TAL Education Group (NYSE:TAL) Posts Earnings Results, Beats Expectations By $0.30 EPS

TAL Education Group (NYSE:TAL) issued its earnings results on Thursday. The company reported $0.44 earnings per share for the quarter, topping the consensus estimate of $0.14 by $0.30, Zacks reports. TAL Education Group had a return on equity of 7.81% and a net margin of 9.89%.

Here are the key takeaways from TAL Education Group’s conference call:

• Q4 net revenues were $802.4 million (up 31.5% YoY in USD) and non‑GAAP net income attributable to TAL was $254.5 million, marking a clear swing to profitability and quarter‑over‑quarter margin improvement.
• Offline Peiyou small‑class remains the largest revenue driver with ~80% retention and measured expansion into five new cities (now covering >40 cities), but management expects revenue growth to gradually moderate in FY2027 as expansion prioritizes density and quality.
• The learning devices business grew year‑over‑year and launched the X5 Ultra (≈80% weekly active users, ~1 hour daily use), though device growth is shifting from rapid expansion to moderate pace and management is mitigating memory cost pressure via SKU, inventory and mix optimization.
• Q4 other income jumped to $275.0 million due to fair‑value gains on investments, which management called a one‑time event and warned should not be treated as a baseline for future profitability.
• Balance sheet liquidity is strong with about $1.524 billion cash and $1.715 billion short‑term investments (deferred revenue ~$882.2 million), but operating cash used was ~$215.0 million in the quarter and share repurchases to date have been minimal (~$3.3 million).

TAL Education Group Trading Down 9.7%

NYSE TAL traded down $1.17 during trading on Thursday, reaching $10.87. 5,871,896 shares of the company’s stock were exchanged, compared to its average volume of 3,845,121. TAL Education Group has a fifty-two week low of $8.50 and a fifty-two week high of $13.37. The company’s fifty day simple moving average is $11.19 and its 200-day simple moving average is $11.33. The firm has a market capitalization of $6.62 billion, a PE ratio of 22.53 and a beta of 0.15.

Analyst Ratings Changes

A number of equities analysts have recently commented on the company. Zacks Research downgraded TAL Education Group from a “strong-buy” rating to a “hold” rating in a report on Tuesday, March 31st. Weiss Ratings reaffirmed a “hold (c)” rating on shares of TAL Education Group in a report on Monday, December 29th. Finally, Wall Street Zen upgraded TAL Education Group from a “hold” rating to a “buy” rating in a research report on Sunday, March 8th. One equities research analyst has rated the stock with a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $12.81.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Quarry LP purchased a new stake in shares of TAL Education Group during the third quarter worth $42,000. DV Equities LLC bought a new stake in shares of TAL Education Group in the 4th quarter valued at approximately $49,000. Daiwa Securities Group Inc. increased its holdings in TAL Education Group by 194.9% in the fourth quarter. Daiwa Securities Group Inc. now owns 5,750 shares of the company’s stock worth $63,000 after buying an additional 3,800 shares during the last quarter. CIBC Asset Management Inc bought a new position in TAL Education Group during the fourth quarter valued at approximately $120,000. Finally, Brooklyn Investment Group lifted its stake in TAL Education Group by 386.0% in the third quarter. Brooklyn Investment Group now owns 11,080 shares of the company’s stock valued at $124,000 after acquiring an additional 8,800 shares during the last quarter. Institutional investors and hedge funds own 37.79% of the company’s stock.

About TAL Education Group

TAL Education Group is a leading provider of after-school tutoring services in China, specializing in K-12 academic instruction. The company offers a range of programs designed to help primary and secondary school students strengthen their core competencies in subjects such as mathematics, English, Chinese language and science. TAL leverages both in-person learning centers and digital platforms to deliver its curriculum, aiming to support student progress through interactive lessons and personalized study plans.

Founded in 2003 and headquartered in Beijing, TAL Education Group has grown into one of China’s largest private education firms.