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

McGraw Hill (NYSE:MH) issued its quarterly earnings results on Thursday. The company reported $0.59 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates 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 1.68% and a return on equity of 57.92%. The company’s revenue for the quarter 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 Price Performance

Shares of NYSE MH traded up $1.66 on Thursday, hitting $13.26. The company’s stock had a trading volume of 1,305,702 shares, compared to its average volume of 619,935. The stock has a 50 day moving average of $10.57 and a 200-day moving average of $12.29. The company has a market capitalization of $2.54 billion and a price-to-earnings ratio of 66.15. McGraw Hill has a 12-month low of $8.94 and a 12-month high of $18.00. The company has a debt-to-equity ratio of 3.53, a current ratio of 0.77 and a quick ratio of 0.61.

Hedge Funds Weigh In On McGraw Hill

Several hedge funds have recently bought and sold shares of MH. Militia Capital Management LLC acquired a new position in McGraw Hill in the 1st quarter valued at $1,907,000. Renaissance Technologies LLC lifted its stake in shares of McGraw Hill by 195.2% during the 1st quarter. Renaissance Technologies LLC now owns 169,100 shares of the company’s stock worth $2,317,000 after purchasing an additional 111,812 shares during the period. Arrowstreet Capital Limited Partnership boosted its holdings in shares of McGraw Hill by 110.3% during the first quarter. Arrowstreet Capital Limited Partnership now owns 469,499 shares of the company’s stock worth $6,432,000 after purchasing an additional 246,233 shares during the last quarter. Seven Grand Managers LLC grew its position in shares of McGraw Hill by 50.2% in the fourth quarter. Seven Grand Managers LLC now owns 300,000 shares of the company’s stock valued at $4,950,000 after purchasing an additional 100,250 shares during the period. Finally, Walleye Capital LLC grew its position in shares of McGraw Hill by 515.7% in the first quarter. Walleye Capital LLC now owns 102,139 shares of the company’s stock valued at $1,399,000 after purchasing an additional 85,550 shares during the period.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on MH. JPMorgan Chase & Co. cut their target price on McGraw Hill from $21.00 to $20.00 and set an “overweight” rating for the company in a research note on Friday, June 12th. Morgan Stanley cut their price objective on McGraw Hill from $21.00 to $18.00 and set an “overweight” rating for the company in a research report on Thursday, June 11th. Wall Street Zen downgraded McGraw Hill from a “buy” rating to a “hold” rating in a report on Monday, July 20th. The Goldman Sachs Group lowered their price target on shares of McGraw Hill from $19.00 to $17.00 and set a “buy” rating on the stock in a research note on Thursday, June 11th. Finally, BMO Capital Markets reduced their price objective on shares of McGraw Hill from $19.00 to $16.00 and set an “outperform” rating for the company in a research note on Monday, July 6th. 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 given a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $18.47.

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.