TAL Education Group Q2 2027 Earnings Recap

TAL shares fell 1.9% after earnings, a roughly flat reaction. Revenue growth slowed to 9% in RMB terms, with management citing Learning Devices as a drag and expecting continued pressure there, while operating margins improved.

Key Takeaways

• Second-quarter revenue was $995 million, up 15% in U.S. dollars and 9% in RMB year over year; management said growth was slower than in previous quarters.
• Peiyou offline revenue grew by double digits, led primarily by enrollment growth; retention in Peiyou enrichment classes was over 80%.
• Learning Devices faced a double-digit contraction in the overall market, intense competition, and rising chip costs. TAL said the business weighed on company-level growth and expects continued pressure.
• Non-GAAP operating income rose more than 100% year over year to $248 million; non-GAAP operating margin increased to 24.9% from 12.5%.
• Learning Device user engagement remained stable, with an average weekly active rate of around 80% and active devices used for an average of one hour per day.