Scholastic Corp

Scholastic Corporation delivered a disappointing start to fiscal 2026, missing on both the top and bottom lines as its seasonally soft first quarter was further pressured by a sharp pullback in school spending. The children's publishing and education giant reported a loss of $2.83 per share for the quarter ended August 31, 2025, falling short of the consensus estimate of $2.41 by 17.43%, while revenue slid 4.9% year-over-year to $225.60 million, missing analyst expectations of $238.91 million by 5.57%. The primary culprit was a 28% collapse in Education Solutions revenue, as volatile federal and state funding environments prompted schools to delay or reduce purchases of supplemental curriculum materials. Offsetting some of the pain, Children's Book Publishing and Distribution posted a 4% revenue gain, with Book Fairs surging 18% to $34.10 million on strong host engagement. Despite the headline misses, Scholastic affirmed its fiscal 2026 guidance, pointing to fall book fair bookings ahead of prior year levels and the anticipated November release of Dog Man: Big Jim Believes as catalysts for improvement. The company also flagged a potential sale-leaseback of key real estate assets as a source of additional liquidity, even as scrutiny of executive compensation amid multi-year earnings declines adds an uncomfortable backdrop heading into the rest of the year.