TAL Education Group (NYSE:TAL) Posts Earnings Results, Beats Estimates By $0.30 EPS

Key Points

• TAL reported Q4 EPS of $0.44 versus a consensus of $0.14 (beat by $0.30), with Q4 net revenues of $802.4 million (up 31.5% YoY) and non‑GAAP net income of $254.5 million, marking a swing to profitability and quarter‑over‑quarter margin improvement.
• Q4 other income jumped to $275.0 million from fair‑value gains on investments that management called a one‑time event, and operating cash used was about $215.0 million despite balance sheet liquidity of roughly $1.524 billion cash plus $1.715 billion short‑term investments.
• Shares fell about 11.2% to $10.69 on the report; analysts maintain a consensus "Hold" rating with a $12.81 price target (one Buy, four Holds).

TAL Education Group (NYSE:TAL - Get Free Report) posted its earnings results on Thursday. The company reported $0.44 EPS for the quarter, topping analysts' consensus estimates of $0.14 by $0.30, Zacks reports. TAL Education Group had a net margin of 9.89% and a return on equity of 7.81%.

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

• Q4 net revenues were $802.4 million (up 31.5% YoY in USD) and non‑GAAP net income attributable to TAL was $254.5 million, marking a clear swing to profitability and quarter‑over‑quarter margin improvement.
• Offline Peiyou small‑class remains the largest revenue driver with ~80% retention and measured expansion into five new cities (now covering >40 cities), but management expects revenue growth to gradually moderate in FY2027 as expansion prioritizes density and quality.
• The learning devices business grew year‑over‑year and launched the X5 Ultra (≈80% weekly active users, ~1 hour daily use), though device growth is shifting from rapid expansion to moderate pace and management is mitigating memory cost pressure via SKU, inventory and mix optimization.
• Q4 other income jumped to $275.0 million due to fair‑value gains on investments, which management called a one‑time event and warned should not be treated as a baseline for future profitability.
• Balance sheet liquidity is strong with about $1.524 billion cash and $1.715 billion short‑term investments (deferred revenue ~$882.2 million), but operating cash used was ~$215.0 million in the quarter and share repurchases to date have been minimal (~$3.3 million).

TAL Education Group Stock Down 11.2%

NYSE TAL traded down $1.35 during trading hours on Thursday, hitting $10.69. The company had a trading volume of 5,337,464 shares, compared to its average volume of 3,838,185. TAL Education Group has a fifty-two week low of $8.50 and a fifty-two week high of $13.37. The firm has a market cap of $6.51 billion, a P/E ratio of 22.34 and a beta of 0.15. The business has a fifty day simple moving average of $11.19 and a 200-day simple moving average of $11.33.

Analysts Set New Price Targets

A number of analysts recently issued reports on TAL shares. Weiss Ratings restated a "hold (c)" rating on shares of TAL Education Group in a research note on Monday, December 29th. Wall Street Zen upgraded TAL Education Group from a "hold" rating to a "buy" rating in a research report on Sunday, March 8th. Finally, Zacks Research lowered TAL Education Group from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, March 31st. One analyst has rated the stock with a Buy rating and four have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus price target of $12.81.

Hedge Funds Weigh In On TAL Education Group

Institutional investors have recently modified their holdings of the company. Quarry LP bought a new position in shares of TAL Education Group during the third quarter worth about $42,000. DV Equities LLC bought a new position in shares of TAL Education Group during the fourth quarter worth about $49,000. Daiwa Securities Group Inc. grew its position in shares of TAL Education Group by 194.9% during the fourth quarter. Daiwa Securities Group Inc. now owns 5,750 shares of the company's stock worth $63,000 after acquiring an additional 3,800 shares during the last quarter. CIBC Asset Management Inc bought a new position in shares of TAL Education Group during the fourth quarter worth about $120,000. Finally, Brooklyn Investment Group grew its position in shares of TAL Education Group by 386.0% during the third quarter. Brooklyn Investment Group now owns 11,080 shares of the company's stock worth $124,000 after acquiring an additional 8,800 shares during the last quarter. Institutional investors own 37.79% of the company's stock.

About TAL Education Group

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.

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