TAL Education Group (NYSE: TL ) reported fiscal 2026 third-quarter results that management said showed steady progress on strategic priorities based on student growth, product innovation, and service quality, while acknowledging near-term variability associated with seasonality, competitive pressures and resource allocation decisions.
President and Chief Financial Officer Alex Peng said the company’s Learning Services posted year-over-year revenue growth in offline PEO programs and online enrichment offerings, supported by “steady customer demand” and a portfolio in offline and online formats.
For the quarter, Tal posted net revenues of 70 770.2 million (CNY 5,480.4 million)representing a year-over-year increase 27.0% In US dollar terms and 26.8% In RMB terms. Non-GAAP income from operations was 4 104.0 millionand was non-GAAP net income attributable to TAL 1 141.4 million.
In the Q&A, Peng said that Pew’s year-over-year revenue growth was primarily driven by Enrollment increasewhile the average selling price remained “relatively stable”. He added that the performance has been aligned with the expansion of the company’s learning center network, which Tal said is continuing in a “disciplined” manner, weighing operational readiness, efficiency, and local demand at the district and neighborhood levels.
Deputy Chief Financial Officer Jackson Ding said the Pew Small Class enrichment programs delivered consistent operations and year-over-year growth, driven by enrollment gains. He described ongoing efforts to widen access to enrichment programs aimed at supporting “inclusive development.”
On the online side, Ding said Tal is using technology to increase engagement, citing humanities courses with immersive online classrooms that incorporate virtual settings, interactive activities, and role-playing based on classic literature. The programs also use out-of-class challenges to reinforce gamified mechanisms and concepts during class, he said. Looking ahead, Ding said the company plans to further integrate technology into engagement tools and instructional design, supported by continued investment in content, product development, and services.
Management highlighted learning devices as a long-term focus in the company’s content solutions business, while noting content, hardware and AI comprise a “highly competitive environment.”
Ding said the learning devices business posted year-over-year growth in both revenue and sales volume during the quarter. It also provided measurements of user engagement:
Both Peng and Ding urged companies to move learning tools beyond answer tools and toward AI-enabled learning companions designed to guide students through the process, adapt explanations and assess learning gaps. Ding said Tal’s “AI Think 1-on-1-1” has facilitated “over hundreds of thousands of hours” of guided learning, and that by December 2025, students had activated the company’s AI assistant “Xiao Si”. 1 billion times.
The blended average selling price for learning devices fell, Peng said CNY 4,000reflecting the change in product mix compared to the prior year period. He added that the learning device business reported Adjusted operating loss As it is in the investment stage.
Asked about promotional performance and the competitive landscape, Peng said market share results during the “2011 promotion period” were in line with expectations, and described the broader learning device environment as dynamic as AI advanced education technology is shaped. The rhythmic approach combines vertical domain models with general AI capabilities and aims to emulate teaching methods rather than simply providing answers, he said.
Ding went through profit and expense trends, which highlighted gross margin expansion and reduced sales and marketing intensity. Key figures include:
Price of products rose 18.0% Year after year 8 338.4 million.
Gross profit increased 35.0% Year after year 1 431.8 million.
Gross margin It got better 56.1% from 52.7% A year ago
Selling and marketing expenses Less air 2.8% to 20 220.1 million.
The rate of decline in non-GAAP selling and marketing expenses decreased 28.3% from 36.7%.
Income from operations was .1 93.1 millioncompared to operating loss .4 17.4 million In the previous year period.
Net income attributable to Tel was .6 130.6 millionabove .1 23.1 million A year ago
In response to questions about margin drivers, Ding attributed the year-over-year operating margin improvement mainly to sales and marketing fluctuations and “disciplined cost management”, including lower online marketing and branding costs compared to the same period last year, and seasonality in online enrichment customer acquisition.
However, he cautioned against treating the quarter’s margin performance as a benchmark for future periods, noting that the company manages a portfolio of mature profitable businesses and new initiatives that are still in the investment stage, which could create quarterly volatility. Ding also said the break-even timeline for the learning device business is uncertain.
By November 30, 2025, Tel reported 1 2,146.3 million In cash and cash equivalents, 1 171.1 million In short term investment, and 9 339.3 million In current and non-current restricted cash. There was deferred income 1 1,162.8 million. Net cash provided by operating activities in the quarter was 6 526.7 million.
On the return of capital, Ding said the board has authorized a new share repurchase program in July 2025. 600 million Over the 12 months between October 30, 2025 and January 28, 2026, the company repurchased 844, 856 Common shares for approximately the total consideration . 27.7 million.
Looking ahead, Peng said Rhythm prioritizes the intersection of learning and technology and is consolidating go-to-market capabilities, particularly through more agile channel management for new businesses like learning devices. Management reiterated that near-term performance may be affected by market conditions, investment cycles and seasonal fluctuations, and stated that the company is focused on long-term sustainable growth.
TAL Education Group is a leading provider of after-school tutoring services in China, specializing in K-12 educational instruction. The company offers a range of programs designed to help primary and secondary school students consolidate their core competencies in subjects such as mathematics, English, Chinese and science. Tal leverages both in-person learning centers and digital platforms to deliver its curriculum, which aims to support student development through interactive lessons and personalized study plans.
Founded in 2003 and headquartered in Beijing, TAL Education Group has become one of China’s largest private education firms.
