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

McGraw Hill (NYSE:MH) released its quarterly earnings results on Thursday. The company reported $0.59 EPS for the quarter, beating analysts’ consensus estimates of $0.48 by $0.11, FiscalAI reports. The business had revenue of $549.90 million during the quarter. McGraw Hill had a return on equity of 57.92% and a net margin of 1.68%.McGraw Hill’s quarterly revenue was up 2.7% on a year-over-year basis.

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 Performance

Shares of MH stock traded down $0.65 during trading on Friday, reaching $12.92. 849,104 shares of the company’s stock traded hands, compared to its average volume of 624,678. The firm’s 50-day moving average is $10.60 and its 200 day moving average is $12.28. The company has a market capitalization of $2.47 billion and a P/E ratio of 64.83. McGraw Hill has a 1 year low of $8.94 and a 1 year high of $18.00. 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 News Summary

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

• Positive Sentiment: Quarterly results exceeded expectations. Fiscal Q1 2027 EPS was $0.59, above the $0.48 consensus estimate, while revenue rose approximately 2.6% year over year to $549.9 million. The results were driven by execution in the Higher Education and K-12 segments. McGraw Hill fiscal first-quarter results
• Positive Sentiment: Recurring revenue momentum was encouraging. Earnings-call coverage highlighted recurring revenue growth of about 10%, supporting the company’s longer-term visibility and subscription-oriented business model. McGraw Hill Q1 earnings call highlights
• Positive Sentiment: Analyst sentiment improved. BMO Capital Markets raised its price target from $16 to $17 and assigned an “outperform” rating. Needham reaffirmed its “buy” rating and set a $19 target, implying substantial potential upside from recent trading levels. Analyst rating updates
• Neutral Sentiment: Fiscal 2027 revenue guidance was maintained at $2.1 billion-$2.2 billion, broadly consistent with analyst expectations. The update was constructive but did not provide a clearly above-consensus outlook for the full year. McGraw Hill earnings and revenue report
• Negative Sentiment: The market reaction suggests some profit-taking or concern about valuation and balance-sheet risk. McGraw Hill trades at a relatively high earnings multiple, while its debt-to-equity ratio is elevated and its current and quick ratios are below 1. These factors may limit enthusiasm even after the earnings beat.

Institutional Investors Weigh In On McGraw Hill

Several institutional investors have recently made changes to their positions in the stock. Rhumbline Advisers bought a new position in McGraw Hill in the 3rd quarter worth about $279,000. Vanguard Group Inc. bought a new position in shares of McGraw Hill in the third quarter valued at approximately $32,923,000. Ameritas Investment Partners Inc. bought a new position in shares of McGraw Hill in the third quarter valued at approximately $25,000. Barclays PLC purchased a new position in McGraw Hill during the third quarter valued at approximately $765,000. Finally, Legal & General Group Plc bought a new stake in McGraw Hill during the 3rd quarter worth approximately $30,000.

Analysts Set New Price Targets

MH has been the topic of a number of research analyst reports. BTIG Research cut their target price on McGraw Hill from $19.00 to $17.00 and set a “buy” rating on the stock in a research note on Friday. Wall Street Zen lowered shares of McGraw Hill from a “buy” rating to a “hold” rating in a research report on Monday, July 20th. Weiss Ratings upgraded shares of McGraw Hill from a “sell (d-)” rating to a “sell (d)” rating in a report on Friday, June 12th. The Goldman Sachs Group decreased their price target on shares of 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, UBS Group decreased their target price on McGraw Hill from $17.00 to $14.00 and set a “neutral” rating for the company in a research report on Friday, June 12th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $18.22.

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.