McGraw Hill (NYSE:MH) Posts Quarterly Earnings Results, Beats Expectations By $0.11 EPS

15 Aug 2026, 11:56 by Scott Moore · The Cerbat Gem

McGraw Hill (NYSE:MH – Get Free Report) announced its earnings results on Thursday. The company reported $0.59 earnings per share for the quarter, beating the consensus estimate of $0.48 by $0.11, FiscalAI reports. The business had revenue of $549.90 million for the quarter. McGraw Hill had a net margin of 4.38% and a return on equity of 63.04%. McGraw Hill’s quarterly revenue was up 2.7% compared to the same quarter last year.

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

Q1 exceeded expectations, with revenue up 2.6% year over year to $550 million, recurring revenue up 9.8% to $426 million, and adjusted EBITDA margin expanding 192 basis points to 37.7%.
Higher education revenue increased 10%, supported by roughly 4% enrollment growth, 2% pricing, and continued market-share gains; trailing 12-month share rose 140 basis points to above 30%.
McGraw Hill reported strong early capture rates for its new science-of-reading programs, while California ELA and Florida math approvals position the company for upcoming adoption cycles. Its paid ROAR dyslexia screener will be sold both as an add-on and standalone product, expanding the K–12 opportunity.
AI adoption is accelerating, with more than 7.5 million active users across eight AI learning tools and plans for three additional launches this fiscal year; management expects monetization through paid add-ons, AI access fees, and agentic tools.
Full-year fiscal 2027 guidance was reaffirmed rather than raised because higher-education enrollment and remaining K–12 awards are not yet fully visible. Management also noted that some K–12 revenue was delivered earlier in June instead of July, making first-half performance more meaningful than the quarterly comparison.

McGraw Hill Stock Down 3.4%

Shares of MH traded down $0.46 during midday trading on Friday, reaching $13.12. 1,482,812 shares of the stock were exchanged, compared to its average volume of 585,351. The company has a market capitalization of $2.51 billion and a P/E ratio of 26.23. The company has a current ratio of 0.77, a quick ratio of 0.61 and a debt-to-equity ratio of 3.53. McGraw Hill has a 52 week low of $8.94 and a 52 week high of $18.00. The company’s 50 day moving average is $10.61 and its two-hundred day moving average is $12.28.

Analyst Upgrades and Downgrades

Several equities analysts recently commented on MH shares. Wall Street Zen upgraded shares of McGraw Hill from a “hold” rating to a “buy” rating in a report on Saturday. Deutsche Bank Aktiengesellschaft set a $16.00 target price on McGraw Hill in a research report on Friday, June 12th. JPMorgan Chase & Co. reduced their price target on McGraw Hill from $21.00 to $20.00 and set an “overweight” rating on the stock in a report on Friday, June 12th. The Goldman Sachs Group decreased their price target on McGraw Hill from $19.00 to $17.00 and set a “buy” rating for the company in a research note on Thursday, June 11th. Finally, Morgan Stanley dropped their price objective on McGraw Hill from $18.00 to $16.00 and set an “overweight” rating for the company in a report on Friday. One investment analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, two have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $18.30.

View Our Latest Stock Analysis on MH

Institutional Trading of McGraw Hill

A number of hedge funds have recently added to or reduced their stakes in MH. MetLife Investment Management LLC increased its position in McGraw Hill by 7.0% during the 4th quarter. MetLife Investment Management LLC now owns 15,404 shares of the company’s stock valued at $254,000 after purchasing an additional 1,008 shares during the period. The Manufacturers Life Insurance Company raised its holdings in shares of McGraw Hill by 13.7% in the 4th quarter. The Manufacturers Life Insurance Company now owns 11,566 shares of the company’s stock valued at $191,000 after purchasing an additional 1,398 shares in the last quarter. Ameritas Investment Partners Inc. purchased a new stake in shares of McGraw Hill in the 3rd quarter worth approximately $25,000. Police & Firemen s Retirement System of New Jersey lifted its position in shares of McGraw Hill by 48.5% in the 4th quarter. Police & Firemen s Retirement System of New Jersey now owns 7,360 shares of the company’s stock worth $121,000 after purchasing an additional 2,404 shares during the period. Finally, Legal & General Group Plc bought a new position in shares of McGraw Hill during the third quarter valued at approximately $30,000.

McGraw Hill News Roundup

Here are the key news stories impacting McGraw Hill this week:

Positive Sentiment: McGraw Hill reported fiscal Q1 2027 EPS of $0.59, exceeding the $0.48 consensus estimate and improving from break-even earnings a year earlier. Revenue rose approximately 2.6% to $549.9 million, driven by strength in its Higher Education and K-12 businesses. McGraw Hill fiscal first-quarter results
Positive Sentiment: Management maintained a constructive outlook, issuing fiscal 2027 revenue guidance of approximately $2.1 billion to $2.2 billion, broadly in line with Wall Street expectations. The earnings discussion also highlighted recurring-revenue growth and increased use of artificial intelligence in the company’s offerings. McGraw Hill Q1 earnings call highlights
Positive Sentiment: Analysts raised their targets after the results: BMO Capital Markets lifted its target to $17 and assigned an “outperform” rating, while Needham reaffirmed its “buy” rating with a $19 target. UBS also raised its target to $15, though it retained a neutral rating. Analyst target changes
Neutral Sentiment: The target increases imply meaningful potential upside from recent trading levels, but UBS’s neutral stance indicates that some analysts view the stronger results as already partly reflected in the stock’s valuation. McGraw Hill trades at a relatively high earnings multiple, with significant debt and below-one current and quick ratios, which may be contributing to the stock’s subsequent weakness.

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.