TAL Education Group

Latest Results (05.04.2026):

TAL Education Group — third quarter of fiscal year 2026 (three months ended November 30, 2025): TAL reported strong top-line and profit recovery in Q3 FY2026 with net revenues of US$770.2 million (up 27.0% year-over-year), GAAP net income attributable to TAL of US$130.6 million (vs. US$23.1 million a year earlier) and GAAP income from operations of US$93.1 million (compared with a loss from operations in the prior-year quarter). Non‑GAAP results (excluding share‑based compensation) also improved materially. The company finished the quarter with healthy operating cash generation and ample liquidity.

Revenue growth

Net revenues for Q3 FY2026 were US$770.2 million, a 27.0% increase versus Q3 FY2025. For the first nine months of FY2026, revenues were US$2,206.5 million, up 34.5% year‑over‑year.

Profitability turnaround

GAAP income from operations was US$93.1 million in Q3 FY2026 (vs. a US$17.4 million loss in Q3 FY2025). GAAP net income attributable to TAL was US$130.6 million in Q3 (vs. US$23.1 million). Non‑GAAP income from operations was US$104.0 million and non‑GAAP net income attributable to TAL was US$141.4 million for the quarter (both exclude share‑based compensation).

Margins and gross profit

Gross profit rose to US$431.8 million in Q3 FY2026 (up 35.0% YoY) and gross margin improved to 56.1% from 52.7% a year earlier, indicating better revenue mix and scale benefits.

Operating costs and share‑based compensation

Operating costs and expenses were US$677.0 million in Q3 (an 8.5% increase YoY). Total share‑based compensation allocated to operating expenses declined ~30.2% QoQ to US$10.8 million in the quarter; non‑GAAP operating costs (ex‑share‑based comp) were US$666.2 million.

Cash, liquidity and cash flow

Cash, cash equivalents and short‑term investments totaled US$3,617.4 million as of November 30, 2025 (roughly flat versus Feb 28, 2025). Net cash provided by operating activities in Q3 was strong at US$526.7 million (US$816.4 million for the first nine months).

Deferred revenue and balance sheet trends

Deferred revenue rose materially to US$1,162.8 million as of November 30, 2025 (from US$671.2 million at Feb 28, 2025), supporting future revenue visibility. Total assets increased to US$5,919.6 million and accumulated deficit narrowed to US$(334.5) million.

Per‑ADS earnings and non‑GAAP metrics

Basic and diluted net income per ADS in Q3 were US$0.24 and US$0.23, respectively. Non‑GAAP basic and diluted net income per ADS were both US$0.25 (three ADSs represent one Class A common share).

Capital return and share buyback

Board authorized a new share repurchase program of up to US$600 million (announced July 28, 2025). Through Jan 28, 2026 the company repurchased 844,856 common shares for approximately US$27.7 million.