China's TAL Education Q2 revenue misses estimates

TAL Education

29/10/2026 09:10

Overview
China smart learning firm's fiscal Q2 revenue rose 15.5% yr/yr, missing analyst expectations
Company posted a net loss for fiscal Q2, reversing a profit from a year ago
Company declared a cash dividend and extended its share repurchase program

Outlook
Company says it will focus on technology and educational expertise to drive long-term value
TAL Education plans to strengthen core businesses and enhance student learning experiences
Company did not provide specific financial guidance for the upcoming quarter or full year  in its press release

Result Drivers
LOWER MARKETING COSTS - Co said Q2 selling and marketing expenses fell 15.3% yr/yr
OPERATING COST REDUCTION - Co said Q2 operating costs and expenses declined 0.8% yr/yr
INVESTMENT FLUCTUATIONS - Co said Q2 other expense was mainly due to changes in fair value of certain investments

Company press release: ID:nPn5L4Rvfa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$994.6 mln
$1.08 bln (5 Analysts)
Q2 Net Loss attributable to company
 
$47.4 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 3 "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 $16.00, about 59% above its October 28 closing price of $10.06
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads
Oct 28 - China's New Oriental Education Q1 revenue rises 23%, confirms guidance
Oct 27 - China's Hengrui Pharma nine-month profit rises on out-licensing gains
Oct 28 - China's Xinhua Winshare nine-month revenue falls 5%, profit drops 11%

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)