurchase up to US$600 million of the Company's common shares over the next 12 months. Between January 29, 2026 and April 22, 2026, the Company has repurchased 101,371 common shares at an aggregate consideration of approximately US$3.3 million. Change to the Management Team Effective April 22, 2026, Mr. Mi Tian has stepped down as Chief Technology Officer and transitioned to Senior Vice President. Mr. Tian will focus on selected technology initiatives in his new capacity. Conference Call The Company will host a conference call and live webcast to discuss its financial results for the fourth fiscal quarter of fiscal year 2026 ended February 28, 2026 at 8:00 a.m. Eastern Time on April 23, 2026 (8:00 p.m. Beijing time on April 23, 2026). Please note that you will need to pre-register for conference call participation at https://dpregister.com/sreg/10208034/103bc38d804. Upon registration, you will receive an email containing participant dial-in numbers, passcode, and a unique access PIN. This information will allow you to gain immediate access to the call. Participants may pre-register at any time, including up to and after the call start time. A live and archived webcast of the conference call will be available on the Investor Relations section of TAL's website at https://ir.tal.com/. Safe Harbor Statement This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, TAL Education Group's strategic and operational plans contain forward-looking statements. The Company may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the Company's ability to continue to provide competitive learning services and products; the Company's ability to continue to recruit, train and retain talents; the Company's ability to improve the content of current course offerings and develop new courses; the Company's ability to maintain and enhance its brand; the Company's ability to maintain and continue to improve its teaching results; and the Company's ability to compete effectively against its competitors. Further information regarding these and other risks is included in the Company's reports filed with, or furnished to the U.S. Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of this press release, and TAL Education Group undertakes no duty to update such information or any forward-looking statement, except as required under applicable law. About TAL Education Group TAL Education Group is a smart learning solutions provider in China. The acronym "TAL" stands for "Tomorrow Advancing Life", which reflects our vision to promote top learning opportunities for students through both high-quality teaching and content, as well as leading edge application of technology in the education experience. TAL Education Group offers comprehensive learning solutions to students from all ages through diversified class formats. Our learning solutions mainly cover enrichment learnings programs and some academic subjects in and out of China. Our ADSs trade on the New York Stock Exchange under the symbol "TAL". About Non-GAAP Financial Measures In evaluating its business, TAL considers and uses the following measures defined as non-GAAP financial measures by the SEC as supplemental metrics to review and assess its operating performance: non-GAAP cost of revenues, non-GAAP selling and marketing expenses, non-GAAP general and administrative expenses, non-GAAP operating costs and expenses, non-GAAP income from operations, non-GAAP net income attributable to TAL, non-GAAP basic and non-GAAP diluted net income per ADS. To present each of these non-GAAP measures, the Company excludes share-based compensation expenses. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of non-GAAP measures to the most comparable GAAP measures" set forth at the end of this release. TAL believes that these non-GAAP financial measures provide meaningful supplemental information regarding its performance and liquidity by excluding share-based compensation expenses that may not be indicative of its operating performance from a cash perspective. TAL believes that both management and investors benefit from these non-GAAP financial measures in assessing its performance and when planning and forecasting future periods. These non-GAAP financial measures also facilitate management's internal comparisons to TAL's historical performance and liquidity. TAL computes its non-GAAP financial measures using the same consistent method from quarter to quarter and from period to period. TAL believes these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using non-GAAP measures is that these non-GAAP measures exclude share-based compensation charges that have been and will continue to be for the foreseeable future a significant recurring expense in the Company's business. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. The accompanying tables have more details on the reconciliations between GAAP financial measures that are most directly comparable to non-GAAP financial measures. For further information, please contact: Jackson Ding Investor Relations TAL Education Group Tel: +86 10 5292 6669-8809 Email: [email protected] View original content:https://www.prnewswire.com/news-releases/tal-education-group-announces-unaudited-financial-results-for-the-fourth-fiscal-quarter-and-the-fiscal-year-2026-302751537.html