Why Is NEW ORIENTAL ED & TE ADR (EDU) Stock Down Today?

New Oriental Education & Technology Group Inc (EDU) shares fell 12.54% to $50.72 on October 28, 2026. The decline followed the company’s release of first-quarter fiscal 2027 results, where revenue beat expectations but the market focused on dividend sustainability and a reaffirmed revenue outlook.

What Happened

New Oriental reported first-quarter revenue of $1.87 billion, surpassing analyst estimates. The company attributed the growth to expansion in e-commerce and tutoring services. Management reaffirmed its total net revenue guidance for fiscal year 2027, projecting revenue between $6.45 billion and $6.68 billion. This range compares to a consensus estimate of $6.6 billion. While the top-line performance met expectations, the earnings call highlighted a confident growth path, yet the stock traded lower in the session.

What The Data Shows

The stock printed 13 fresh 52-week lows and one fresh 52-week high on October 28, 2026. The current price of $50.72 sits within the 52-week range of $44.25 to $64.97. Fundamentals show a market capitalization of $9.0 billion, a P/E ratio of 19.5, and a TTM revenue growth rate of 15.5%. The company maintains a net margin of 8.4% and a dividend yield of 2.06%. A valuation model from GuruFocus places the GF Value at $77.39, well above the current trading price. Recent insider activity includes two sales totaling $4.1 million over the last 90 days, with no buys recorded. Director Zhou Chenggang sold shares on August 7, 2026, and Director Zhuge Yue sold on July 31, 2026.

What To Watch

Investors will monitor the company’s ability to sustain its dividend and execute on its fiscal 2027 revenue guidance. The reaffirmed outlook of $6.45 billion to $6.68 billion remains the primary metric for assessing future performance against the current market valuation.