Scholastic Reports Revenue Increase in Q2 Fiscal 2026, Net Income Rises

Scholastic Corporation reported a slight increase in revenue for the second quarter of fiscal 2026, with total revenues reaching $551.1 million, up from $544.6 million in the same quarter of the previous year. The company’s net income for the quarter was $55.9 million, translating to earnings per diluted share of $2.17, compared to $48.8 million and $1.71 per share in the prior year. The growth in revenue was attributed to the successful release of new titles in popular series such as "Dog Man," "Hunger Games," and "Harry Potter," as well as a strong performance in the School Reading Events segment, which saw increased fair counts and revenue per fair.

In contrast, the first half of the fiscal year showed a decline in total revenues, which fell to $776.7 million from $781.8 million year-over-year. The Children's Book Publishing and Distribution segment experienced a revenue increase of $17.9 million, driven by higher sales from school reading events and trade channels. However, the Education Solutions segment faced a significant revenue drop of $24.6 million, primarily due to delayed school funding impacting sales of supplemental programs. The Entertainment segment also reported a decrease in revenues, reflecting lower production and distribution income.

Operationally, Scholastic's cost of goods sold for the quarter was $225.6 million, representing 40.9% of revenues, a decrease from 42.0% in the prior year. This improvement was attributed to better inventory management and reduced freight costs, although increased tariffs were noted as a potential future cost pressure. Selling, general, and administrative expenses decreased to $217.5 million from $224.9 million, largely due to lower employee-related costs and general expenses following previous reorganization efforts.

Looking ahead, Scholastic anticipates continued positive trends in its book fair operations and expects to benefit from upcoming trade publishing releases. The company remains focused on enhancing profitability and shareholder value, with plans to leverage its successful franchises and new product launches. The outlook for the second half of fiscal 2026 includes expectations for improved performance in the Education Solutions segment as funding conditions stabilize.