TAL Education Group (NYSE:TAL) Posts Quarterly Earnings Results

TAL Education Group (NYSE:TAL) posted its quarterly earnings results on Thursday. The company reported $0.23 EPS for the quarter, topping analysts’ consensus estimates of $0.04 by $0.19, Zacks reports. TAL Education Group had a return on equity of 4.71% and a net margin of 6.45%.

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

• Q3 net revenues rose 27% YoY to $770.2M (CNY 5,480.4M), with non-GAAP operating income of $104.0M and non-GAAP net income of $141.4M, indicating strong top-line recovery.
• Gross profit increased 35% YoY and gross margin expanded to 56.1%, with income from operations turning positive at $93.1M versus a loss a year ago, helped by disciplined cost and marketing control.
• The learning device business delivered volume growth and high engagement (~80% weekly active, ~1 hour/day) but remains in an investment phase with an adjusted operating loss, a blended ASP below CNY 4,000, and an uncertain break-even timeline.
• Strong liquidity and shareholder support: $2.15B cash & equivalents plus a board-authorized $600M share repurchase program (≈$27.7M repurchased to date) provide financial flexibility.
• Management flagged potential near-term variability and limited visibility—expecting moderated YoY growth in H2 FY26—due to seasonal demand shifts, competitive pressures, and deliberate resource reallocation for long-term initiatives.

TAL Education Group Trading Up 12.6%

Shares of NYSE:TAL traded up $1.36 during mid-day trading on Thursday, reaching $12.12. The stock had a trading volume of 9,189,369 shares, compared to its average volume of 3,913,839. The company has a market cap of $7.38 billion, a P/E ratio of 41.79, a price-to-earnings-growth ratio of 0.66 and a beta of 0.06. TAL Education Group has a 1 year low of $8.50 and a 1 year high of $15.30. The business’s 50 day moving average price is $11.13 and its 200 day moving average price is $11.11.

Analyst Ratings Changes

TAL has been the subject of a number of recent analyst reports. Wall Street Zen lowered TAL Education Group from a “buy” rating to a “hold” rating in a report on Saturday, January 17th. Weiss Ratings restated a “hold (c)” rating on shares of TAL Education Group in a research report on Monday, December 29th. JPMorgan Chase & Co. raised TAL Education Group from a “neutral” rating to an “overweight” rating and set a $16.00 price objective for the company in a research note on Thursday, October 30th. Finally, Zacks Research lowered TAL Education Group from a “strong-buy” rating to a “hold” rating in a research note on Monday, December 29th. One equities research analyst has rated the stock with a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat.com, TAL Education Group presently has a consensus rating of “Hold” and an average price target of $12.81.

Institutional Trading of TAL Education Group

Hedge funds have recently modified their holdings of the company. AQR Capital Management LLC purchased a new stake in TAL Education Group in the first quarter valued at about $258,000. State Street Corp raised its stake in shares of TAL Education Group by 2.2% during the 2nd quarter. State Street Corp now owns 7,536,671 shares of the company’s stock valued at $77,025,000 after buying an additional 165,662 shares during the last quarter. AXA S.A. purchased a new stake in shares of TAL Education Group in the second quarter worth about $284,000. Quantinno Capital Management LP grew its holdings in TAL Education Group by 43.1% during the second quarter. Quantinno Capital Management LP now owns 35,750 shares of the company’s stock worth $365,000 after acquiring an additional 10,775 shares during the period. Finally, California State Teachers Retirement System raised its position in TAL Education Group by 0.9% during the second quarter. California State Teachers Retirement System now owns 267,434 shares of the company’s stock valued at $2,733,000 after acquiring an additional 2,275 shares in the last quarter. 37.79% of the stock is owned by hedge funds and other institutional investors.

TAL Education Group Company Profile

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.