TAL Education Group's Q3 FY2026 net profit reaches $131 million, more than quadrupling year-over-year

Beijing News (Reporter Feng Qi) January 29th, Gaotu Techedu Inc. announced its unaudited financial results for the third quarter of fiscal year 2026, ending November 30, 2025. During the reporting period, profits surged significantly, with net profit reaching $131 million, a 466.1% increase compared to the same period last year.

The financial report shows that in the third quarter of fiscal year 2026, Gaotu’s net revenue was $770 million, up 27% from $606.4 million in the same period last year; operating profit was $93.123 million, compared to an operating loss of $17.432 million in the same period last year, turning losses into profits; net profit was $131 million, compared to $23.1 million last year, a 466.1% increase. Gross profit grew from $319.8 million in the same period last year to $431.8 million, a 35% increase, with gross margin rising from 52.7% to 56.1%.

The reporter noted that in the first half of fiscal year 2026, Gaotu maintained a high growth rate of nearly 40% in revenue. In the first quarter of fiscal year 2026, the company’s net income reached $575 million, a 38.8% year-over-year increase; in the second quarter, net income was $861 million, up 39.2% year-over-year. However, the growth rate slowed in the third quarter, with a year-over-year increase of only 27%.

Corresponding to the significant increase in net profit, Gaotu’s sales expenses decreased. The financial report shows that during the reporting period, sales and marketing expenses decreased from $226 million in the third quarter of fiscal year 2025 to $220 million.

Gaotu also announced financial data for the first three quarters of fiscal year 2026 (nine months ending November 30, 2025). During this period, net revenue was $2.207 billion, a 34.5% increase from the same period last year. Net profit attributable to Gaotu was $286 million, a 211.2% increase year-over-year. The gross profit margin was 56.1%, compared to 53.8% in the same period last fiscal year.

In its financial report, Gaotu Education Group stated that the company provides learning solutions for students of all ages through diversified courses. Gaotu President and CFO Peng Zhuangzhuang pointed out that in the third quarter of fiscal year 2026, the company’s net revenue continued to grow steadily. The company remains focused on integrating technology into the learning experience, enhancing content, products, and services to support students’ comprehensive development.