Scholastic (SCHL) Q3 2026 Earnings
How Did SCHL Stock React to Q3 2026 Earnings?
S&P 500 over the same 30 days: +9.66%.
Did SCHL Beat Earnings? Q3 2026 Results
Yes. Scholastic reported Q3 2026 earnings of $2.55 a share on Mar 19, 2026, beating the $-0.37 consensus estimate by 798.6%. Revenue was $329.1M against a $331.0M estimate.
Scholastic Corporation delivered a headline-grabbing fiscal Q3 2026, with reported diluted EPS of $2.55 clearing the consensus estimate of negative $0.37 by 798.63%, though the real story lies beneath that figure. The outsized earnings result was driven almost entirely by a $119.80 million pretax gain on sale-leaseback transactions for the company's New York City and Missouri facilities, which generated over $400.00 million in net proceeds and transformed the balance sheet from net debt of $189.40 million a year ago to net cash of $90.60 million. Strip out the one-time items and the underlying picture was softer, with adjusted diluted EPS coming in at a loss of $0.15 and adjusted EBITDA falling to zero from $6.00 million. Revenue of $329.10 million fell 1.9% year-over-year and narrowly missed the $331.03 million consensus by 0.58%, reflecting weakness in Trade following tough comparisons against a major Dog Man release. <a href="https://247wallst.com/investing/2026/03/09/grocery-outlet-and-scholastic-face-new-analyst-scrutiny-on-consumer-trends/">Analyst scrutiny has grown</a> around the core business trends, with multiple firms moving to hold-equivalent ratings. Management reaffirmed full-year adjusted EBITDA guidance of $146.00 million to $156.00 million and authorized a new $300.00 million share repurchase program, including a $200.00 million Dutch auction tender offer at $36.00 to $40.00 per share.
- Higher revenue per fair drove Book Fairs growth of 2%
- Consolidated Trade revenues down 10% due to tough comparison against prior-year Dog Man release
- Entertainment revenues up 25% on higher episodic deliveries and production services
- Education operating loss improved $1.7 million due to improved cost structure
- Sale-leaseback transactions generated over $400 million in net proceeds
- Gain on sale-leaseback transactions of $119.8 million boosted reported earnings
“Last quarter Scholastic made significant progress in its ongoing plan to enhance shareholder value, including optimizing our balance sheet with over $400 million in net proceeds from two sale-leaseback transactions and advancing our strategy to drive long-term growth and margin expansion. After returning over $147 million to shareholders through open-market share repurchases since December, our Board has additionally authorized a $200 million modified Dutch auction tender offer anticipated to be launched in the coming days.”
Scholastic CEO, on the earnings call
What Was Scholastic's Outlook in Q3 2026?
The company reaffirmed its full-year fiscal 2026 Adjusted EBITDA outlook of $146 million to $156 million, including the $14 million partial-year impact from sale-leaseback transactions. 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 to be approximately flat with the prior year, reflecting year-to-date softness in Education and strong comps in Trade a year ago. The company has established a long-term net leverage target of 2.0 to 2.5 times Adjusted EBITDA.
SCHL YoY Financials
| Metric | Q3 2026 | Q3 2025 | Year over year |
|---|---|---|---|
| Revenue | $329.1M | $335.4M | −1.9% |
| Gross Profit | $178.8M | $163.9M | +9.1% |
| Operating Income | −$26.9M | −$31.8M | −15.5% |
| Net Income | $62.5M | $3.2M | +1,836.1% |
SCHL Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.