Q3 26 EPS
$2.55
BEAT +798.63%
Est. $-0.37
Q3 26 Revenue
$329.1M
MISS 0.58%
Est. $331.0M
vs S&P Since Q3 26
+16.7%
BEATING MARKET
SCHL +32.8% vs S&P +16.2%
Market Reaction
Did SCHL Beat Earnings? Q3 2026 Results
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 dri… Read more 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. Analyst scrutiny has grown 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.
Key Takeaways
- • 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
SCHL Forward Guidance & Outlook
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
Q3 2026 vs Q3 2025, source: SEC Filings
SCHL Revenue by Segment
With YoY comparisons, source: SEC Filings
“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.”
— Peter Warwick, Q3 2026 Earnings Press Release
SCHL Earnings Trends
SCHL vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
SCHL EPS Trend
Earnings per share: estimate vs actual
SCHL Revenue Trend
Quarterly revenue: estimate vs actual
SCHL Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q3 26 BEAT | $-0.37 | $2.55 | +798.63% | $329.1M | -0.58% |
| Q2 26 BEAT | $2.07 | $2.57 | +24.15% | $551.1M | -1.01% |
| Q1 26 MISS | $-2.41 | $-2.83 | -17.43% | $225.6M | -5.57% |
| Q4 25 MISS FY | $0.85 | $0.59 | -30.59% | $508.3M | +2.77% |
| FY Full Year | $0.49 | $-0.07 | -114.29% | $1.63B | +0.85% |
| Q3 25 BEAT | $-0.78 | $-0.13 | +83.33% | $335.4M | -3.53% |