McGraw Hill (NYSE:MH) Shares Gap Up After Better-Than-Expected Earnings

McGraw Hill, Inc. (NYSE:MH) shares gapped up prior to trading on Thursday after the company announced better than expected quarterly earnings. The stock had previously closed at $12.34, but opened at $14.95. McGraw Hill shares last traded at $15.5150, with a volume of 681,822 shares trading hands.

The company reported $0.28 earnings per share for the quarter, topping analysts’ consensus estimates of $0.05 by $0.23. The company’s revenue was up 4.2% compared to the same quarter last year.

McGraw Hill News Summary

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

• Positive Sentiment: Q3 earnings beat and revenue growth — McGraw Hill reported $0.28 EPS vs. $0.05 consensus and revenue +4.2% year-over-year, signaling operating leverage and stronger-than-expected results. Q3 Press Release
• Positive Sentiment: FY?2026 revenue guidance nudged above Street expectations — company updated FY revenue guidance around $2.1B versus a ~$2.0B consensus, supporting upside to estimates. Guidance Details
• Positive Sentiment: BTIG reaffirmed Buy with a $22 price target — implies ~45% upside from recent levels, which can attract momentum buyers. BTIG Note
• Positive Sentiment: Needham reaffirmed Buy with a $19 price target — another analyst vote of confidence that supports the rally. Needham Note
• Positive Sentiment: After?hours surge coverage — media noted a near?19% after?hours jump as markets digested the beat, guidance and analyst activity, reinforcing intraday momentum. MSN Coverage
• Neutral Sentiment: Earnings call and strategy detail — transcripts and highlights point to strong digital growth and strategic AI initiatives, which support longer?term thesis but may take time to fully translate to margins. Earnings Call Transcript
• Neutral Sentiment: Analyst/metric writeups — outlets (Zacks, Yahoo) provide deeper metric checks; useful for modelling but not immediate catalysts. Zacks Analysis
• Negative Sentiment: Rising short interest — short interest jumped ~31.8% in January to ~3.76M shares (?2.0% of float), increasing potential volatility and downside pressure if sentiment flips. Source: Short interest data

Analysts Set New Price Targets

A number of analysts have commented on the stock. Macquarie Infrastructure reiterated an “outperform” rating and issued a $19.00 price target on shares of McGraw Hill in a research note on Tuesday, January 13th. The Goldman Sachs Group reduced their price target on McGraw Hill from $25.00 to $22.00 and set a “buy” rating for the company in a report on Monday, December 22nd. BMO Capital Markets lowered their price target on McGraw Hill from $25.00 to $21.00 and set an “outperform” rating on the stock in a research report on Thursday, November 13th. Zacks Research cut McGraw Hill from a “strong-buy” rating to a “hold” rating in a research report on Monday, January 12th. Finally, UBS Group reiterated a “neutral” rating and set a $17.00 target price on shares of McGraw Hill in a research note on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $20.72.

Insider Transactions at McGraw Hill

In other McGraw Hill news, Director Steven Reinemund bought 15,710 shares of the business’s stock in a transaction on Friday, November 14th. The stock was purchased at an average cost of $15.03 per share, for a total transaction of $236,121.30. Following the completion of the purchase, the director directly owned 15,710 shares of the company’s stock, valued at approximately $236,121.30. This trade represents a ? increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is available through the SEC website.

Institutional Investors Weigh In On McGraw Hill

Institutional investors have recently added to or reduced their stakes in the business. Teacher Retirement System of Texas acquired a new position in shares of McGraw Hill in the 3rd quarter valued at about $7,530,000. Peregrine Capital Management LLC acquired a new position in McGraw Hill in the third quarter valued at approximately $3,443,000. Ghisallo Capital Management LLC bought a new position in shares of McGraw Hill during the 3rd quarter worth approximately $3,138,000. American Century Companies Inc. acquired a new stake in shares of McGraw Hill during the 3rd quarter worth approximately $37,786,000. Finally, JPMorgan Chase & Co. bought a new stake in shares of McGraw Hill in the 3rd quarter valued at $14,600,000.

McGraw Hill Stock Performance

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 firm’s 50 day simple moving average is $15.50. The company has a market cap of $3.00 billion and a P/E ratio of 11.08.

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.