Scholastic Corp. (NASDAQ:SCHL) Stock Falls 10% After Q1 Revenue and Earnings Miss Estimates

Scholastic Corp. (NASDAQ:SCHL) reported its fiscal first quarter 2026 results, revealing a mixed performance relative to analyst expectations. The children's publishing and education specialist posted both revenue and earnings per share figures that fell short of consensus estimates, triggering a sharp negative reaction in after-hours trading.

Earnings and Revenue Performance

The company reported revenue of $225.6 million for the quarter ended August 31, 2025, falling below the analyst consensus estimate of $243.7 million. Similarly, the non-GAAP earnings per share came in at -$2.52, slightly worse than the estimated -$2.49. While the earnings miss was marginal, the revenue shortfall appears to have concerned investors more significantly.

Key financial metrics versus estimates:

• Reported Revenue: $225.6M vs. Estimated $243.7M
• Reported EPS (non-GAAP): -$2.52 vs. Estimated -$2.49

Market Reaction

The market response was immediately negative, with shares declining approximately 10.3% in after-hours trading following the earnings release. This reaction suggests investors were disappointed with both the top-line performance and the earnings miss, particularly given that the company typically operates at a loss during this seasonally slow quarter when schools are not in session.

Recent performance context:

• Last week: +3.5%
• Last two weeks: +8.6%
• Last month: +7.9%

Company Outlook and Guidance

Scholastic affirmed its full-year fiscal 2026 guidance, specifically highlighting improved adjusted EBITDA expectations. This affirmation suggests management maintains confidence in their full-year performance despite the first quarter shortfall. The company's guidance appears generally aligned with analyst expectations for the full year, which project revenue of approximately $1.69 billion and earnings of $1.43 per share.

Forward Estimates

Looking ahead to the next quarter, analysts project Q2 revenue of approximately $563.4 million with earnings of $2.09 per share. These estimates will provide an important benchmark for assessing whether the first quarter miss was an anomaly or part of a broader trend.

Press Release Summary

The earnings release emphasized the seasonal nature of Scholastic's first quarter, which typically shows an operating loss due to the summer break period when school-related business declines. Management highlighted their confidence in the full-year outlook by reaffirming fiscal 2026 guidance, particularly noting expected improvements in adjusted EBITDA performance.

For more detailed earnings information and future estimates, readers can view additional data here.

Disclaimer: This article provides financial information for educational purposes only and should not be considered investment advice. Readers should conduct their own research and consult with a qualified financial advisor before making any investment decisions.