TAL Education Group filed its unaudited financial results for the second quarter of fiscal year 2027, covering the three months ended August 31, 2026, announced on October 29, 2026, alongside notice of an Annual General Meeting.

Key Highlights

  • Q2 net revenues of US$994.6 million, up 15.5% from US$861.4 million in the same quarter of the prior year, according to the filing.
  • Income from operations reached US$235.9 million, compared to US$96.1 million in the second quarter of fiscal year 2026, a 145.4% increase.
  • Net loss attributable to TAL was US$47.4 million, a swing from net income of US$124.1 million in the same period of the prior year, driven in part by other expense of US$189.7 million from fair value fluctuations in certain investments.
  • Basic and diluted net loss per ADS were both US$0.09; three ADSs represent one Class A common share, as disclosed in the filing.
  • Cash, cash equivalents and short-term investments totaled US$2,748.5 million as of August 31, 2026, compared to US$3,239.3 million as of February 28, 2026.
  • Deferred revenue stood at US$930.4 million as of August 31, 2026, up from US$882.2 million as of February 28, 2026.
  • Six-month net income attributable to TAL was US$360.6 million, compared to US$155.4 million for the same period of the prior year, a 132.1% increase.

TAL Education Group's Q2 FY2027 Results: Revenue Growth Alongside a Quarterly Net Loss

TAL Education Group (NYSE:TAL) reported second-quarter fiscal year 2027 net revenues of US$994.6 million, a 15.5% increase from US$861.4 million in the comparable prior-year period, according to the filing. Gross profit rose 21.1% to US$594.6 million, with gross margin improving to 59.8% from 57.0% in the second quarter of fiscal year 2026. Operating costs and expenses declined 0.8% to US$758.8 million, with selling and marketing expenses falling 15.3% to US$226.4 million, partially offset by cost of revenues rising 8.0% to US$400.0 million.

Despite the operating improvement, the company reported a net loss attributable to TAL of US$47.4 million for the quarter, compared to net income of US$124.1 million in the same period of the prior year. The filing attributed the reversal primarily to other expense of US$189.7 million, which it stated was "mainly driven by fluctuations in the fair value of certain investments," compared to other income of US$67.1 million in the prior-year quarter. Income tax expense also increased to US$135.9 million from US$51.1 million, which the filing attributed to "changes in deferred tax liabilities relating to withholding tax."

For the six months ended August 31, 2026, net revenues reached US$1,753.0 million, up 22.0% from US$1,436.4 million. Six-month income from operations was US$373.1 million, up from US$110.4 million. Net cash used in operating activities for the second quarter was US$179.1 million. Alex Peng, TAL's President and Chief Financial Officer, stated in the release that the company "delivered steady revenue growth and continued to improve operational efficiency" in the quarter.

What Was Disclosed

TAL Education Group disclosed unaudited second-quarter and six-month fiscal year 2027 financial results, covering the periods ended August 31, 2026, including revenues, operating results, net income or loss figures, cash position, and deferred revenue, along with notice of an Annual General Meeting.