TAL Education Q1 2027: 161% EPS Beat Backed by 31.9% Revenue Growth
As seen on the 24/7 Wall St. homepage on July 30, 2026.
TAL crushed consensus with a 161% EPS beat as operating income surged 910% year-over-year, though $405 million in investment gains inflated the bottom line. Strip away those fair-value windfalls and the core story is compelling: revenue jumped 31.9%, deferred revenue hit $1.22 billion signaling strong forward momentum, and the company cut selling expenses 4.8% while expanding gross margin to 57.8%.
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TAL Education reported Q1 2027 earnings per share of $0.75 against a consensus estimate of $0.29, a beat of roughly 161%. Operating income surged 910% year-over-year, though the headline numbers were meaningfully boosted by $405 million in investment gains tied to fair-value windfalls. Stripping those out, the underlying business still delivered a strong quarter.
Revenue came in at $758.4 million, topping estimates of $721.1 million by about 5.2%. Gross margin expanded to 57.8%, and the company trimmed selling expenses by 4.8%, pointing to improving operating discipline. Deferred revenue reached $1.22 billion, a forward-looking indicator that suggests customer demand heading into the next quarter remains robust.
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TAL's EPS trajectory over the past several quarters reinforces that this is not a one-quarter story. Reported EPS has climbed from $0.07 in Q1 2026 to $0.45 in Q4 2026 and now $0.75 in Q1 2027, consistently outpacing analyst estimates. Investors will want to watch whether core profitability can hold as the $405 million in investment gains may not recur at the same scale.
Mentioned: TAL