Recently, the two giants in the education and training industry—TAL Education Group and New Oriental—released their interim financial reports for the fiscal year 2025, showcasing their market performance and development strategies. These reports not only reflect the operational status of the companies themselves but also serve as important indicators for the future direction of the industry.
TAL Education Group achieved a net revenue of $606.4 million in the third quarter of the fiscal year 2025, a 62.4% increase compared to $373.5 million in the same period last year. The company's gross profit grew by 59.6% year-on-year, reaching $319.8 million, and it successfully turned a profit with a net income attributable to the company of $23.069 million. Its financial position is also very strong, with total cash and short-term investments amounting to $3.8358 billion.
In contrast, New Oriental reported a net revenue of $1.039 billion in the second quarter of fiscal year 2025, representing a year-on-year increase of 19.4%. Of this, the net revenue from its core education business was $894 million, an increase of 31.3% compared to the previous year. New Oriental's traditional core business continues to grow in the field of overseas exam preparation and consulting, and it has shown strong momentum in emerging businesses, particularly in cultural tourism.
By comparing the performance of both companies, it is clear that TAL Education Group leads significantly in revenue growth, while New Oriental still holds an advantage in quarterly revenue scale. New Oriental's diversification strategy is particularly evident, as it continues to expand in the education sector while actively developing its cultural tourism and e-commerce businesses, creating a healthy revenue structure.
Looking ahead, TAL Education Group will continue to focus on educational technology, launching AI-based learning devices and applications to enhance personalized learning experiences. New Oriental plans to further expand its market share in non-academic tutoring, intelligent learning systems, and other new businesses, aiming to find a balance between revenue and profitability.
As the education industry gradually emerges from the shadows cast by the "Double Reduction" policy, market demand is recovering, and the overall education market is expected to exceed 500 billion yuan by 2024, with the education and training industry reaching a market size of 200 billion yuan. The digital transformation and online education models brought about by technological advancements also present new opportunities for future education and training.
