Skillsoft (SKIL) Upgraded to Strong Buy: Here's What You Should Know

Skillsoft Corp. (SKIL) has been upgraded to a Zacks Rank #1 (Strong Buy) due to a 46.1% increase in the Zacks Consensus Estimate over the past three months for the fiscal year ending January 2026, driven by upward earnings estimate revisions. The Zacks Rank system, which has historically shown an average annual return of +25% for its #1 ranked stocks since 1988, suggests that Skillsoft's stock price may increase in the near term as a result of this upgrade.

Analysis

Skillsoft Corp. (SKIL) has been upgraded to a Zacks Rank #1 (Strong Buy), a bullish signal primarily attributed to a significant positive shift in earnings estimate revisions. Specifically, the Zacks Consensus Estimate for Skillsoft's earnings per share for the fiscal year ending January 2026 has seen a substantial increase of 46.1% over the past three months. This upward trend is a core component of the Zacks rating methodology, which posits that changes in earnings estimates are a powerful determinant of near-term stock price movements. While the consensus EPS forecast for the fiscal year ending January 2026 is -$2.47, which is unchanged compared to the year-ago reported figure, the magnitude of the positive revision in estimates indicates a markedly improved outlook from analysts regarding the company's underlying business fundamentals. The placement of SKIL into the top 5% of stocks covered by Zacks, a category that has historically demonstrated an average annual return of +25% since 1988, suggests a potential for near-term appreciation in the stock price.

Key Decisions for Investors

• Given Skillsoft's upgrade to a Zacks Rank #1 (Strong Buy) and the significant 46.1% positive revision in its consensus earnings estimate for FY2026, investors might consider this a signal for potential near-term upside in the stock.
• It is important to note that despite the improved analyst sentiment, the company is still projected to report a net loss of $2.47 per share for FY2026, indicating the positive revisions are from a previously more pessimistic baseline.
• Investors should closely monitor upcoming earnings reports and further estimate revisions to ascertain if the company's operational performance aligns with this more optimistic, albeit still loss-making, outlook.