Scholastic (SCHL) stock fell on Friday following the release of the publishing company’s Fiscal Q1 2026 earnings report. This report began with adjusted earnings per share of -$2.52, which was worse than Wall Street’s estimate of -$2.44. It was also a wider loss than the -$2.13 reported in Fiscal Q1 2025. Investors will note that Scholastic typically reports a loss in Q1 due to schools not being in session.
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Scholastic reported revenue of $225.6 million in Fiscal Q1 2026, which was another miss compared to analysts’ estimate of $238.91 million. Revenue declined 5% year-over-year from $237.2 million. The company mainly attributed this drop to “lower Education Solutions sales in a volatile federal and state funding environment.”
Scholastic stock was down 10.68% in pre-market trading on Friday, following a 1.21% rally yesterday. The shares have rallied 32.92% year-to-date, but were still down 12.29% over the past 12 months.
Scholastic Guidance
Peter Warwick, President and CEO of Scholastic, updated investors on the company’s Fiscal 2026 guidance. He said, “With a sharpened strategy, valuable IP, and a focus on operational discipline, we are affirming our fiscal 2026 guidance, confident in our ability to deliver long-term growth and impact.”
One major event that investors will want to keep an eye on is Scholastic’s planned real estate sale. The company wants to sell some of its offices and retail locations in New York City and its distribution centers in Jefferson City, Missouri. It expects to complete these sales this fall, which should provide it with funds for debt reduction and share repurchases.
Is Scholastic Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Scholastic is Moderate Buy, based on a single Buy rating over the past three months. With that comes an SCHL stock price target of $37, representing a potential 34.35% upside for the shares. These ratings and price targets will likely change as analysts update their coverage after today’s earnings report.
