New Oriental, TAL, Youdao and Gaotu Report Earnings as AI Becomes Growth Theme

New Oriental, TAL, NetEase Youdao and Gaotu recently released their latest quarterly results. New Oriental reported fiscal 2026 net revenue of US$5.661 billion, up 15.5% year over year; TAL reported fiscal 2027 first-quarter net revenue of US$758 million, up 31.9%; Youdao reported second-quarter net revenue of RMB1.47 billion, up 3.5%, its eighth consecutive quarter of operating profit; Gaotu reported second-quarter net revenue of RMB1.67 billion, up 20.2%, with its operating loss narrowing 38.1%. All four are embedding AI into teaching systems, learning hardware or large-model products.

These earnings offer a verifiable window into how China's leading education companies are deploying AI: New Oriental embeds AI into its OMO teaching system, TAL's learning devices exceed 2 million weekly active devices and it launched the T6 series, Youdao launched the Confucius 4 large model, and Gaotu proposed a three-teacher model. For parents and schools, the supply of AI learning hardware and subscription services is increasing; for product practitioners, the AI investment directions of leading companies and the competitive landscape of hardware entry points are taking shape. It should be noted that the original text provides no independent quantitative results on how AI products affect learning outcomes or profit contribution, so judgments remain limited to business arrangements. Leading education companies are embedding AI into teaching systems, learning hardware and large models, further concentrating the supply of AI learning products and competition around agents and hardware entry points. Learning devices and AI learning hardware have become a new battleground for New Oriental, TAL and Youdao, intensifying competition for families' education budgets and usage time.