Scholastic (SCHL) has just reported Q3 2026 results with total revenue of US$329.1 million and basic EPS of US$2.61, backed by net income of US$62.5 million, setting a clear earnings season marker for investors watching its profitability. The company has seen quarterly revenue move between US$335.4 million in Q3 2025 and US$551.1 million in Q2 2026, while basic EPS has ranged from a loss of US$2.82 in Q1 2026 to a high of US$2.61 this quarter. This gives a concrete view of how the top and bottom line have shifted across recent periods. With trailing twelve month net margins reported at 3.9% and earnings higher than a year ago, this set of results puts profitability squarely in focus as you weigh the current earnings power against future potential.
See our full analysis for Scholastic.With the headline numbers on the table, the next step is to see how this earnings profile lines up with the most widely shared narratives around Scholastic, and where the data pushes back on those stories.
See what the community is saying about Scholastic
3.9% net margin and profit rebound on trailing basis
- Over the last 12 months, Scholastic earned US$62.7 million on US$1.6b of revenue, which works out to a 3.9% net profit margin compared with 1.2% a year earlier.
- Consensus narrative talks about margin growth from digital content and cost cuts, and the numbers partly back that up but also show some bumps:
- Trailing earnings growth of very large magnitude, 237.1% year over year, lines up with the bullish idea that recent changes are feeding through to the bottom line.
- At the same time, the 5 year earnings change of 3.8% decline per year shows that the business has not yet delivered a long stretch of steady profit growth, which keeps the bullish story grounded in only the most recent data.
Bulls point to the sharp earnings rebound and margin improvement as proof the story is turning in their favor, but the longer term record still tells a more cautious tale, and both sides are worth understanding before taking a strong view on the stock. 🐂 Scholastic Bull Case
Revenue growing 3.1% a year while Education and International face pressure
- Revenue growth over the last year averaged 3.1% per year, and analysts in this dataset also frame future revenue growth at around 3.1% a year, which sits below the 10.5% rate expected for the wider US market.
- Critics highlight that some core areas are under strain, and the figures point to where that concern is coming from:
- The risk section calls out a 12% year over year decline in the Education segment, which fits the bearish view that school and district spending is a weak spot even as group revenue inches higher.
- A modest decline flagged in International revenue and profits, alongside flat to slightly lower Entertainment profitability, suggests that not all of the 3.1% growth is coming from broad based strength, which bears use to question how durable that growth rate is.
Bears argue that slow overall top line growth plus pressure in Education and International could cap how far this rebound can go, so it pays to separate segment level softness from the healthier parts of the business. 🐻 Scholastic Bear Case
P/E of 15.1x, DCF fair value at US$22.95
- The shares trade on a trailing P/E of 15.1x at a price of US$37.28, which is below the US Media industry average of 18x and the broader US market on 18.2x, while the provided DCF fair value is US$22.95 per share and the dividend yield is 2.15%.
- Consensus narrative leans on margin expansion and capital returns to justify interest at current prices, and the valuation markers give that a mixed look:
- The combination of a lower P/E than peers and a 2.15% cash yield supports the idea that investors are not paying a premium multiple for the recent 3.9% margin and earnings rebound.
- However, analysts in this dataset also expect earnings to decline by about 21.6% per year over the next three years, and the DCF fair value of US$22.95 sits well below the current US$37.28 share price, which gives cautious investors a clear numerical reason to question how much of the improvement is already priced in.
Next Steps
To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Scholastic on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.
With both encouraging and cautious signals in the mix, it helps to look at the underlying data directly and decide where you stand. To see how the upside and downside stack up, take a closer look at the 3 key rewards and 1 important warning sign.
See What Else Is Out There
Scholastic combines a 3.9% net margin and modest 3.1% revenue growth with forecast earnings declines and pressure in key Education and International segments.
If you are concerned that sluggish growth and profit pressure could limit upside here, broaden your watchlist with the 51 high quality undervalued stocks to spot companies where expectations look more forgiving.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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