TAL Education Group (NYSE:TAL) Shares Gap Up on Better-Than-Expected Earnings

TAL Education Group (NYSE:TAL)’s stock price gapped up prior to trading on Thursday following a stronger than expected earnings report. The stock had previously closed at $10.76, but opened at $11.86. TAL Education Group shares last traded at $11.9850, with a volume of 5,890,549 shares changing hands.

The company reported $0.21 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.16 by $0.05. The company had revenue of $861.35 million during the quarter, compared to the consensus estimate of $819.03 million. TAL Education Group had a net margin of 9.89% and a return on equity of 7.76%.

Key TAL Education Group News

Here are the key news stories impacting TAL Education Group this week:

• Positive Sentiment: Q3 blowout: TAL reported $0.25 EPS vs. $0.04 expected and wide y/y revenue growth (net revenues US$770.2M vs US$606.4M a year ago), which triggered large positive market moves and upbeat call/takeaway coverage. PR Newswire: Q3 Results
• Positive Sentiment: Analyst upgrade: Macquarie moved TAL from Neutral to Outperform and set an $18 price target (~40% upside from current levels), adding institutional momentum that could support further upside. The Fly: Macquarie Upgrade
• Positive Sentiment: Options activity: Unusually large call buying (8,855 calls, ~477% above average) suggests short-term bullish positioning by some traders, which can amplify moves on further positive catalysts.
• Neutral Sentiment: Earnings commentary & highlights: Management and analysts emphasized robust revenue growth and strategic adoption of AI-driven device engagement; read the earnings highlights and full call transcript for detail on product adoption and monetization plans. Yahoo: Q3 Highlights
• Negative Sentiment: Guidance caution: Management signaled moderation in growth rate for H2 FY2026 despite strong AI-device engagement, which could temper investor enthusiasm if margins or growth guidance slip. MSN: Moderation in H2 Growth

Analysts Set New Price Targets

A number of research firms recently issued reports on TAL. JPMorgan Chase & Co. upgraded TAL Education Group from a “neutral” rating to an “overweight” rating and set a $16.00 price objective for the company in a report on Thursday, October 30th. Zacks Research downgraded TAL Education Group from a “strong-buy” rating to a “hold” rating in a research report on Monday, December 29th. Macquarie raised shares of TAL Education Group from a “neutral” rating to an “outperform” rating and set a $18.00 price target for the company in a research note on Friday. Wall Street Zen downgraded shares of TAL Education Group from a “buy” rating to a “hold” rating in a report on Saturday, January 17th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of TAL Education Group in a research report on Monday, December 29th. Two investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $15.18.

Hedge Funds Weigh In On TAL Education Group

Hedge funds and other institutional investors have recently made changes to their positions in the company. PNC Financial Services Group Inc. raised its position in TAL Education Group by 8.6% during the third quarter. PNC Financial Services Group Inc. now owns 15,185 shares of the company’s stock worth $170,000 after acquiring an additional 1,202 shares in the last quarter. HighVista Strategies LLC raised its holdings in shares of TAL Education Group by 8.3% in the 3rd quarter. HighVista Strategies LLC now owns 19,600 shares of the company’s stock valued at $220,000 after purchasing an additional 1,500 shares during the period. Greenleaf Trust lifted its stake in TAL Education Group by 5.1% in the 4th quarter. Greenleaf Trust now owns 32,625 shares of the company’s stock valued at $356,000 after purchasing an additional 1,597 shares during the last quarter. Public Sector Pension Investment Board lifted its stake in TAL Education Group by 1.0% in the 2nd quarter. Public Sector Pension Investment Board now owns 157,482 shares of the company’s stock valued at $1,609,000 after purchasing an additional 1,600 shares during the last quarter. Finally, Envestnet Asset Management Inc. grew its holdings in TAL Education Group by 12.2% during the third quarter. Envestnet Asset Management Inc. now owns 17,614 shares of the company’s stock worth $197,000 after purchasing an additional 1,913 shares during the period. 37.79% of the stock is owned by institutional investors.

TAL Education Group Price Performance

The business has a 50-day simple moving average of $11.21 and a two-hundred day simple moving average of $11.14. The stock has a market cap of $7.73 billion, a price-to-earnings ratio of 26.44, a P/E/G ratio of 0.78 and a beta of 0.06.

About TAL Education Group

TAL Education Group is a leading provider of after-school tutoring services in China, specializing in K-12 academic instruction. The company offers a range of programs designed to help primary and secondary school students strengthen their core competencies in subjects such as mathematics, English, Chinese language and science. TAL leverages both in-person learning centers and digital platforms to deliver its curriculum, aiming to support student progress through interactive lessons and personalized study plans.

Founded in 2003 and headquartered in Beijing, TAL Education Group has grown into one of China’s largest private education firms.