Wrapping up Q2 earnings, we look at the numbers and key takeaways for the consumer discretionary stocks, including Scholastic (NASDAQ: SCHL) and its peers.

This sector includes everything from cable TV services to hotel stays to gym memberships. While diverse, the way people buy and experience these products is being upended by the internet and digitization. Consumer discretionary companies are working to adapt to secular trends such as streaming video, online marketplaces for lodging accommodations, and connected fitness. That discretionary purchases are, by definition, something consumers can give up makes it even more imperative for companies in the space to adapt.

The 55 consumer discretionary stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 1.5% while next quarter’s revenue guidance was 2.3% below.

While some consumer discretionary stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.2% since the latest earnings results.

Scholastic (NASDAQ: SCHL)

Creator of the legendary Scholastic Book Fair, Scholastic (NASDAQ: SCHL) is an international company specializing in children's publishing, education, and media services.

Scholastic reported revenues of $476.1 million, down 6.3% year on year. This print fell short of analysts’ expectations by 7.9%. Overall, it was a softer quarter for the company with full-year EBITDA guidance missing analysts’ expectations significantly.

Peter Warwick, President and Chief Executive Officer, said, "Fiscal 2026 demonstrated the earnings power of a more focused Scholastic, as the Company made substantial progress in a multi-year transformation of its governance, organization, strategy and balance sheet. Adjusted EBITDA rose, in line with guidance, positioning the Company for growth in fiscal 2027."

Scholastic delivered the weakest performance against analyst estimates among its peers. The market seems disappointed with the results as the stock is down 12.5% since reporting and currently trades at $40.65.

Read our full report on Scholastic here, it’s free.

Best Q2: AMC Entertainment (NYSE: AMC)

With a profile that was raised due to meme stock mania beginning in 2021, AMC Entertainment (NYSE: AMC) operates movie theaters primarily in the US and Europe.

AMC Entertainment reported revenues of $1.60 billion, up 14.2% year on year, outperforming analysts’ expectations by 8.7%. The business had an incredible quarter with a beat of analysts’ EPS and EBITDA estimates.

The market seems happy with the results as the stock is up 42.8% since reporting. It currently trades at $2.77.

Is now the time to buy AMC Entertainment? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: Hilton Grand Vacations (NYSE: HGV)

Spun off from Hilton Worldwide in 2017, Hilton Grand Vacations (NYSE: HGV) is a global timeshare company that provides travel experiences for its customers through its timeshare resorts and club membership programs.

Hilton Grand Vacations reported revenues of $1.36 billion, up 7.3% year on year, falling short of analysts’ expectations by 2.7%. It was a softer quarter as it posted a significant miss of analysts’ EPS and EBITDA estimates.

As expected, the stock is down 10.2% since the results and currently trades at $46.16.

Read our full analysis of Hilton Grand Vacations’s results here.

Travel + Leisure (NYSE: TNL)

Formerly known as Wyndham Destinations, Travel + Leisure (NYSE: TNL) is a global vacation company that provides travelers with vacation ownership, exchange, and travel services.

Travel + Leisure reported revenues of $1.06 billion, up 4.4% year on year. This number beat analysts’ expectations by 1.6%. Aside from that, it was a satisfactory quarter as it also logged EBITDA guidance for next quarter topping analysts’ expectations but a miss of analysts’ EPS estimates.

The stock is up 3.6% since reporting and currently trades at $76.02.

Read our full, actionable report on Travel + Leisure here, it’s free.

ADT (NYSE: ADT)

Founded in 1874 and headquartered in Boca Raton, Florida, ADT (NYSE: ADT) is a provider of security, automation, and smart home solutions, offering comprehensive services for home and business protection.

ADT reported revenues of $1.31 billion, up 2% year on year. This result surpassed analysts’ expectations by 1.8%. Overall, it was a satisfactory quarter as it also logged EPS in line with analysts’ estimates.

The stock is up 3.3% since reporting and currently trades at $7.59.

Read our full, actionable report on ADT here, it’s free.

Market Update

Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership.

Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products.

By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals.

Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.