Scholastic (NASDAQ:SCHL) Reports Sales Below Analyst Estimates In Q2 CY2026 Earnings, Stock Drops
Scholastic (NASDAQ: SCHL) reported Q2 CY2026 revenue of $476.1 million, down 6.3% year on year and below analyst estimates. Non-GAAP EPS was $2.19, about 1.4% above consensus. The company said adjusted EBITDA rose in line with guidance, but full-year EBITDA guidance missed. Shares fell 6.6% to $43.37 after the release.
How this was made
The 30-second read
Why it matters
The key tradable issue is the combination of a Q2 revenue decline that missed estimates and a full-year EBITDA guidance miss, despite non-GAAP EPS being slightly above consensus and adjusted EBITDA meeting guidance.
Market read
Investors are likely repricing near-term revenue expectations and the credibility of full-year EBITDA guidance, which can affect valuation multiples for the stock.
What to watch
The article notes ongoing multi-year transformation and stable operating margin; if investors focus on cost discipline and balance-sheet progress, the selloff could be partially mean-reverting.
Background
Scholastic is an educational publishing and media company, including the Scholastic Book Fair, and is in a multi-year transformation aimed at improving governance, organization, strategy, and balance sheet.
Ticker impact
Scholastic reported Q2 CY2026 revenue of $476.1M, down 6.3% YoY, missing Wall Street estimates and sending the stock down 6.6% to $43.37.
Near-term bias remains negative until investors get clarity on revenue trajectory and full-year EBITDA guidance.
The article provides concrete Q2 revenue and margin datapoints plus a stated full-year EBITDA guidance miss, which typically drives expectation resets even if EPS/EBITDA beat on a narrow basis.
Market effects
Signals continued demand softness in children’s education publishing, with investors likely scrutinizing revenue durability versus cost/margin stability.
No specific regional impact described beyond US-listed equity reaction.
Limited, as the article focuses on company-specific quarterly results and guidance.
Counterpoint
Non-GAAP EPS beat and adjusted EBITDA rose in line with guidance, suggesting the market may be over-penalizing a single-quarter revenue softness.
Key entities
- companyScholastic
Reported Q2 CY2026 revenue of $476.1M (down 6.3% YoY) and non-GAAP EPS of $2.19, with the stock down 6.6% after results.
- executivePeter Warwick
CEO who said fiscal 2026 showed earnings power and that adjusted EBITDA rose in line with guidance.
