Abstarct: This study investigates the impact of managerial learning from the market on the stability of firms’ financial performance among companies listed on the Tehran Stock Exchange. Drawing on the market learning perspective, managers can utilize information embedded in stock prices and investors’ reactions to improve their financial and operational decision-making processes. To test the research hypotheses, data from 127 sample firms over the period 2016–2025 were analyzed. the findings indicate that managerial learning from the market has a positive and significant effect on both earnings stability and operating cash flow stability. These results suggest that managers who effectively incorporate market feedback into their decision-making processes are able to make more efficient decisions and enhance the sustainability of corporate performance through improved investment, operational, and financial policies. However, the results reveal no significant relationship between managerial learning from the market and stock return stability. This finding implies that although learning from the market can improve firms’ fundamental performance, fluctuations in stock returns are largely driven by external factors, macroeconomic conditions, and investor behavior. Overall, the findings highlight the important role of capital markets as a valuable source of managerial learning and emphasize their contribution to enhancing the sustainability of firms’ financial performance.