Revenue growth remains robust at 32.4% year-over-year, though gross margins have compressed to 53.2% as the company shifts toward a hardware-heavy business model.
| Metric | Feb'26 | Feb'25 | Feb'24 | Feb'23 | Feb'22 | Feb'21 | Feb'20 | Feb'19 | Feb'18 | Feb'17 | Feb'16 | Feb'15 | Feb'14 | Feb'13 | Feb'12 | Feb'11 | Feb'10 | Feb'09 |
|---|
| Sales/Revenue | 3.02B | 2.25B | 1.49B | 1.02B | 4.4B | 4.51B | 3.27B | 2.56B | 1.72B | 1.04B | 619.94M | 433.97M | 313.9M | 225.93M | 177.52M | 110.8M | 69.3M | 37.56M |
| Revenue Growth % | 34.21% | 51.08% | 46.58% | -76.9% | -2.46% | 37.8% | 27.89% | 48.37% | 65.66% | 67.94% | 42.85% | 38.25% | 38.93% | 27.27% | 60.22% | 59.87% | 84.54% | - |
| Cost of Goods Sold | 1.35B | 1.05B | 683.84M | 434.78M | 2.21B | 2.05B | 1.47B | 1.16B | 887.3M | 521.32M | 303.63M | 203.07M | 151.54M | 115.75M | 95.59M | 56.25M | 37.66M | 18.59M |
| COGS % of Revenue | 44.65% | 46.66% | 45.91% | 42.79% | 50.18% | 45.57% | 44.87% | 45.43% | 51.45% | 50.07% | 48.98% | 46.79% | 48.28% | 51.23% | 53.85% | 50.77% | 54.34% | 49.51% |
| Gross Profit | 1.67B | 1.2B | 805.57M | 581.3M | 2.19B | 2.45B | 1.8B | 1.4B | 837.41M | 519.77M | 316.31M | 230.9M | 162.35M | 110.18M | 81.93M | 54.55M | 31.95M | 18.96M |
| Gross Margin % | 55.35% | 53.34% | 54.09% | 57.21% | 49.82% | 54.43% | 55.13% | 54.57% | 48.55% | 49.93% | 51.02% | 53.21% | 51.72% | 48.77% | 46.15% | 49.23% | 46.1% | 50.49% |
| Gross Profit Growth % | 39.28% | 49% | 38.58% | -73.48% | -10.72% | 36.05% | 29.22% | 66.74% | 61.11% | 64.33% | 36.99% | 42.22% | 47.35% | 34.48% | 50.2% | 70.72% | 68.51% | - |
| Operating Expenses | 1.39B | 1.2B | 891.18M | 694.3M | 2.32B | 2.81B | 1.65B | 1.06B | 631.94M | 388.55M | 234.58M | 164.11M | 106.06M | 78.8M | 60.98M | 29.08M | 69.3M | 8.26M |
| OpEx % of Revenue | 46.18% | 53.48% | 59.83% | 68.33% | 52.79% | 62.22% | 50.34% | 41.5% | 36.64% | 37.32% | 37.84% | 37.82% | 33.79% | 34.88% | 34.35% | 26.24% | 100% | 21.99% |
| Selling, General & Admin | 1.39B | 1.21B | 891.18M | 694.3M | 2.32B | 2.81B | 1.65B | 1.06B | 631.94M | 388.55M | 234.58M | 164.11M | 106.06M | 78.8M | 60.98M | 29.08M | 16.48M | 8.26M |
| SG&A % of Revenue | 46.18% | 53.67% | 59.83% | 68.33% | 52.79% | 62.22% | 50.34% | 41.5% | 36.64% | 37.32% | 37.84% | 37.82% | 33.79% | 34.88% | 34.35% | 26.24% | 23.78% | 21.99% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | -4.23M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 52.82M | 0 |
| Operating Income | 277.07M | -3.15M | -85.61M | -113M | -130.52M | -351.27M | 156.94M | 334.33M | 205.47M | 131.23M | 81.72M | 66.78M | 56.29M | 31.38M | 20.95M | 25.47M | 15.47M | 10.7M |
| Operating Margin % | 9.17% | -0.14% | -5.75% | -11.12% | -2.97% | -7.79% | 4.8% | 13.07% | 11.91% | 12.6% | 13.18% | 15.39% | 17.93% | 13.89% | 11.8% | 22.99% | 22.32% | 28.5% |
| Operating Income Growth % | 8881.9% | 96.31% | 24.24% | 13.42% | 62.84% | -323.82% | -53.06% | 62.72% | 56.57% | 60.58% | 22.37% | 18.64% | 79.37% | 49.79% | -17.75% | 64.69% | 44.54% | - |
| EBITDA | 349.76M | 49.14M | -60.52M | -76.69M | 55.08M | -189.78M | 272.1M | 423.02M | 265.01M | 164.73M | 100.91M | 79.25M | 66.3M | 38.49M | 26.65M | 28.95M | 17.58M | 11.72M |
| EBITDA Margin % | 11.58% | 2.18% | -4.06% | -7.55% | 1.25% | -4.21% | 8.31% | 16.53% | 15.37% | 15.82% | 16.28% | 18.26% | 21.12% | 17.04% | 15.01% | 26.12% | 25.37% | 31.21% |
| EBITDA Growth % | 611.72% | 181.2% | 21.08% | -239.22% | 129.02% | -169.74% | -35.68% | 59.62% | 60.88% | 63.25% | 27.33% | 19.53% | 72.24% | 44.47% | -7.95% | 64.64% | 50% | - |
| D&A (Non-Cash Add-back) | 72.69M | 52.3M | 25.09M | 36.32M | 185.6M | 161.49M | 115.16M | 88.69M | 59.55M | 33.5M | 19.18M | 12.47M | 10.01M | 7.11M | 5.69M | 3.47M | 2.11M | 1.02M |
| EBIT | 687.11M | 122.58M | 11.23M | -111.56M | -760.87M | -351.27M | 156.94M | 334.33M | 205.47M | 131.23M | 81.72M | 66.78M | 56.29M | 31.38M | 20.95M | 25.47M | 15.47M | 10.7M |
| Net Interest Income | 62.26M | 83.48M | 84.93M | 61.56M | 95.31M | 97.29M | 61.17M | 41.99M | 23.2M | 4.99M | 10.23M | 10.8M | 9.44M | 5.34M | 3.5M | 1.29M | 283.16K | 76.95K |
| Interest Income | 62.26M | 83.48M | 84.93M | 61.56M | 103.18M | 114.23M | 72.99M | 59.61M | 39.84M | 18.13M | 17.73M | 16.61M | 9.44M | 5.34M | 3.5M | 1.35M | 323.86K | 119.92K |
| Interest Expense | 0 | 0 | 0 | 0 | 7.87M | 16.95M | 11.82M | 17.63M | 16.64M | 13.14M | 7.5M | 5.81M | 0 | 0 | 0 | 59.21K | 40.64K | 42.97K |
| Other Income/Expense | 410.04M | 125.73M | 96.85M | 1.44M | -638.23M | 137.66M | -215.25M | 105.99M | 35.2M | 15.05M | 54.51M | 9.73M | 10.99M | 6.16M | 7.52M | 1.58M | 158.85K | -1.38M |
| Pretax Income | 687.11M | 122.58M | 11.23M | -111.56M | -768.75M | -213.61M | -58.31M | 440.32M | 240.67M | 146.27M | 136.24M | 76.51M | 67.29M | 37.54M | 28.47M | 27.06M | 15.63M | 9.32M |
| Pretax Margin % | 22.75% | 5.45% | 0.75% | -10.98% | -17.48% | -4.74% | -1.78% | 17.21% | 13.95% | 14.05% | 21.98% | 17.63% | 21.44% | 16.62% | 16.04% | 24.42% | 22.55% | 24.81% |
| Income Tax | 154.99M | 38.32M | 15.37M | 19.94M | 397.72M | -70.11M | 69.31M | 76.38M | 44.91M | 34M | 33.48M | 9.37M | 6.68M | 4.1M | 4.16M | 2.63M | 1.38M | 2.02M |
| Effective Tax Rate % | 22.56% | 31.26% | 136.81% | -17.87% | -51.74% | 32.82% | -118.87% | 17.35% | 18.66% | 23.24% | 24.58% | 12.24% | 9.93% | 10.92% | 14.6% | 9.73% | 8.82% | 21.7% |
| Net Income | 532.73M | 84.59M | -3.57M | -135.12M | -1.14B | -116.35M | -110.17M | 366.65M | 199.56M | 116.66M | 102.88M | 67.16M | 60.61M | 33.44M | 24.31M | 24.09M | 14.25M | 7.3M |
| Net Margin % | 17.64% | 3.76% | -0.24% | -13.3% | -25.87% | -2.58% | -3.37% | 14.33% | 11.57% | 11.21% | 16.59% | 15.47% | 19.31% | 14.8% | 13.7% | 21.74% | 20.56% | 19.43% |
| Net Income Growth % | 529.77% | 2469.15% | 97.36% | 88.13% | -878.25% | -5.61% | -130.05% | 83.73% | 71.07% | 13.39% | 53.19% | 10.81% | 81.24% | 37.54% | 0.94% | 69.05% | 95.28% | - |
| Net Income (Continuing) | 532.12M | 84.26M | -4.14M | -131.5M | -1.17B | -143.49M | -127.62M | 363.94M | 195.76M | 112.27M | 102.75M | 67.14M | 60.61M | 33.44M | 24.31M | 24.42M | 14.25M | 7.3M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -335.03K | 0 | 0 |
| Minority Interest | -750.98K | -169K | -23.33M | -23.73M | -27.89M | 2.73M | 28.46M | 46.73M | 19.72M | 36.62M | 3.76M | 278.24K | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 2.76 | 1.26 | -0.05 | -1.92 | -15.90 | -1.71 | -1.83 | 5.40 | 2.97 | 1.96 | 1.78 | 1.25 | 1.16 | 0.62 | 0.48 | 0.53 | 0.33 | 0.17 |
| EPS Growth % | 119.05% | 2472.88% | 97.23% | 87.92% | -829.82% | 6.56% | -133.89% | 81.82% | 51.53% | 10.11% | 42.4% | 7.76% | 87.1% | 29.17% | -9.43% | 60.61% | 94.12% | - |
| EPS (Basic) | 2.79 | 1.26 | -0.06 | -1.92 | -15.90 | -1.71 | -1.83 | 5.67 | 3.51 | 2.14 | 1.87 | 1.25 | 1.16 | 0.64 | 0.48 | 0.53 | 0.33 | 0.18 |
| Diluted Shares Outstanding | 192.93M | 67.72M | 67.09M | 70.15M | 70.89M | 67.19M | 65.4M | 66.07M | 64.13M | 62.21M | 60.41M | 53.99M | 52.62M | 51.69M | 50.92M | 44.58M | 40.84M | 41.93M |
| Basic Shares Outstanding | 190.42M | 67.72M | 58.67M | 69.94M | 70.87M | 67.15M | 64.92M | 66.05M | 63.34M | 58.44M | 56.31M | 53.99M | 52.62M | 51.69M | 50.31M | 43.1M | 39.2M | 40.3M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | 20.63% | - | - | - | - | 116.72% | - | 124.55% | 10.12% | - |
Regulatory and Policy Sensitivity
According to the latest quarterly financial data, TAL achieved a 32.4% year-over-year revenue increase in 2026Q4, signaling that the company's strategic pivot toward hardware-integrated learning services is successfully capturing market demand despite the challenging regulatory environment that previously dismantled its core academic tutoring business model.
The consistent double-digit growth rates observed over the last ten quarters suggest that the company has successfully transitioned its customer base to non-academic enrichment and hardware-led offerings. Investors should monitor whether this trajectory remains sustainable as the company scales its international Think Academy segment, which may face different competitive pressures than the domestic market.
As reported in recent income statements, gross margins have fluctuated between 52% and 58.9%, reflecting a structural shift toward hardware-heavy revenue streams that inherently carry lower profitability profiles compared to the high-margin, pure-play educational software services that defined the company's pre-2021 operational model.
The current gross margin of 53.2% in 2026Q4 indicates that the hardware-software ecosystem is still finding its equilibrium in terms of production costs and pricing power. Analysts should investigate if the company can achieve greater economies of scale in its xPad manufacturing to prevent further margin erosion as the hardware segment becomes a larger portion of the total revenue mix.
Based on the provided financial figures, operating income has shown significant volatility, with the 2026Q4 operating margin of 9.0% suggesting that while the company is scaling, the high fixed costs associated with R&D and personnel continue to constrain the conversion of gross profit into meaningful operating leverage.
The inconsistency in operating margins, which dipped into negative territory as recently as 2025Q4, implies that the company's cost structure remains highly sensitive to fluctuations in revenue volume. Future performance will likely depend on management's ability to optimize SG&A expenses while maintaining the necessary investment in AI-integrated educational technology to stay ahead of competitors.
Financial statements indicate that the 2026Q4 net margin of 30.5% appears significantly elevated compared to historical averages, suggesting that reported net income may be bolstered by non-operating gains or interest income derived from the company's substantial cash reserves rather than purely from core operational performance.
The discrepancy between operating margins and net margins warrants further investigation into the composition of non-operating income, particularly given the company's $1.75B cash position. Investors should be cautious in extrapolating these net income figures as a proxy for sustainable operational profitability, as they may mask underlying volatility in the core business.
While the company reports strong top-line growth, a critical analysis of the income statement suggests that the reliance on hardware sales may be a transitory phenomenon, as the market for educational tablets could face saturation or commoditization risks that would threaten the long-term durability of current revenue trends.
Short-term growth may be driven by pent-up demand for new learning devices, but the lack of clear R&D expense disclosure in recent periods makes it difficult to assess the long-term innovation pipeline. If the hardware attachment rate to premium content services fails to materialize, the company could face significant inventory and margin risks that are currently not fully reflected in the valuation.
Quick answers to the most common questions about buying TAL stock.
For fiscal year 2026, TAL Education Group (TAL) reported total revenue of $3.02B. This represents a 7941.8% increase compared to $37.6M in 2009.
TAL Education Group (TAL) is profitable, generating $532.7M in net income for the fiscal year ending 2026 with a net profit margin of 17.6%.
TAL Education Group (TAL) reported an operating income of $277.1M, resulting in an operating profit margin of 9.2%. This margin reflects the operational efficiency of the business before interest and taxes.
TAL Education Group (TAL) generated $1.67B in gross profit for the year, representing a gross profit margin of 55.4%. This demonstrates the company's core pricing power and production efficiency.