Why Scholastic Stock Climbed This Week

MrDecoder · 2026-03-21T23:39:21+00:00

Scholastic's shares increased 8.82% after better-than-expected Q3 earnings, with a loss of $0.15 per share versus an anticipated $0.37. Despite a revenue dip, cost-cutting measures and share repurchases aim to enhance shareholder value.

MrDecoder

2026-03-21 23:39:21

Abstract generation in progress

Shares of** Scholastic **(SCHL +8.82%) rose this past week after the children’s education and media leader’s quarterly results earned higher marks than investors expected.

According to data from S&P Global Market Intelligence, Scholastic’s stock price was up more than 10%.

Image source: Getty Images.

Q3 earnings beat

Scholastic’s revenue declined by 2% year over year to $329.1 million in its fiscal 2026 third quarter, which ended on Feb. 28.

The timing of publishing releases led to a 3% decrease in children’s book publishing and distribution sales to $197.6 million. Continued funding challenges for school districts drove a 2% decline in education revenue to $56.1 million. These shortfalls were partially offset by a 25% jump in entertainment sales to $16 million.

All told, Scholastic produced an adjusted loss per share of $0.15. That was significantly better than Wall Street expected. Analysts had forecast a per-share loss of $0.37.

Expand

NASDAQ: SCHL

Scholastic

Today’s Change

(8.82%) $3.02

Current Price

$37.26

Key Data Points

Market Cap

$948M

Day’s Range

$36.94 - $38.76

52wk Range

$15.77 - $38.94

Volume

99K

Avg Vol

449K

Gross Margin

52.32%

Dividend Yield

2.15%

Rising capital returns for shareowners

Scholastic has focused on reducing its cost structure to mitigate the effects of sluggish sales. The company raised over $400 million from the sale of its headquarters in New York City and its distribution center in Jefferson City, Missouri.

Scholastic used the proceeds to pay down debt and bolster its cash reserves, while also buying back more than $147 million of its shares. Its board of directors also approved a $200 million tender offer as part of a new $300 million share repurchase program.

These repurchases, along with Scholastic’s dividend payments, will be supported by a projected $430 million in full-year free cash flow.

“We remain focused on maximizing shareholder value, disciplined execution, and accelerating profitability, as we position the company for growth in fiscal 2027 and fulfill our mission to help children read, learn, and thrive,” CEO Peter Warwick said.

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

2 Likes