What Happened?

Shares of educational publishing and media company Scholastic (NASDAQ: SCHL) fell 10.5% in the pre-market session after the company reported a wider adjusted operating loss and a 3.9% decline in revenue for the third quarter of 2026, missing Wall Street's expectations. 

According to a company press release, Scholastic reported revenue of $216.8 million for the third quarter of 2026, down 3.9% year on year due to declines in education and children's book publishing and distribution, while its adjusted operating loss widened to $88.7 million. The results trailed Wall Street's expectations, as revenue missed consensus estimates of $224.7 million and the company's adjusted loss of $3.63 per share was wider than the $3.42 per share loss anticipated by analysts. The release also said Scholastic affirmed its full-year guidance projecting 2% to 4% revenue growth and returned approximately $29.6 million to shareholders through share repurchases and dividends.

After the initial drop, the shares shed some of the losses and rose to $33.35, down 4.2% from the previous close.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Scholastic? Access our full analysis report here, it’s free.

What Is The Market Telling Us

Scholastic’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. Moves this big are rare for Scholastic and indicate this news significantly impacted the market’s perception of the business.

The biggest move we wrote about over the last year was 7 months ago when the stock gained 5% on the news that the Supreme Court struck down sweeping Trump tariffs, bringing potential relief to companies impacted by international trade disputes. 

Scholastic is up 11.3% since the beginning of the year, but at $33.35 per share, it is still trading 29.5% below its 52-week high of $47.34 from June 2026. Despite the year-to-date gain, investors who bought $1,000 worth of Scholastic’s shares 5 years ago would now be looking at only $966.47.

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