New York, Jan 29, 2026, 12:57 EST — Regular session.
- TAL shares jumped roughly 12.5% in midday trading following its quarterly earnings report.
- Revenue jumped 27%, pushing operating results back into the black.
- Executives cautioned that learning devices remain unprofitable and growth could slow down.
TAL Education Group (NYSE:TAL) shares jumped roughly 12.5% to $12.10 on Thursday, after hitting a session high near 15%. The boost came after the company reported stronger profits and expanded margins for the quarter.
These figures are crucial as China’s education companies scramble to show growth under the new post-crackdown regulations. Investors have quickly punished or rewarded the sector at the slightest sign of demand shifts or policy pressure, with earnings reports often driving the moves.
For TAL, the question isn’t just about one quarter’s results but the overall mix. Can the company continue growing revenue without letting customer acquisition costs or investments in devices and tech-driven products spiral out of control?
Net revenues climbed 27% to $770.2 million in the quarter ending Nov. 30, while income from operations jumped to $93.1 million, reversing a $17.4 million operating loss from the same period last year, the company reported. Net income attributable to shareholders hit $130.6 million. Gross margin expanded to 56.1%, helped by a 2.8% drop in selling and marketing expenses to $220.1 million. President and CFO Alex Peng highlighted that net revenues “continued their steady growth trajectory.” The company also revealed it had bought back roughly $27.7 million in shares under its $600 million repurchase plan. PR Newswire
TAL closed the quarter with $3.62 billion in cash, cash equivalents, and short-term investments, the company reported. Deferred revenue—cash received for classes not yet delivered—jumped to $1.16 billion as of Nov. 30, up from $671.2 million at the end of February.
Adjusted earnings hit 25 cents per American depositary share (ADS), beating the 7-cent consensus estimate. Revenue, however, fell just short of the $775.68 million forecast, based on Investing.com’s earnings calendar. (Non-GAAP, or adjusted, figures exclude items like share-based compensation.)
Peers held steady. New Oriental Education dipped roughly 0.3%, while Gaotu Techedu edged up around 0.7% by midday.
Management took a cautious stance on the outlook. Deputy CFO Jackson Ding noted the learning device segment is still losing money, with the breakeven timeline “uncertain.” Peng added that the company might face “occasional variability and limited visibility” as demand shifts and resources get shuffled. Executives also flagged that year-on-year growth is expected to “moderate” in the second half of the fiscal year. The Motley Fool
Traders are eyeing if the margin boost sticks should marketing ramp up once more, and if buybacks gain momentum from this point. China policy remains a key wildcard; any new crackdown on education services could shift sentiment fast.
The fiscal fourth quarter, ending Feb. 28, is the next key checkpoint. Investors will be watching closely for updates on enrolments, device sales, and whether this quarter’s profit momentum holds steady.
