Scholastic Corp
Q2 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.85%.
Did SCHL Beat Earnings? Q2 2026 Results
Scholastic Corporation delivered a strong earnings beat in fiscal Q2 2026, with adjusted diluted EPS of $2.57 clearing the $2.07 consensus estimate by 24.15%, even as revenue of $551.10 million edged just 1.01% below expectations while still rising 1.2% year over year. The standout driver was the Children's Book Publishing and Distribution segment, where school book fairs posted a 5% revenue increase to $242.00 million on higher fair counts and spending per fair, and trade publishing climbed 7% to $110.40 million on the strength of the 14th Dog Man title alongside special editions of the Hunger Games and Harry Potter franchises. Partially offsetting those gains, Education Solutions remained a headwind, with revenue declining 13% to $62.20 million amid tight federal and state funding conditions. A transformative sale-leaseback of major real estate assets closed shortly after the quarter, generating roughly $401.00 million in net proceeds and prompting the Board to authorize a $150.00 million share repurchase program. Looking ahead, Scholastic affirmed full-year adjusted EBITDA guidance of $146.00 million to $156.00 million, though some analysts trimmed price targets on concerns about the broader growth outlook.
- Higher Book Fairs fair count and revenue per fair drove 5% growth
- Strong Trade publishing results led by Dog Man: Big Jim Believes (14th title in the series)
- Special edition releases for Hunger Games and Harry Potter franchises
- Reduction in discretionary overhead expenses
- Operational efficiencies in the International segment
“Scholastic delivered strong performance in the second quarter and successfully executed on key strategic and financial initiatives. Book Fairs delivered a successful back-to-school season, with higher fair count and increased revenue per fair. Trade publishing results were similarly strong, led by Dav Pilkey's best-selling Dog Man: Big Jim Believes, the 14th title in the global phenomenon, alongside new special edition releases for The Hunger Games® and Harry Potter® franchises.”
Scholastic CEO, on the earnings call
Forward Guidance & Outlook
Scholastic affirmed its full-year fiscal 2026 outlook, adjusted for the sale-leaseback transactions. Full-year Adjusted EBITDA is expected to be $146 million to $156 million (net of a $14 million partial-year sale-leaseback impact). Fiscal 2026 free cash flow is forecasted to exceed $430 million, reflecting proceeds from the sale of real estate assets. Full-year revenue is expected in line with or modestly above the prior year, reflecting solid growth within Children's Book Publishing and Distribution, offset by lower year-to-date Education Solutions sales. The full-year pro forma impact of the sale-leaseback on Adjusted EBITDA and operating income is estimated at $32 million and $17 million, respectively. The Company expects the sale-leaseback transactions to benefit fiscal 2026 full-year free cash flow by approximately $400 million.
SCHL YoY Financials
SCHL Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.