New Oriental responds to the merger of the Study Abroad Business Division

21st Century Business Herald reporter Wang Feng, Beijing report. After news broke in January that New Oriental would combine its study abroad exam training and study abroad consulting businesses, the new business unit head made its first group appearance on March 17 and responded to the business combination.

On March 17, New Oriental held a press conference for its “China’s Students Studying Abroad Development Report.” On-site information showed that New Oriental has established an International Education Business Unit. Sun Tao, Vice President of New Oriental Education & Technology Group and the former CEO of Qiancheng Study Abroad, serves as the Executive Vice President of the business unit. Liu Shuoyang, Vice President of New Oriental Education & Technology Group and the former CEO of the International Education Training Business Unit, serves as the Vice President of the business unit.

International education is New Oriental’s traditional core advantage business since its founding. It is divided into two major segments: study abroad exam training and study abroad consulting. Previously, New Oriental separately set up the International Education Training Business Unit and the Qiancheng Study Abroad business unit.

Earlier in January, there were reports that New Oriental planned to complete the merger of the two business segments before the end of fiscal year 2026 (by the end of May this year).

Complex international and economic conditions have had a significant impact on students studying abroad and related industries. The 2026 fiscal first-quarter financial report released by New Oriental as of August 31, 2025 shows that in that quarter, revenue from study abroad exam training and study abroad consulting grew only about 1.0% and 2.0%, respectively. In the second quarter of fiscal year 2026, the two businesses increased by 4.1% and -3%, respectively.

“Actually, it’s quite easy to understand the integration of New Oriental’s international education segment, because now the market has changed, and the environment has changed.” Sun Tao said at the March 17 press conference.

“Both of the previous business units had very mature approaches and very well-developed operations. The customer groups they served had some overlap. When the market environment changes, when we take actions aimed at the same customer group, can we be more streamlined, and can we be more efficient?” Sun Tao said.

Besides the changing market environment, customer needs are also changing. “New Oriental’s international education business used to be divided into two stages: one is the training stage, and the other is the study abroad application stage. Now we often encounter some customers who decide to take an international education route when their child is already five or six years old. When the child goes abroad for study at age 18, there are more than ten years in between. During this period, we’re unable to define which part of the time is training, which part is for background enhancement, and which part is for applications. So New Oriental made this kind of change around customer behavior,” Liu Shuoyang said.

21st Century Business Herald learned that the integration at the level of New Oriental’s branch schools is already underway. New Oriental’s Executive President and Chief Financial Officer Yang Zhihui previously introduced, at the 2026 fiscal second-quarter earnings call, that it is expected that in the second half of fiscal year 2026, New Oriental’s international education business will still maintain low-single-digit growth. He also pointed out that this business demonstrated strong adaptability in the first half of fiscal year 2026 and further expanded its market share. It is expected that New Oriental will disclose the cost reduction and efficiency gains related to the merger of the business unit in its 2026 fiscal third-quarter earnings call.