The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Scholastic (NASDAQ: SCHL) and the rest of the media stocks fared in Q3.

The advent of the internet changed how shows, films, music, and overall information flow. As a result, many media companies now face secular headwinds as attention shifts online. Some have made concerted efforts to adapt by introducing digital subscriptions, podcasts, and streaming platforms. Time will tell if their strategies succeed and which companies will emerge as the long-term winners.

The 7 media stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 1.4%.

While some media stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.3% since the latest earnings results.

Weakest Q3: Scholastic (NASDAQ: SCHL)

Creator of the legendary Scholastic Book Fair, Scholastic (NASDAQ: SCHL) is an international company specializing in children's publishing, education, and media services.

Scholastic reported revenues of $225.6 million, down 4.9% year on year. This print fell short of analysts’ expectations by 5.6%. Overall, it was a slower quarter for the company with a significant miss of analysts’ revenue and EPS estimates.

Peter Warwick, President and Chief Executive Officer, said, "Scholastic made steady progress in the first quarter of fiscal 2026, advancing strategic initiatives across all segments. The seasonally quiet summer period resulted in an operating loss consistent with expectations.

Scholastic delivered the weakest performance against analyst estimates of the whole group. Interestingly, the stock is up 4.6% since reporting and currently trades at $28.24.

Read our full report on Scholastic here, it’s free for active Edge members.

Best Q3: fuboTV (NYSE: FUBO)

Originally launched as a soccer streaming platform, fuboTV (NYSE: FUBO) is a video streaming service specializing in live sports, news, and entertainment content.

fuboTV reported revenues of $377.2 million, down 2.3% year on year, outperforming analysts’ expectations by 4.9%. The business had a stunning quarter with a beat of analysts’ EPS and EBITDA estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 23.3% since reporting. It currently trades at $2.90.

Is now the time to buy fuboTV? Access our full analysis of the earnings results here, it’s free for active Edge members.

Warner Bros. Discovery (NASDAQ: WBD)

Formed from the merger of WarnerMedia and Discovery, Warner Bros. Discovery (NASDAQ: WBD) is a multinational media and entertainment company, offering television networks, streaming services, and film and television production.

Warner Bros. Discovery reported revenues of $9.05 billion, down 6% year on year, falling short of analysts’ expectations by 1.9%. It was a mixed quarter as it posted an impressive beat of analysts’ adjusted operating income estimates but a miss of analysts’ Content revenue estimates.

Warner Bros. Discovery delivered the slowest revenue growth in the group. Interestingly, the stock is up 7.4% since the results and currently trades at $24.61.

Read our full analysis of Warner Bros. Discovery’s results here.

Warner Music Group (NASDAQ: WMG)

Launching the careers of legendary artists like Frank Sinatra, Warner Music Group (NASDAQ: WMG) is a music company managing a diverse portfolio of artists, recordings, and music publishing services worldwide.

Warner Music Group reported revenues of $1.87 billion, up 14.6% year on year. This print surpassed analysts’ expectations by 10.8%. Overall, it was an exceptional quarter as it also put up a beat of analysts’ EPS estimates and a solid beat of analysts’ revenue estimates.

Warner Music Group delivered the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is down 8.1% since reporting and currently trades at $28.04.

Read our full, actionable report on Warner Music Group here, it’s free for active Edge members.

News Corp (NASDAQ: NWSA)

Established in 2013 after a restructuring, News Corp (NASDAQ: NWSA) is a multinational conglomerate known for its news publishing, broadcasting, digital media, and book publishing.

News Corp reported revenues of $2.14 billion, up 2.3% year on year. This result topped analysts’ expectations by 2%. It was a strong quarter as it also recorded a beat of analysts’ EPS estimates and a decent beat of analysts’ adjusted operating income estimates.

The stock is up 2.2% since reporting and currently trades at $25.63.

Read our full, actionable report on News Corp here, it’s free for active Edge members.

Market Update

In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.

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