Purpose: The aim of this study was two-fold: to demonstrate a general construct of schools called academic optimism and to show it was related to student achievement in urban elementary schools, even controlling for socioeconomic factors, and school size. Design/methodology/approach: Data were collected from 99 urban elementary schools in Texas and multiple regression and factor analyses were used to test a series of hypotheses guiding the inquiry. Findings: The major hypotheses of the study were supported; academic optimism was a second-order construct comprised of collective efficacy, faculty trust, and academic optimism. Moreover, academic optimism is a school characteristic that predicts student achievement even controlling for socioeconomic status. Practical implications: The results support Bandura's social cognitive theory, Coleman's social capital theory, Hoy and Tarter's work on organizational climate, and demonstrate the existence of a cultural property of schools called academic optimism. Further, the findings have practical implications for developing strategies to improve the academic performance of urban schools. Originality/value: The findings demonstrate the existence of a new collective construct, academic optimism, which has the potential to help improve the effectiveness of schools. (Contains 5 tables.)