Scholastic Corporation (SCHL) saw its stock price plummet 5.47% in intraday trading following the release of its fiscal fourth quarter and full-year 2025 financial results. Despite reporting a 2% increase in annual revenue to $1.625 billion, investors appear to be reacting negatively to the company's significant drop in earnings per share (EPS).

The children's publishing and media company met its original guidance for Adjusted EBITDA, which came in at $91.2 million. However, the 52% decline in EPS overshadowed this achievement. Scholastic's adjusted operating income also decreased by $8.9 million, primarily due to lower sales in its Education Solutions segment. These mixed results across different business areas seem to have sparked concerns among investors.

Looking ahead, Scholastic is targeting robust profit growth for fiscal 2026, with a focus on continued cost management. The company has provided an outlook for fiscal 2026 Adjusted EBITDA ranging from $160 million to $170 million. Despite this positive forward guidance, the market's immediate reaction suggests that investors are more focused on the current earnings decline rather than future projections. As the trading session progresses, it remains to be seen whether Scholastic can regain investor confidence based on its growth strategies and cost management initiatives.