McGraw Hill (NYSE:MH) Releases Quarterly Earnings Results, Beats Expectations By $0.16 EPS

McGraw Hill (NYSE:MHGet Free Report) posted its quarterly earnings results on Thursday, June 11th. The company reported $0.31 EPS for the quarter, beating the consensus estimate of $0.15 by $0.16, Zacks reports. The business had revenue of $463.72 million during the quarter. McGraw Hill had a net margin of 1.68% and a return on equity of 57.92%.

Here are the key takeaways from McGraw Hill’s conference call:

  • McGraw Hill said fiscal 2026 beat IPO expectations, with revenue of $2.1 billion and adjusted EBITDA of $744 million, while recurring revenue grew nearly 6% and now exceeds 73% of total revenue.
  • Management highlighted strong momentum in higher education, including 40 consecutive quarters of market share gains, share approaching 31%, and net dollar retention of 114%.
  • The company expects fiscal 2027 revenue of $2.115 billion-$2.175 billion and adjusted EBITDA of $750 million-$790 million, with guidance built on continued higher-ed share gains, a smaller K-12 market, and a return to growth in international.
  • In K-12, management said California math has been slower than expected and Texas remains in an experimentation phase, but the company still sees intact opportunities and expects ELA to become a larger growth driver during the nationwide literacy refresh cycle.
  • McGraw Hill is leaning into AI-enabled products and agentic tools, with eight AI learning tools already launched, more than 7.5 million users, and pilots underway for a new agentic AI business model that could expand TAM.

McGraw Hill Price Performance

Shares of McGraw Hill stock traded down $0.13 on Tuesday, hitting $10.44. 219,466 shares of the company were exchanged, compared to its average volume of 627,143. McGraw Hill has a 1-year low of $8.94 and a 1-year high of $18.00. The company has a quick ratio of 0.61, a current ratio of 0.77 and a debt-to-equity ratio of 3.53. The company has a 50-day moving average price of $11.34 and a 200 day moving average price of $13.32. The stock has a market capitalization of $2.00 billion and a price-to-earnings ratio of 52.15.

Institutional Investors Weigh In On McGraw Hill

Institutional investors have recently made changes to their positions in the stock. Ghisallo Capital Management LLC acquired a new position in shares of McGraw Hill in the third quarter valued at approximately $3,138,000. JPMorgan Chase & Co. purchased a new position in McGraw Hill in the 3rd quarter valued at approximately $14,600,000. Alberta Investment Management Corp purchased a new position in McGraw Hill in the 3rd quarter valued at approximately $12,550,000. American Century Companies Inc. acquired a new position in shares of McGraw Hill in the third quarter worth $37,786,000. Finally, TD Asset Management Inc purchased a new stake in shares of McGraw Hill during the third quarter worth $5,332,000.

Wall Street Analysts Forecast Growth

Several research analysts recently commented on MH shares. Deutsche Bank Aktiengesellschaft set a $16.00 target price on McGraw Hill in a research note on Friday, June 12th. BTIG Research restated a “buy” rating and issued a $19.00 target price on shares of McGraw Hill in a research note on Friday, June 26th. UBS Group cut their price objective on McGraw Hill from $17.00 to $14.00 and set a “neutral” rating on the stock in a report on Friday, June 12th. The Goldman Sachs Group cut their price target on shares of McGraw Hill from $19.00 to $17.00 and set a “buy” rating on the stock in a report on Thursday, June 11th. Finally, JPMorgan Chase & Co. decreased their price objective on shares of McGraw Hill from $21.00 to $20.00 and set an “overweight” rating for the company in a research note on Friday, June 12th. One research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $18.47.

Read Our Latest Report on MH

About McGraw Hill

(Get Free Report)

McGraw Hill (NYSE:MH) is a global learning science company specializing in educational content, digital learning platforms, and assessment solutions. The company offers textbooks and course materials for K-12 and higher education, along with professional development resources for corporate and workforce training. Its digital solutions—including adaptive learning platforms and analytics-driven tools—support personalized instruction, progress tracking, and interactive engagement in both classroom and remote environments.

Founded in 1888 in New York City, McGraw Hill has evolved from a technical periodical publisher into one of the world’s leading providers of educational content and technology.

Read More

Receive News & Ratings for McGraw Hill Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for McGraw Hill and related companies with MarketBeat.com's FREE daily email newsletter.