McGraw Hill (NYSE:MH) Announces Quarterly Earnings Results

McGraw Hill (NYSE:MH) announced its quarterly earnings results on Wednesday. The company reported $0.28 EPS for the quarter, beating the consensus estimate of $0.05 by $0.23, Zacks reports. The business’s revenue was up 4.2% compared to the same quarter last year.

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

• Raised FY26 guidance after a strong Q3: revenue $434M (+4.2% YoY), recurring revenue +14.8% (82% of revenue), digital +11%, and Adjusted EBITDA $136M (+7.7%) with a 31.3% margin.
• Higher education momentum — HE revenue +24% to $225M, record ~30% market share, Evergreen now ~70% of HE revenue, and AI Reader surpassed 1M students while ALEKS for Calculus expands TAM.
• K?12 revenue fell 14.6% to $128M despite share gains and wins (Florida ELA); management expects FY27 to improve as large state cycles (California, Florida, Texas) progress but near?term comps remain tough.
• Strong cash generation and deleveraging — $309M operating cash flow in Q3, $514M cash / $964M liquidity, $596M of term?loan prepayments YTD, and net leverage down to 2.9x with continued paydowns planned toward a 2.0–2.5x target.
• Accelerating AI product adoption and strategy — multiple AI offerings (Sharpen Advantage, Teacher/Writing Assistant, Clinical Reasoning, AI Reader) and a Morning Consult ranking underscore McGraw Hill’s push for personalized, institution?level AI differentiation.

McGraw Hill Stock Up 23.3%

Shares of NYSE MH opened at $15.22 on Thursday. The business has a fifty day moving average price of $15.50. McGraw Hill has a 52 week low of $10.69 and a 52 week high of $18.00. The company has a current ratio of 1.01, a quick ratio of 0.92 and a debt-to-equity ratio of 3.52. The stock has a market capitalization of $2.91 billion and a P/E ratio of 10.96.

McGraw Hill News Summary

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

• Positive Sentiment: Q3 earnings beat consensus — McGraw Hill reported $0.28 EPS vs. $0.05 expected and revenue grew ~4.2% year-over-year, showing solid digital and subscription performance that beat Street expectations. Earnings Summary
• Positive Sentiment: FY2026 revenue guidance lifted to roughly $2.1B, above consensus of ~$2.0B — management’s guide implies continued top-line momentum and helps justify the bullish reaction. (Guidance entry.)
• Positive Sentiment: Analyst support — Needham & Company reaffirmed a “buy” and set a $19 price target, signaling institutional confidence and providing a clear upside thesis for investors. Analyst Note
• Neutral Sentiment: After-hours trading moved the stock notably higher following the release and analyst coverage, reflecting immediate market re-pricing on the results and guidance. Market Reaction
• Neutral Sentiment: Management commentary and the full earnings call/slide deck are available for diligence — useful for judging sustainability of digital growth and AI investments. Earnings Call Transcript Press Release / Slide Deck
• Negative Sentiment: Short interest jumped ~31.8% in January to ~3.76M shares (about 2% of shares outstanding) with a days-to-cover near 6.7 — this can amplify intraday moves and create near-term volatility.
• Negative Sentiment: Balance-sheet/leverage risk — the company’s debt-to-equity ratio is elevated (~3.5) and liquidity ratios are tight (quick ratio ~0.92, current ratio ~1.01), which increases execution risk if growth slows.

Insider Transactions at McGraw Hill

In other news, Director Steven Reinemund acquired 15,710 shares of the firm’s stock in a transaction on Friday, November 14th. The shares were purchased at an average price of $15.03 per share, for a total transaction of $236,121.30. Following the completion of the transaction, the director owned 15,710 shares of the company’s stock, valued at $236,121.30. The trade was a ? increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website.

Hedge Funds Weigh In On McGraw Hill

A number of institutional investors have recently bought and sold shares of the stock. Ameritas Investment Partners Inc. bought a new stake in McGraw Hill during the 3rd quarter valued at approximately $25,000. Legal & General Group Plc bought a new stake in shares of McGraw Hill during the third quarter valued at approximately $30,000. BNP Paribas Financial Markets purchased a new stake in McGraw Hill in the third quarter worth $83,000. Bank of America Corp DE bought a new position in McGraw Hill in the third quarter worth $132,000. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. purchased a new position in McGraw Hill during the third quarter valued at $137,000.

Wall Street Analyst Weigh In

Several research analysts have recently commented on the company. The Goldman Sachs Group cut their price objective on McGraw Hill from $25.00 to $22.00 and set a “buy” rating for the company in a report on Monday, December 22nd. Macquarie Infrastructure reissued an “outperform” rating and issued a $19.00 price target on shares of McGraw Hill in a research note on Tuesday, January 13th. Morgan Stanley raised their price objective on shares of McGraw Hill from $20.00 to $21.00 and gave the company an “overweight” rating in a research report on Wednesday, December 17th. BMO Capital Markets reduced their target price on McGraw Hill from $25.00 to $21.00 and set an “outperform” rating on the stock in a research note on Thursday, November 13th. Finally, BTIG Research reiterated a “buy” rating and set a $22.00 price objective on shares of McGraw Hill in a research report on Thursday. One analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $20.63.

McGraw Hill Company Profile

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.