US Stock Market Move | New Oriental Education & Technology Group, Inc. Sponsored ADR (EDU.US) fell more than 6%, and Daiwa expects the company's revenue growth to slow to 14% in fiscal year 2026.

On Friday, New Oriental Education & Technology Group, Inc. Sponsored ADR (EDU.US) fell by more than 6% to $44.88. On the news front, Daiwa published a report forecasting a 21% year-on-year increase in core revenue for New Oriental Education & Technology Group, Inc. Sponsored ADR in the third quarter of the 2025 fiscal year, lower than the previous expectation of 25%, with total revenue expected to decline by 2% year-on-year. Although the demand for K12 small class courses remains stable, it is expected that high-end overseas exam preparation and consulting service revenue in the current fiscal year will be lower than management expectations in the second half of the year, causing overseas related revenue growth to further slow to 11% to 12% year-on-year. Due to consumers' cautious spending on high-end travel services, cultural tourism revenue during the winter vacation period also did not meet company expectations. The bank predicts that New Oriental Education & Technology Group, Inc. Sponsored ADR's quarterly core business non-GAAP operating margin will decrease to 12.5%, down 2.5 percentage points year-on-year. Fourth-quarter revenue is expected to remain flat year-on-year, with core business revenue rising by 11%, resulting in a full-year revenue growth of 24% in the current fiscal year. It is expected that revenue growth will slow to 14% in the next fiscal year, as the outlook for overseas business is challenging and the company's efforts to strengthen efficiency management may slow down capacity expansion.