TAL Education Group Announces Unaudited Financial Results for the Fourth Fiscal Quarter and the Fiscal Year 2026
Rhea-AI Summary
TAL Education Group (NYSE: TAL) reported unaudited results for Q4 and fiscal year ended Feb 28, 2026. FY2026 revenue was US$3,008.9M (+33.7% YoY) and FY net income attributable to TAL was US$530.8M. Q4 net revenues were US$802.4M (+31.5% YoY) with Q4 net income attributable to TAL of US$244.8M. Cash, cash equivalents and short-term investments totaled US$3,239.3M as of Feb 28, 2026. The board authorized a up-to-US$600M share repurchase program.
AI-generated analysis. Not financial advice.
Positive
- Fiscal 2026 revenue: US$3,008.9M (+33.7% YoY)
- Fiscal 2026 net income attributable to TAL: US$530.8M
- Q4 net revenues: US$802.4M (+31.5% YoY)
- Cash, cash equivalents and short-term investments: US$3,239.3M
- Share repurchase authorization: up to US$600M
Negative
- Cash and cash equivalents declined to US$1,523.9M from US$1,771.3M year-over-year
- Impairment loss on long-term investments: US$42.8M in FY2026
- Deferred revenue growth may reflect advance obligations: US$882.2M as of Feb 28, 2026
News Market Reaction – TAL
On the day this news was published, TAL declined 9.31%, reflecting a notable negative market reaction. Argus tracked a trough of -8.4% from its starting point during tracking. Our momentum scanner triggered 21 alerts that day, indicating elevated trading interest and price volatility. This price movement removed approximately $751M from the company's valuation, bringing the market cap to $7.32B at that time. Trading volume was elevated at 2.5x the daily average, suggesting increased selling activity.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
Education peers showed mixed action: LRN and ATGE were up, LOPE and EDU were down, with EDU appearing in momentum scanners at about -4.88%. TAL’s modest pre-news gain of 0.59% suggests stock-specific positioning rather than a broad sector rotation.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jan 29 | Quarterly earnings | Positive | +18.0% | Strong Q3 FY2026 revenues, higher margins, and solid net income growth. |
| Oct 30 | Quarterly earnings | Positive | +7.3% | Q2 FY2026 revenue growth above 39% YoY and sharply higher net income. |
| Jul 31 | Quarterly earnings | Positive | +8.4% | Q1 FY2026 revenue up 38.8% with return to operating profitability and margin gains. |
| Apr 24 | Quarterly and annual earnings | Positive | -18.7% | Q4 and FY2025 revenue growth with lingering operating losses and higher costs. |
| Jan 23 | Quarterly earnings | Positive | +21.3% | Q3 FY2025 revenue up 62.4% and swing from net loss to net income. |
Earnings releases have generally been received positively, with four of the last five tagged earnings reports seeing strong price gains and only one notable selloff despite revenue growth.
Over the past year, TAL has reported a series of strengthening earnings. Q3 FY2026 on Jan 29, 2026 delivered net revenues of US$770.2M and net income of US$130.6M, driving an 18.03% move. Earlier quarters in FY2026 also showed robust revenue growth, margin expansion, and rising net income, with price reactions of 7.32%, 8.42%, and 21.25%. The current Q4 and FY2026 announcement continues this trajectory, adding full-year context to prior quarterly momentum.
Historical Comparison
In the past five earnings releases, TAL’s stock moved an average of 7.27% over the following day, usually responding strongly to revenue growth and profitability shifts discussed in similar financial updates.
Recent earnings span Q1–Q3 FY2026 and prior Q4 FY2025, showing sustained revenue expansion, margin improvement, and a transition from operating losses to consistent profitability.
Market Pulse Summary
The stock moved -9.3% in the session following this news. A negative reaction despite strong headline growth would fit prior instances where the stock sold off even as revenues expanded, such as FY2025 results. The FY2026 report shows higher profitability and margins, but the market could focus on cash trends, investment-related income volatility, or expectations set by earlier quarters. Historically, earnings-related moves averaged 7.27%, so a large decline would stand out against prior patterns.
Key Terms
ads financial
non-gaap financial
deferred revenue financial
impairment loss on long-term investments financial
AI-generated analysis. Not financial advice.
Highlights for the Fourth Quarter of Fiscal Year 2026
- Net revenues were
US , compared to net revenues of$802.4 million US in the same period of the prior year.$610.2 million - Income from operations was
US , compared to loss from operations of$72.5 million US in the same period of the prior year.$16.0 million - Non-GAAP income from operations, which excluded share-based compensation expenses, was
US , compared to non-GAAP loss from operations of$82.2 million US in the same period of the prior year.$1.7 million - Net income attributable to TAL was
US , compared to net loss attributable to TAL of$244.8 million US in the same period of the prior year.$7.3 million - Non-GAAP net income attributable to TAL, which excluded share-based compensation expenses, was
US , compared to non-GAAP net income attributable to TAL of$254.5 million US in the same period of the prior year.$7.0 million - Basic and diluted net income per American Depositary Share ("ADS") were both
US . Non-GAAP basic and diluted net income per ADS, which excluded share-based compensation expenses, were$0.44 US and$0.46 US , respectively. Three ADSs represent one Class A common share.$0.45 - Cash, cash equivalents and short-term investments totaled
US as of February 28, 2026, compared to$3,239.3 million US as of February 28, 2025.$3,618.4 million
Highlights for the Fiscal Year Ended February 28, 2026
- Net revenues were
US , compared to net revenues of$3,008.9 million US in the prior year.$2,250.2 million - Income from operations was
US , compared to loss from operations of$276.0 million US in the prior year.$3.2 million - Non-GAAP income from operations, which excluded share-based compensation expenses, was
US , compared to non-GAAP income from operations of$319.1 million US in the prior year.$61.8 million - Net income attributable to TAL was
US , compared to net income attributable to TAL of$530.8 million US in the prior year.$84.6 million - Non-GAAP net income attributable to TAL, which excluded share-based compensation expenses, was
US , compared to non-GAAP net income attributable to TAL of$573.8 million US in the prior year.$149.5 million - Basic and diluted net income per ADS were
US and$0.93 US , respectively. Non-GAAP basic and diluted net income per ADS, which excluded share-based compensation expenses, were$0.92 US and$1.00 US , respectively.$0.99
Financial Data——Fourth Quarter and Fiscal Year 2026
(In US$ thousands, except per ADS data and percentages)
Three Months Ended | |||
February 28, | |||
2025 | 2026 | Pct. Change | |
Net revenues | 610,239 | 802,389 | 31.5 % |
(Loss)/income from operations | (16,015) | 72,473 | (552.5 %) |
Non-GAAP (loss)/income from operations | (1,692) | 82,224 | (4,959.6 %) |
Net (loss)/income attributable to TAL | (7,311) | 244,790 | (3,448.2 %) |
Non-GAAP net income attributable to TAL | 7,012 | 254,541 | 3,530.1 % |
Net (loss)/income per ADS attributable to TAL – basic | (0.01) | 0.44 | (3,774.6 %) |
Net (loss)/income per ADS attributable to TAL – diluted | (0.01) | 0.44 | (3,735.4 %) |
Non-GAAP net income per ADS attributable to TAL – basic | 0.01 | 0.46 | 3,883.9 % |
Non-GAAP net income per ADS attributable to TAL – diluted | 0.01 | 0.45 | 3,899.7 % |
Fiscal Year Ended | |||
February 28, | |||
2025 | 2026 | Pct. Change | |
Net revenues | 2,250,233 | 3,008,908 | 33.7 % |
(Loss)/income from operations | (3,155) | 276,039 | (8,849.3 %) |
Non-GAAP income from operations | 61,784 | 319,132 | 416.5 % |
Net income attributable to TAL | 84,591 | 530,751 | 527.4 % |
Non-GAAP net income attributable to TAL | 149,530 | 573,844 | 283.8 % |
Net income per ADS attributable to TAL – basic | 0.14 | 0.93 | 565.5 % |
Net income per ADS attributable to TAL – diluted | 0.14 | 0.92 | 567.4 % |
Non-GAAP net income per ADS attributable to TAL – basic | 0.25 | 1.00 | 307.0 % |
Non-GAAP net income per ADS attributable to TAL – diluted | 0.24 | 0.99 | 308.2 % |
"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
Operating Costs and Expenses
In the fourth quarter of fiscal year 2026, operating costs and expenses were
Cost of revenues increased by
Selling and marketing expenses increased by
General and administrative expenses increased by
Total share-based compensation expenses allocated to the related operating costs and expenses decreased by
Gross Profit
Gross profit increased by
(Loss)/Income from Operations
Income from operations was
Other Income
Other income was
Impairment Loss on Long-term Investments
Impairment loss on long-term investments was
Income Tax Expense
Income tax expense was
Net (Loss)/Income Attributable to TAL Education Group
Net income attributable to TAL was
Basic and Diluted Net (Loss)/Income per ADS
Basic and diluted net income per ADS were both
Cash Flow
Net cash used in operating activities for the fourth quarter of fiscal year 2026 was
Cash, Cash Equivalents, and Short-Term Investments
As of February 28, 2026, the Company had
Deferred Revenue
As of February 28, 2026, the Company's deferred revenue balance was
Financial Results for the Fiscal Year Ended February 28, 2026
Net Revenues
In fiscal year 2026, TAL reported net revenues of US
Operating Costs and Expenses
In fiscal year 2026, operating costs and expenses were US
Cost of revenues increased by
Selling and marketing expenses increased by
General and administrative expenses increased by
Total share-based compensation expenses allocated to the related operating costs and expenses decreased by
Gross Profit
Gross profit increased by
(Loss)/Income from Operations
Income from operations was US
Other Income
Other income was US
Impairment Loss on Long-term Investments
Impairment loss on long-term investments was US
Income Tax Expense
Income tax expense was US
Net (Loss)/Income Attributable to TAL Education Group
Net income attributable to TAL was US
Basic and Diluted Net (Loss)/Income per ADS
Basic and diluted net income per ADS were
Cash Flow
Net cash provided by operating activities in fiscal year 2026 was
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
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.
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
About TAL Education Group
TAL Education Group is a smart learning solutions provider in
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: ir@tal.com
TAL EDUCATION GROUP UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands of | ||||
As of February 28, | As of February 28, | |||
ASSETS | ||||
Current assets | ||||
Cash and cash equivalents | ||||
Restricted cash, current | 187,846 | 227,551 | ||
Short-term investments | 1,847,120 | 1,715,446 | ||
Inventory, net | 104,876 | 143,326 | ||
Amounts due from related parties, current | 37 | 46 | ||
Prepaid expenses and other current assets | 215,781 | 232,870 | ||
Total current assets | 4,126,920 | 3,843,118 | ||
Restricted cash, non-current | 32,625 | 34,608 | ||
Property and equipment, net | 472,366 | 500,710 | ||
Deferred tax assets | 3,487 | 3,170 | ||
Rental deposits | 22,131 | 28,058 | ||
Intangible assets, net | 394 | 45,975 | ||
Goodwill | 155 | 45,545 | ||
Land use rights, net | 182,880 | 189,779 | ||
Amounts due from related parties, non-current | 96 | 134 | ||
Long-term investments | 305,105 | 828,249 | ||
Long-term prepayments and other non-current assets | 27,844 | 37,216 | ||
Operating lease right-of-use assets | 329,064 | 379,727 | ||
Total assets | ||||
LIABILITIES AND EQUITY | ||||
Current liabilities | ||||
Accounts payable | ||||
Deferred revenue, current | 624,272 | 832,839 | ||
Amounts due to related parties, current | 93 | 97 | ||
Accrued expenses and other current liabilities | 582,227 | 672,344 | ||
Operating lease liabilities, current | 88,453 | 109,393 | ||
Total current liabilities | 1,441,345 | 1,767,186 | ||
Deferred revenue, non-current | 46,955 | 49,353 | ||
Deferred tax liabilities | 3,474 | 67,981 | ||
Operating lease liabilities, non-current | 244,895 | 278,083 | ||
Total liabilities | 1,736,669 | 2,162,603 | ||
Equity | ||||
Class A common shares | 154 | 156 | ||
Class B common shares | 49 | 49 | ||
Treasury stock | - | (20) | ||
Additional paid-in capital | 4,294,819 | 3,694,418 | ||
Statutory reserve | 179,537 | 216,638 | ||
Accumulated deficit | (624,078) | (130,428) | ||
Accumulated other comprehensive loss | (83,914) | (6,376) | ||
Total TAL Education Group's equity | 3,766,567 | 3,774,437 | ||
Non-controlling interests | (169) | (751) | ||
Total equity | 3,766,398 | 3,773,686 | ||
Total liabilities and equity | ||||
TAL EDUCATION GROUP UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands of | |||||||
For the Three Months Ended February 28, | For the Fiscal Year Ended February 28, | ||||||
2025 | 2026 | 2025 | 2026 | ||||
Net revenues | |||||||
Cost of revenues (note 1) | 292,646 | 375,158 | 1,049,975 | 1,343,430 | |||
Gross profit | 317,593 | 427,231 | 1,200,258 | 1,665,478 | |||
Operating expenses (note 1) | |||||||
Selling and marketing | 217,981 | 220,931 | 748,750 | 889,053 | |||
General and administrative (note 2) | 115,627 | 133,827 | 454,663 | 500,386 | |||
Total operating expenses | 333,608 | 354,758 | 1,203,413 | 1,389,439 | |||
(Loss)/income from operations | (16,015) | 72,473 | (3,155) | 276,039 | |||
Interest income, net | 19,072 | 14,817 | 83,482 | 62,030 | |||
Other income | 12,950 | 275,016 | 64,717 | 390,155 | |||
Impairment loss on long-term investments | (4,241) | (41,404) | (12,933) | (42,814) | |||
Income before income tax expense and (loss)/income from equity method investments | 11,766 | 320,902 | 132,111 | 685,410 | |||
Income tax expense | (13,972) | (76,952) | (38,320) | (154,417) | |||
(Loss)/income from equity method investments | (5,194) | 440 | (9,531) | (855) | |||
Net (loss)/income | |||||||
Add: Net loss attributable to non-controlling interests | 89 | 400 | 331 | 613 | |||
Total net (loss)/income attributable to TAL Education Group | |||||||
Net (loss)/income per common share | |||||||
Basic | |||||||
Diluted | (0.04) | 1.31 | 0.41 | 2.75 | |||
Net (loss)/income per ADS (note 3) | |||||||
Basic | |||||||
Diluted | (0.01) | 0.44 | 0.14 | 0.92 | |||
Weighted average shares used in calculating net (loss)/income per common share | |||||||
Basic | 202,627,554 | 184,629,323 | 201,963,823 | 190,420,468 | |||
Diluted | 202,627,554 | 186,620,660 | 205,222,753 | 192,925,293 | |||
Note1: Share-based compensation expenses are included in the operating costs and expenses as follows: | |||||||
For the Three Months | For the Fiscal Year | ||||||
Ended February 28, | Ended February 28, | ||||||
2025 | 2026 | 2025 | 2026 | ||||
Cost of revenues | |||||||
Selling and marketing expenses | 3,691 | 2,386 | 16,101 | 10,839 | |||
General and administrative expenses | 9,669 | 7,003 | 42,449 | 30,380 | |||
Total | |||||||
Note 2: GAAP and non-GAAP general and administrative expenses include government subsidies, which were separately presented in our historical financial statements. This reclassification has been made to conform to the presentation for the current period, and such reclassification had no impact on the Group's previously reported (loss)/income from operations, net (loss)/income, shareholders' equity, or cash flows. | |||||||
Note 3: Three ADSs represent one Class A common share. | |||||||
TAL EDUCATION GROUP UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS)/INCOME (In thousands of | |||||||
For the Three Months Ended February 28, | For the Fiscal Year Ended February 28, | ||||||
2025 | 2026 | 2025 | 2026 | ||||
Net (loss)/income | |||||||
Other comprehensive (loss)/income, net of tax | (13,376) | 39,844 | (17,724) | 77,569 | |||
Comprehensive (loss)/income | (20,776) | 284,234 | 66,536 | 607,707 | |||
Add: Comprehensive loss attributable to non-controlling interests | 44 | 387 | 69 | 582 | |||
Comprehensive (loss)/income attributable to TAL Education Group | |||||||
TAL EDUCATION GROUP UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands of | |||||||
For the Three Months Ended February 28, | For the Fiscal Year Ended February 28, | ||||||
2025 | 2026 | 2025 | 2026 | ||||
Net cash (used in)/provided by operating activities | |||||||
Net cash used in investing activities | (314,289) | (475,945) | (847,028) | (175,746) | |||
Net cash used in financing activities | (55,104) | (18,937) | (13,167) | (643,512) | |||
Effect of exchange rate changes | (998) | 10,284 | (3,473) | 12,098 | |||
Net decrease in cash, cash equivalents and restricted cash | (596,723) | (699,563) | (465,745) | (205,693) | |||
Cash, cash equivalents and restricted cash at the beginning of period | 2,588,454 | 2,485,601 | 2,457,476 | 1,991,731 | |||
Cash, cash equivalents and restricted cash at the end of period | |||||||
TAL EDUCATION GROUP Reconciliation of Non-GAAP Measures to the Most Comparable GAAP Measures (In thousands of | |||||||
For the Three Months Ended February 28, | For the Fiscal Year Ended February 28, | ||||||
2025 | 2026 | 2025 | 2026 | ||||
Cost of revenues | |||||||
Share-based compensation expenses in cost of revenues | 963 | 362 | 6,389 | 1,874 | |||
Non-GAAP cost of revenues | 291,683 | 374,796 | 1,043,586 | 1,341,556 | |||
Selling and marketing expenses | 217,981 | 220,931 | 748,750 | 889,053 | |||
Share-based compensation expenses in selling and marketing expenses | 3,691 | 2,386 | 16,101 | 10,839 | |||
Non-GAAP selling and marketing expenses | 214,290 | 218,545 | 732,649 | 878,214 | |||
General and administrative expenses(note 2) | 115,627 | 133,827 | 454,663 | 500,386 | |||
Share-based compensation expenses in general and administrative expenses | 9,669 | 7,003 | 42,449 | 30,380 | |||
Non-GAAP general and administrative expenses(note 2) | 105,958 | 126,824 | 412,214 | 470,006 | |||
Operating costs and expenses | 626,254 | 729,916 | 2,253,388 | 2,732,869 | |||
Share-based compensation expenses in operating costs and expenses | 14,323 | 9,751 | 64,939 | 43,093 | |||
Non-GAAP operating costs and expenses | 611,931 | 720,165 | 2,188,449 | 2,689,776 | |||
(Loss)/income from operations | (16,015) | 72,473 | (3,155) | 276,039 | |||
Share-based compensation expenses | 14,323 | 9,751 | 64,939 | 43,093 | |||
Non-GAAP (loss)/income from operations | (1,692) | 82,224 | 61,784 | 319,132 | |||
Net (loss)/income attributable to TAL Education Group | (7,311) | 244,790 | 84,591 | 530,751 | |||
Share-based compensation expenses | 14,323 | 9,751 | 64,939 | 43,093 | |||
Non-GAAP net income attributable to TAL Education Group (note 4) | |||||||
Net (loss)/income per ADS | |||||||
Basic | |||||||
Diluted | (0.01) | 0.44 | 0.14 | 0.92 | |||
Non-GAAP net income per ADS | |||||||
Basic | |||||||
Diluted | 0.01 | 0.45 | 0.24 | 0.99 | |||
ADSs used in calculating net (loss)/income per ADS | |||||||
Basic | 607,882,662 | 553,887,969 | 605,891,469 | 571,261,404 | |||
Diluted | 607,882,662 | 559,861,980 | 615,668,259 | 578,775,879 | |||
ADSs used in calculating Non-GAAP net income per ADS | |||||||
Basic | 607,882,662 | 553,887,969 | 605,891,469 | 571,261,404 | |||
Diluted | 616,868,733 | 559,861,980 | 615,668,259 | 578,775,879 | |||
Note 4: The tax effect of share-based compensation expenses was immaterial in the fourth quarter and in fiscal year 2026. | |||||||
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SOURCE TAL Education Group