Shares of New Oriental Education & Technology Group Inc. (EDU) surged 5.09% in pre-market trading on Wednesday following the release of the company's fiscal third quarter 2025 financial results, which exceeded market expectations.

For the quarter ended February 28, 2025, New Oriental reported net revenues of $1.18 billion, representing a 21.2% increase year-over-year when excluding revenues from its East Buy private label products and livestreaming business. The company's operating income rose 9.8% to $124.5 million, while net income attributable to New Oriental increased slightly by 0.1% to $87.3 million.

Investors were particularly encouraged by New Oriental's strong performance in its core educational services. The overseas test preparation and overseas study consulting businesses grew by 7.1% and 21.4% year-over-year, respectively. Additionally, the domestic test preparation business targeting adults and university students saw a robust 17.0% growth compared to the same period last year. The company's new educational initiatives, including non-academic tutoring courses and intelligent learning systems, also showed impressive momentum with a 34.5% revenue increase.

Looking ahead, New Oriental provided an optimistic outlook for the fourth quarter of fiscal year 2025, projecting net revenues between $1.01 billion and $1.04 billion, representing a year-over-year increase of 10% to 13% in U.S. dollar terms. The company's strategic focus on sustainable long-term development, product quality, and operational efficiency appears to be resonating well with investors, driving the stock's pre-market rally.