New Oriental Education & Techno (EDU) Stock Price & How to Invest

New Oriental Education & Technology Group is a Beijing-based education company that trades in the US as an ADR under the ticker EDU (a Hong Kong listing, 9901, also exists). Founded in 1993 as an English and test-prep school, it became China's best-known tutoring brand before Beijing's 2021 "double reduction" policy banned for-profit academic tutoring of core K-9 subjects and wiped out most of the company's original business. Since then it has rebuilt around segments that remain permitted: overseas test preparation and study-abroad consulting, non-academic tutoring (arts, coding, STEAM, study tours), intelligent learning devices, and a fast-growing live-streaming e-commerce operation run through its East Buy (Oriental Select) platform.

The reinvention has been strikingly effective. Revenue has returned to growth, with fiscal 2025 (year ended May 2025) net revenues of roughly $4.9 billion and fiscal 2026 guided toward roughly $5.6 billion, while recent quarters showed near 20 percent year-over-year revenue growth and expanding margins. The investment picture is a blend of a genuine operating recovery and outsized macro and governance risk: EDU is a China ADR whose economics flow through a variable-interest-entity (VIE) structure, its core end markets sit under an unpredictable regulator, and its e-commerce arm adds a lower-margin, more volatile revenue stream layered on top of the education base.

The dominant risk is Chinese regulation: the same government that erased the K-9 tutoring business could tighten rules on non-academic tutoring, devices, or e-commerce with little warning. As a US-listed ADR built on a VIE structure, holders own contractual claims on offshore entities rather than direct equity in the operating businesses, and US-China tensions keep delisting risk alive. The East Buy e-commerce segment is competitive, personality-driven, and lower margin, so its revenue can be lumpy. Currency (renminbi) translation, macro softness in China, and intense competition from TAL Education and others add further volatility.

A simple financial snapshot. These are approximations and refresh quarterly; for current figures see New Oriental Education & Techno's investor relations page or your broker.

• Revenue (FY2025): ~$4.9B
• Revenue (FY2026 guidance): ~$5.6B
• Recent quarterly revenue growth: ~20% YoY
• Net income (FY2025): ~$372M
• Market cap: ~$7B
• Gross margin: ~55%

New Oriental returned to solid growth after the crackdown, with fiscal 2025 revenue near $4.9 billion and fiscal 2026 guided toward roughly $5.6 billion. The stock has traded well below pre-2021 levels and below some analysts' fair-value estimates, reflecting a persistent China-ADR discount rather than weak operations. A large net cash balance means enterprise value is well below market cap.

There are three common ways to get EDU exposure. Buy shares (or fractional shares) directly at any major broker. Hold an ETF that includes it, which spreads the position across many companies. Or build it into a focused thematic basket, so EDU sits alongside other stocks that express the same thesis.

Walnut takes the basket route. Describe a thesis where EDU fits (for example “AI infrastructure” or “dividend-growth large-caps”) and the AI proposes 5 to 6 constituents with target weights. You review the plan and fund it through your own broker when you're ready.

New Oriental is a growing, cash-rich survivor of China's education crackdown, but its story rides on Chinese regulation and ADR structure risk as much as on execution.

Whether EDU is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, what would have to go right, and the risks in is EDU a buy?, and where the stock could go from here in the EDU stock forecast.

For income investors, whether EDU pays a dividend and how the payout looks is covered in does EDU pay a dividend?