McGraw Hill (NYSE:MH) Posts Quarterly Earnings Results

McGraw Hill (NYSE:MH) posted its earnings results on Thursday. The company reported $0.75 EPS for the quarter, topping analysts’ consensus estimates of $0.70 by $0.05, FiscalAI reports. McGraw Hill had a return on equity of 62.57% and a net margin of 4.38%. The business had revenue of $632.21 million for the quarter. During the same quarter last year, the firm posted $1.40 EPS. The firm’s revenue for the quarter was down 5.5% on a year-over-year basis.

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

• Second-quarter revenue fell 5.5% year over year, with K-12 revenue down 9.6%, primarily reflecting weaker capture rates in select math markets. Management said first-half results were tracking to expectations and reaffirmed its full-year guidance.
• Higher Education continued to gain share, with first-half revenue up 4.5% and recurring revenue up 9.8%, despite flat-to-lower enrollment. Across the company, first-half recurring revenue grew 3.7% and digital revenue grew 5.6%.
• Management highlighted early momentum for its K-12 ELA program ahead of a multiyear adoption cycle, citing above-target win rates and strong feedback. California math pilots were up fourfold year over year, while the company acknowledged recent math-market weakness.
• McGraw Hill announced integrations that make its content available through Microsoft Copilot and Anthropic’s Claude for Teachers, alongside other AI initiatives. Management said adoption is growing but monetization models are still developing, with AI expected to contribute to revenue and profitability beginning in fiscal 2028.
• The company generated $190 million in operating cash flow in the first half, paid down another $50 million of debt, and ended the quarter at 3.2x net leverage. It reaffirmed expectations for approximately $400 million of unlevered free cash flow for fiscal 2027 and remains focused on reducing leverage.

McGraw Hill Stock Performance

MH stock traded down $0.58 during trading on Friday, hitting $10.64. The company had a trading volume of 443,479 shares, compared to its average volume of 613,694. The firm has a 50-day moving average price of $13.25 and a 200-day moving average price of $12.62. The company has a quick ratio of 0.62, a current ratio of 0.78 and a debt-to-equity ratio of 3.25. The firm has a market cap of $2.04 billion, a PE ratio of 21.33 and a beta of -0.82. McGraw Hill has a 1-year low of $8.94 and a 1-year high of $18.00.

Analyst Ratings Changes

A number of research analysts recently issued reports on the company. Needham & Company LLC restated a “buy” rating and set a $19.00 price target on shares of McGraw Hill in a research note on Thursday, August 13th. Weiss Ratings upgraded McGraw Hill from a “sell (d)” rating to a “sell (d+)” rating in a research note on Friday, October 23rd. UBS Group increased their price objective on McGraw Hill from $14.00 to $15.00 and gave the company a “neutral” rating in a report on Friday, August 14th. BTIG Research restated a “buy” rating and set a $17.00 target price on shares of McGraw Hill in a research report on Tuesday, September 22nd. Finally, Wall Street Zen raised shares of McGraw Hill from a “buy” rating to a “strong-buy” rating in a report on Saturday, October 24th. One analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $17.20.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of MH. Platinum Equity Advisors LLC DE purchased a new position in McGraw Hill during the 2nd quarter worth $1,304,765,706,000. Militia Capital Management LLC acquired a new stake in shares of McGraw Hill in the 1st quarter worth $1,907,000. Man Group plc acquired a new stake in shares of McGraw Hill in the 2nd quarter worth $1,054,000. Renaissance Technologies LLC lifted its stake in shares of McGraw Hill by 195.2% in the 1st quarter. Renaissance Technologies LLC now owns 169,100 shares of the company’s stock worth $2,317,000 after acquiring an additional 111,812 shares during the period. Finally, BlackRock Inc. purchased a new stake in shares of McGraw Hill in the second quarter valued at about $16,488,000.

Trending Headlines about McGraw Hill

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

• Positive Sentiment: McGraw Hill reported adjusted EPS of $0.75, above estimates of about $0.70–$0.73, and revenue of $632.2 million, roughly $2.9 million ahead of consensus. McGraw Hill Q2 results
• Positive Sentiment: The company is making its licensed K-12 curriculum available to school-district customers through Anthropic’s Claude for Teachers. The collaboration could strengthen McGraw Hill’s reach as educators adopt AI tools, though financial benefits are not yet quantified. Anthropic partnership announcement
• Neutral Sentiment: Fiscal 2027 revenue guidance of $2.12 billion–$2.18 billion has a midpoint of $2.15 billion, in line with FactSet consensus; the range therefore offered little clear near-term surprise. Fiscal 2027 revenue guidance
• Negative Sentiment: Despite the adjusted EPS beat, GAAP EPS of $0.45 missed estimates by $0.03. Revenue fell 5.5% year over year, and adjusted EPS was down from $1.40 in the prior-year quarter—weak comparisons that may have weighed on investor sentiment. Quarterly GAAP EPS and revenue report

McGraw Hill Company Profile

McGraw Hill was a diversified information and publishing company that operated across education, financial information and media. Its education business published textbooks, digital learning programs, assessment products and instructional resources for schools, colleges, universities and professional learners.

The company also owned Standard & Poor’s, which provided credit ratings, investment research, financial data and market indexes, including the S&P 500. Through these businesses, McGraw Hill served customers in the United States and international markets.

Founded in 1888 through the combination of publishing ventures established by James H.