Scholastic shares rise 10.54% after-hours after reporting better-than-expected earnings and announcing $200M buyback.

Scholastic surged 10.54% in after-hours trading following a third-quarter earnings report that exceeded expectations and a $200 million share buyback announcement. Despite a 2% revenue decline to $329.1 million and a $26.9 million operating loss, the company reported a better-than-anticipated 15-cent-per-share loss (versus 36-cent estimate) and outlined a modified Dutch auction tender offer to repurchase shares between $36–$40. The buyback, funded by proceeds from selling headquarters and distribution buildings, signaled confidence in the stock’s value, while management highlighted stabilization in the education segment and new entertainment projects. B. Riley also raised its price target to $40 from $37, reinforcing investor optimism. The positive reaction contrasted with softness in trade and international segments but was driven by the buyback’s perceived undervaluation and improved fiscal 2026 outlook.