Goldman Sachs: China Education January Tracking — AI Tablet GMV Recovery and Doubao Integration
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Goldman Sachs has published its January 2026 tracking report for the Chinese education sector, covering AI learning applications, smart tablets, mobile engagement, tutoring licenses, and international study trends. The data reveals that ByteDance's Doubao Study application achieved a daily active user count of 1.9 million, representing a 374% year-over-year increase. Its AI functionalities have been integrated into the main Doubao app to capture a broader audience beyond K-12 students and parents.
In the hardware segment, combined gross merchandise value for the top six learning tablet brands grew 9% year-over-year. TAL Education led this recovery, with its tablet GMV surging 39% to RMB 529 million. The launch of the new X5 model, priced at a subsidized RMB 3,800, helped stabilize average selling prices, which rose 13% sequentially to RMB 3,400. Meanwhile, monthly active users for TAL's Xueersi online and premium tutoring apps grew by 33% and 27%, respectively. Internationally, Gauth sustained strong momentum, reaching 3 million daily active users and achieving trailing twelve-month billings of US$11.8 million.
Goldman Sachs notes that the year-over-year decline in student visas to Canada and Australia has narrowed to -18%, with Canada showing positive growth recently. East Buy's Douyin GMV reached RMB 956 million, up 55% year-over-year. Based on these findings, Goldman Sachs maintains a Buy rating on TAL, Neutral ratings on New Oriental and Gaotu Techedu, and a Sell rating on East Buy.