China's TAL Education Q1 revenue up 39% but misses expectations

TAL Education

31/07/2025 10:10

Overview

TAL Education fiscal Q1 revenue grows 38.8% yr/yr, misses analyst expectations, per LSEG data

Co reports operating income of $14.3 mln, reversing prior yr loss

Earlier in the week, TAL announced $600 mln share repurchase plan

Result Drivers

LEARNING SERVICES - Growth in learning services contributed to revenue increase, per CFO Alex Peng

AI-POWERED DEVICES - New AI-powered devices, including P4, S4, and T4 models, expanded audience reach

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Miss
$575 mln
$584.20 mln (5 Analysts)
Q1 Net Income
$31.30 mln
Q1 Operating Income
$14.30 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the miscellaneous educational service providers peer group is "buy"

Wall Street's median 12-month price target for TAL Education Group is $12.63, about 20.1% above its July 30 closing price of $10.09

The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 22 three months ago

Press Release: ID:nPn76VgcXa

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)