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Publishing — industry outlook

  • Period: 2026-09-24 to 2026-10-15
  • Events: 2
  • Generated: 2026-10-15T06:30:00.004Z

Fiscal 2027 Guidance and Financial Trajectory

SCHOLASTIC CORP (SCHL) affirmed FY2027 revenue growth of approximately 2% to 4% year-over-year, with growth expected to commence in Q2 and continue through the year. Adjusted EBITDA is targeted at $135 million to $145 million (representing growth vs. FY2026 on a comparable basis including sale-leaseback impacts), while Free Cash Flow is projected at $35 million to $40 million. Operating income is expected to be modestly lower compared to the prior year. The company authorized $157 million in remaining share repurchases as of August 31, 2026, and anticipates continuing purchases as conditions allow.

Content Synergies and Franchise Momentum

SCHOLASTIC CORP (SCHL) highlighted a robust FY2027 publishing slate driven by cross-channel franchise synergies, including the fall 2026 launch of the Harry Potter HBO series, 30th U.S. anniversary of the franchise in 2028, and tie-ins for The Hunger Games film (e.g., Sunrise on the Reaping) and new Dogman titles (November 2026 and 2027–2028 plans). The company expressed confidence in "sustainable and profitable growth" supported by scale and brand. In the entertainment segment, SCHOLASTIC CORP (SCHL) expects accelerating growth and improved profitability in FY2027 driven by a strong greenlit project pipeline, increased production activity, and digital platform expansion, noting Clifford YouTube views were up 52% YoY with a new animated series premiering on PBS Kids in 2027. Additionally, SCHOLASTIC CORP (SCHL) announced a publishing and distribution partnership with Mattel in India for Barbie, Hot Wheels, and Masters of the Universe brands.

Market Headwinds: Education Funding and International Costs

SCHOLASTIC CORP (SCHL) identified ongoing pressure on U.S. school/district spending in the Education segment due to higher staffing/fixed costs, unfunded mandates, and the conclusion of ESSER funding in March. While the Education segment targets improved full-year performance with revenue trends expected to improve in the second half due to subscription recognition timing and go-to-market transformation execution, the International segment forecasts full-year revenue growth that is offset by operating income declines. SCHOLASTIC CORP (SCHL) projects operating income in international markets to be modestly lower due to inflation and higher fuel/freight costs, citing geopolitical factors and war-related logistics impacts. SCHOLASTIC CORP (SCHL) also noted that corporate overhead management continues with targeted investments in FY2027 growth priorities, and sale-leaseback transactions have eliminated rental income while adding lease expense.

Segment Performance and Strategic Positioning

SCHOLASTIC CORP (SCHL) reported strong early performance indicators for the Children's Book Publishing (Book Fairs) segment, with bookings and fair counts ahead of the prior year; the company plans to expand its total addressable market by reaching new school communities (Christian schools, extended formats). SCHOLASTIC CORP (SCHL) expects Children's Book Publishing (Trade) to see stronger Q2 and full-year 2027 revenues supported by the aforementioned franchise schedule. SCHOLASTIC CORP (SCHL) is focusing on program simplification for Book Clubs to better engage teachers and families, and has implemented a cost structure repositioning to better align with market conditions in the Education segment.