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

McGraw Hill, Inc. (NYSE:MH)’s share price gapped up prior to trading on Thursday following a better than expected earnings announcement. 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 changing hands.

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

More McGraw Hill News

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

Wall Street Analyst Weigh In

MH has been the topic of several research analyst reports. Morgan Stanley raised their price objective on shares of McGraw Hill from $20.00 to $21.00 and gave the stock an “overweight” rating in a research note on Wednesday, December 17th. Macquarie Infrastructure restated an “outperform” rating and set a $19.00 price objective on shares of McGraw Hill in a report on Tuesday, January 13th. The Goldman Sachs Group decreased their target price on McGraw Hill from $25.00 to $22.00 and set a “buy” rating on the stock in a research report on Monday, December 22nd. UBS Group reaffirmed a “neutral” rating and issued a $17.00 price target on shares of McGraw Hill in a report on Thursday. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of McGraw Hill in a research note on Monday, December 29th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, McGraw Hill currently has an average rating of “Moderate Buy” and a consensus price target of $20.72.

Insider Activity

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

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of MH. Ameritas Investment Partners Inc. bought a new position in shares of McGraw Hill during the third quarter worth $25,000. Legal & General Group Plc bought a new stake in shares of McGraw Hill in the 3rd quarter valued at $30,000. Strs Ohio acquired a new stake in McGraw Hill during the 3rd quarter worth $54,000. State of Wyoming raised its stake in McGraw Hill by 34.2% during the 4th quarter. State of Wyoming now owns 21,623 shares of the company’s stock worth $357,000 after buying an additional 5,511 shares during the period. Finally, Nuveen LLC grew its stake in McGraw Hill by 20.9% in the fourth quarter. Nuveen LLC now owns 34,059 shares of the company’s stock valued at $562,000 after acquiring an additional 5,886 shares during the period.

McGraw Hill Stock Up 27.1%

The firm has a market cap of $3.00 billion and a P/E ratio of 11.08. The company has a quick ratio of 0.92, a current ratio of 1.01 and a debt-to-equity ratio of 3.52. The firm has a fifty day moving average price of $15.50.

About McGraw Hill

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.