Revenue growth has accelerated to 31.9% YoY in 2027Q1, while operating margins have expanded dramatically to 18.1% from negative levels in 2025, indicating successful scale and cost discipline.
TAL Education Group (TAL) annual income statement — 18-year revenue, gross profit & net income history
| Metric | TTM | 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 | 3.2B | 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 % | 32.64% | 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 | 1.41B | 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 | 1.79B | 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 % | 56.01% | 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 | 1.39B | 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 | 1.39B | 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 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | -1000K | 0 | -4.23M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 52.82M | 0 |
| Operating Income | 399.41M | 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 % | 12.49% | 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 | 781.74M | 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 % | 24.45% | 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 % | 416.77% | 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) | 0 | 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 | 781.74M | 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 | 53.32M | 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 | 53.32M | 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 | 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 | 796.71M | 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 | 1.2B | 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 % | 37.4% | 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 | 287.54M | 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 % | 24.04% | 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 | 909.2M | 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 % | 28.43% | 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 % | 770.29% | 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) | 908.58M | 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 | 0 | -335.03K | 0 | 0 |
| Minority Interest | -832K | -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) | 4.88 | 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 % | 301.65% | 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 | 186.31M | 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 | 184.41M | 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% | - |
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.
Key Metrics
Top Statement Risk
Regulatory reclassification risk
Robust Growth Driven by Hardware Pivot
TAL's revenue growth has accelerated to 31.9% YoY in 2027Q1, a significant improvement from the 27.0% growth seen in 2026Q3, suggesting the company's strategic shift towards learning services and hardware is gaining substantial commercial traction.
The growth trajectory shows a clear acceleration from the mid-20s range to over 30%, indicating that the new business model is not just stabilizing but expanding. This momentum appears to be driven by the successful scaling of the xPad hardware ecosystem and non-academic enrichment services, which have replaced the lost revenue from the pre-regulation academic tutoring business. The durability of this growth will depend on the company's ability to maintain high attachment rates for content subscriptions on its devices.
Gross Margin Expansion Signals Mix Shift
Gross margins expanded to 57.8% in 2027Q1, up from 52.0% in 2025Q4, which suggests a favorable shift in revenue mix towards higher-margin digital content and services, potentially offsetting the typically lower margins associated with hardware sales.
The structural improvement in gross margin is a critical positive development, indicating that TAL is not merely growing revenue but is doing so with increasing profitability per dollar of sales. This trend implies that the company is successfully leveraging its proprietary content and AI-driven platform to command better pricing or achieve cost efficiencies in its service delivery. Investors should monitor whether this margin level is sustainable as the hardware business scales, as it could be influenced by promotional pricing or changes in the mix between device sales and recurring subscriptions.
Operating Leverage Unlocked by Scale
Operating income surged to $137.2M in 2027Q1, representing an 18.1% operating margin, a dramatic turnaround from the negative margins seen in 2025, which indicates the company has achieved significant operating leverage as its fixed cost base is now covered by a much larger revenue base.
The inflection from operating losses to double-digit operating margins demonstrates powerful operating leverage, where incremental revenue is flowing through to profit at a high rate. This suggests that management's cost discipline during the pivot, particularly in controlling SG&A relative to revenue growth, has been effective. The primary driver appears to be the scaling of the new business lines, which has allowed TAL to absorb its high fixed costs for R&D and learning centers, turning them into a competitive advantage rather than a financial burden.
Net Income Boosted by Non-Operating Items
The 53.8% net margin in 2027Q1 is significantly higher than the 18.1% operating margin, suggesting that a substantial portion of net income is derived from non-operating items such as interest income on its large cash balance or one-time gains, rather than core operational performance.
This large discrepancy between operating and net margins warrants careful scrutiny, as it indicates that reported earnings quality may be inflated by non-recurring or non-core sources. Given TAL's fortress balance sheet with $1.75B in cash, a significant portion of this net income likely stems from interest income, which is sustainable but not reflective of the core business's earning power. Analysts should focus on operating income and adjusted EPS to gauge the true underlying profitability of the education and hardware services.
SG&A Discipline Underpins Profitability
SG&A expenses as a percentage of revenue have declined from 59.1% in 2025Q1 to 39.7% in 2027Q1, demonstrating exceptional cost control and operational efficiency that has been a primary driver of the company's return to profitability.
The dramatic reduction in SG&A leverage is a testament to management's ability to streamline operations and control overhead during a period of significant business model transformation. This discipline suggests that the company has successfully rationalized its cost structure, likely through optimizing its physical footprint and administrative functions, while investing in scalable digital infrastructure. The sustainability of this low SG&A ratio will be key to maintaining operating margins as the company continues to invest in growth initiatives like the Think Academy overseas expansion.
Sustainability of Growth and Margin Mix
The strongest challenge to the bull case is whether the current high growth and margin expansion are sustainable, or if they represent a temporary surge from pent-up demand and a favorable product mix that may normalize as the market matures.
Short-sellers would focus on the risk that the 30%+ revenue growth rate is unsustainable and could decelerate sharply once the initial wave of adoption for the xPad and new enrichment services is complete. Furthermore, the high net margin is heavily dependent on non-operating income, and any compression in interest rates or a shift in capital allocation could reduce this tailwind. The core risk is that TAL is transitioning from a high-growth, high-margin software-like business to a more capital-intensive hardware model, which could lead to margin compression over the long term if competitive pressures intensify in the educational device market.