Core Insights - Skillsoft Corp. (SKIL) shares have decreased by 69.2% year-to-date, significantly underperforming its industry, which has grown by 22.4%, and the Zacks S&P 500 Composite, which has risen by 20.7% [1] - The company has also lagged behind peers such as JBT Marel Corporation and MediaAlpha, which have seen increases of 9.9% and 17.8%, respectively [1] Year-to-Date Share Price Performance - Year-to-date, Skillsoft has declined by 69.2%, while JBT Marel and MediaAlpha have shown growth of 9.9% and 17.8% [1] - Over the past six months, Skillsoft's performance has been a decline of 58.2%, contrasting with JBT Marel's 12.9% growth and MediaAlpha's 20% growth [4] AI-Focused Innovations - Skillsoft's strategy includes AI-driven innovations aimed at enhancing learning design and skills intelligence, with over 20,000 certificates earned in areas like cloud, data, AI, and cybersecurity [5] - The company has improved a global semiconductor manufacturer's learning ecosystem for 43,000 employees, showcasing its commitment to AI-led innovation [6] - The Percipio platform has seen a 74% year-over-year increase in AI learners and a 158% increase in AI learning hours, indicating strong market demand for AI upskilling solutions [8] Financial Performance and Guidance - Skillsoft has lowered its fiscal 2026 revenue guidance from an initial expectation of $530-$545 million to a new range of $510-$530 million due to weak federal and discretionary spending [14] - The Zacks Consensus Estimate for fiscal 2026 revenues is $515.9 million, reflecting a 2.8% year-over-year decline, while the earnings per share estimate is $3.48, indicating a 19.6% year-over-year dip [18] Valuation and Capital Return - Skillsoft's return on equity (ROE) stands at 16.03%, surpassing the industry average of 15.29%, suggesting effective utilization of shareholders' equity [9] - The company is trading at a forward price-to-earnings ratio of 1.48, significantly below the industry average of 26.64, indicating potential undervaluation [11] Liquidity Position - As of the second quarter of fiscal 2026, Skillsoft's current ratio is 0.85, down from 0.88 in the previous year, which is below the industry average of 1.58, indicating challenges in meeting short-term obligations [16]

Core Insights - Skillsoft Corp. (SKIL) shares increased by 17.9% to close at $10.82, following a notable trading volume, despite a 46.3% loss over the past four weeks [1] - The company's Percipio platform has driven significant growth, with a 50% year-over-year increase in technology learners, 74% growth in AI learners, and a 158% rise in AI learning hours in Q2 of fiscal 2026 [2] - Skillsoft is projected to report quarterly earnings of $1.26 per share, reflecting a year-over-year increase of 169.2%, while revenues are expected to be $131.56 million, down 4.1% from the previous year [2] Earnings and Estimates - The consensus EPS estimate for Skillsoft has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [4] - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating strong market confidence [5] Industry Context - Skillsoft operates within the Zacks Technology Services industry, where another company, Richtech (RR), has seen a decline of 43.9% over the past month, closing at $3 [5] - Richtech's consensus EPS estimate for its upcoming report is -$0.03, which is a 40% improvement from the previous year, and it currently holds a Zacks Rank of 3 (Hold) [6]