Scholastic Corporation SCHL and John Wiley & Sons, Inc. WLY are well-established leaders in the global publishing space, each leveraging unique strengths to drive growth in a rapidly evolving knowledge economy. While Scholastic is capitalizing on its deep-rooted school ecosystem and beloved children’s content, Wiley is accelerating momentum through research leadership and expanding AI-driven opportunities.
Both companies are executing strategic initiatives to enhance shareholder value, improve operational efficiency and unlock growth avenues. The key question for investors is which stock presents the more compelling upside in the current landscape.
The Case for SCHL
Scholastic is progressing through a pivotal transformation in its third quarter of fiscal 2026, aimed at simplifying its business and strengthening execution. The company is refining its operating structure, reducing complexity and aligning its product portfolio more closely with market demand. This strategic repositioning is designed to create a more agile organization capable of delivering consistent performance. By focusing on core strengths, Scholastic is enhancing its ability to drive long-term value.
A defining element of this transformation has been its capital allocation strategy. Scholastic unlocked more than $400 million in net proceeds through sale-leaseback transactions, significantly improving liquidity. This has enabled the company to accelerate shareholder returns, including a $300-million share repurchase authorization. It has also established a long-term net leverage target of 2-2.5X adjusted EBITDA, reflecting a disciplined and balanced financial framework.
Its school-based ecosystem remains a powerful competitive advantage, particularly through Book Fairs. The business continues to benefit from higher revenue per fair, lower cancellations and increased adoption of e-wallet, which simplifies transactions and boosts participation. Management highlighted strong momentum heading into the fourth quarter, with Book Fairs expected to be a key driver of growth.
Digital expansion is becoming an increasingly important growth lever for the company. Scholastic’s YouTube channels generated more than 85 million views in the quarter, up more than 200% year over year, with audiences spending above 21 million hours engaging with content. The company has also expanded its digital presence with curated hubs like Scholastic STEAM and Scholastic International. This growing digital ecosystem is helping extend its reach to a broader global audience.
At the same time, Scholastic is scaling its presence in streaming and digital media. Its Scholastic TV platform now offers more than 800 episodes and has generated nearly 100 million minutes watched since launch. The company expects continued stabilization in fiscal 2026, with a return to growth in fiscal 2027, supported by improvements in its Education segment and ongoing strategic initiatives. Supported by strong franchises and improved operational discipline, Scholastic is positioning itself for sustained growth.
The Case for WLY
Wiley is strengthening its position as a leading knowledge and data-driven enterprise in the third quarter of fiscal 2026, supported by its core research publishing business. The company continues to benefit from rising global research activity, with submissions up 26% and research output increasing 11%, reinforcing strong demand. This momentum highlights Wiley’s scale and leadership in the global research ecosystem.
A key strength of Wiley’s model is its recurring revenue base, which provides stability and long-term visibility. Approximately 70% of its revenues are derived from recurring models, supported by multiyear agreements and customer retention above 99%. This structure creates a durable and predictable revenue stream, reinforcing its position as a mission-critical partner for institutions and researchers.
The company is also rapidly expanding its presence in AI and data services. Wiley has already generated $42 million in AI-related revenue year-to-date and expects to deliver $45-$50 million in AI revenues in fiscal 2026, up from $40 million in fiscal 2025 and $23 million in fiscal 2024. Its ecosystem continues to expand, with 36 publishing partners supporting its content licensing network.
Innovation is further reflected in its AI platforms and digital infrastructure. Wiley’s research gateway has gained early traction, with more than 9,000 researchers registered within months of launch, embedding trusted content directly into AI workflows. These capabilities are enhancing productivity and positioning Wiley at the center of next-generation research and knowledge delivery.
Looking ahead, Wiley expects research growth to continue at the top end of the market, supported by strong publishing output, renewals and market share gains. AI momentum is also expected to accelerate through multiyear partnerships and increasing enterprise adoption, with management anticipating another strong year of AI growth in fiscal 2027. With expanding data capabilities and scalable revenue streams, Wiley is well-positioned for sustained long-term growth.
How Does the Zacks Consensus Estimate Compare for SCHL & WLY?
The Zacks Consensus Estimate for Scholastic’s current fiscal-year sales and EPS implies a decline of 0.1% and growth of 291.7%, respectively, from the year-ago period’s actuals. For the next fiscal year, the consensus estimate indicates a 4% rise in sales and 48.9% growth in earnings. The consensus estimate for EPS for the current fiscal year has increased 98 cents to $1.88 over the past 60 days, while for the next fiscal year, it has improved by $1.06 to $2.80.
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The Zacks Consensus Estimate for Wiley’s current fiscal-year sales and EPS implies growth of 0.1% and 15.4%, respectively, from the year-ago period’s actuals. For the next fiscal year, the consensus estimate indicates a 2.3% rise in sales and 13.1% growth in earnings. The consensus estimate for EPS for the current fiscal year has increased 20 cents to $4.20 over the past 60 days, while for the next fiscal year, it has improved by 35 cents to $4.75.
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Stock Performances of SCHL & WLY
Over the past six months, shares of Scholastic have jumped 47.2%, whereas Wiley has gained 13.2%.
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Dive Into Stock Valuations of SCHL & WLY
Scholastic is trading at a forward price-to-earnings (P/E) multiple of 15.54, above its median of 13.80 in the last three years. Wiley’s forward 12-month P/E multiple sits at 8.72, below its median of 13.15 in the last three years.
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SCHL or WLY: Which Is the Better Bet Now?
Scholastic emerges as the stronger investment candidate, supported by its ongoing transformation, disciplined capital allocation and improving business momentum, with asset monetization enhancing financial flexibility and continued traction in Book Fairs and digital platforms supporting growth, while favorable earnings estimate revisions and stronger stock performance reinforce its near-term upside potential. While Wiley benefits from a stable recurring revenue base and expanding AI-driven opportunities, its growth trajectory appears more gradual, making Scholastic the more compelling choice for investors seeking upside.
Scholastic currently sports a Zacks Rank #1 (Strong Buy), whereas Wiley has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
