TAL Education Group reported its fiscal 2026 second‑quarter results, posting net revenues of $861.4 million, a 39.1 % year‑over‑year increase, and operating income of $96.1 million, up 101.8 % from the same period last year. Net income attributable to TAL rose to $124.1 million, a 116.1 % jump, while non‑GAAP net income reached $135.8 million. Gross margin expanded to 57.0 % from 56.3 % in Q2 FY2025, and non‑GAAP income from operations climbed to $107.8 million, up 67.2 % YoY.
Revenue grew sequentially from $575 million in Q1 FY2026, driven by strong performance in the enrichment learning segment, which contributed the majority of the increase. The learning devices segment, however, reported an adjusted operating loss, reflecting a decline in blended average selling price and intensified competition in the device market.
The margin expansion was supported by cost‑control measures and efficiencies in the enrichment business, offsetting the higher selling and marketing expense that rose 46.9 % to $267.3 million. Management noted that the company’s focus on AI‑powered learning solutions and disciplined expansion in existing cities helped maintain pricing power and improve operating leverage.
During the quarter, TAL repurchased $134.7 million of common shares as part of a $600 million share‑repurchase program authorized in July. The repurchases were executed at an average price of roughly $32 per share, underscoring the company’s commitment to returning value to shareholders while maintaining a strong liquidity position. As of August 31 2025, the company held $3,248.8 million in cash, cash equivalents, and short‑term investments, and maintained a low debt‑to‑equity ratio.
Management highlighted ongoing investments in AI‑powered learning solutions and a disciplined expansion strategy aimed at increasing density in existing cities. The company also acknowledged headwinds such as escalating competition in the learning devices market and a fragmented offline enrichment landscape, but emphasized its strategic focus on expanding learning center networks and launching upgraded enrichment programs to sustain growth.
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