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I lower my rating for Gaotu Techedu Inc. from 'Buy' to 'Hold' after analyzing its results and outlook. GOTU's 1Q2026 performance was mixed as evidenced by the sales beat and a below-consensus bottom-line. The company's Q2 revenue guidance implies growth acceleration, but falls short of the sell-side's estimate; a desire to remain profitable will cap near-term topline expansion, justifying a Neutral stance.

Gaotu Techedu Inc. (GOTU) Q1 2026 Earnings Call Transcript

Gaotu Techedu NYSE: GOTU reported first-quarter 2026 revenue growth and a return to profitability on a non-GAAP basis, as management emphasized disciplined spending, artificial intelligence integration and expansion of offline learning services during the company's earnings call.

Gaotu Techedu Announces First Quarter 2026 Unaudited Financial Results PR Newswire BEIJING, June 2, 2026

BEIJING, June 2, 2026 /PRNewswire/ -- Gaotu Techedu Inc. (NYSE: GOTU) ("Gaotu" or the "Company"), a leading technology-driven education company in China focused on enabling lifelong learning through AI-powered solutions, today announced its unaudited financial results for the first quarter ended March 31, 2026. First Quarter 2026 Highlights [1] Net revenues were RMB1,689.5 million, increased by 13.2% from RMB1,493.0…