McGraw Hill beats Q4 estimates as recurring revenue, digital learning growth, and margin improvement support results.
Stock Earnings Results
June 11, 2026
Table of Contents
June 11, 2026
McGraw Hill, Inc. (NYSE: MH) reported fiscal fourth-quarter and full-year 2026 results above expectations, supported by recurring revenue growth, digital learning adoption, margin improvement, debt reduction, and a new share repurchase plan.
McGraw Hill is a global education technology and learning company serving preK-12, higher education, professional learning, and international education markets.
The company reported adjusted EPS of $0.31, above estimates of $0.15, representing a 106.7% earnings surprise. Revenue came in at $463.72 million, above estimates of $441.20 million, though revenue growth was flat.
Fourth-quarter revenue was $463.7 million, down 2.0% year-over-year, reflecting a smaller K-12 market opportunity, partly offset by strength in Higher Education.
Adjusted EBITDA was $130.6 million, with adjusted EBITDA margin improving to 28.2%. Net loss improved to $50.3 million from a loss of $156.9 million a year earlier.
For fiscal 2026, total revenue was $2.10 billion, up 0.1%. Recurring revenue increased 5.8% to $1.54 billion, representing more than 73% of total revenue. Digital revenue increased 5.5% to $1.43 billion.
McGraw Hill also reported fiscal 2026 net income of $35.3 million, compared with a loss of $85.8 million last year. Adjusted EBITDA increased to $744.3 million, with margin improving to 35.4%.
The company said it now serves more than 100 million active student and educator curriculum licenses across more than 100 countries.
McGraw Hill also reported more than 7.5 million users of AI-enabled learning tools and over 25 billion learning interactions across its platforms.
Management said it is preparing to pilot a new Agentic AI tool as part of its precision education model.
For fiscal 2027, McGraw Hill expects revenue of $2.12 billion to $2.18 billion and adjusted EBITDA of $750 million to $790 million.
The company also approved a $50 million share repurchase plan.
McGraw Hill reduced gross debt by $645.6 million in fiscal 2026, including $50 million in the fourth quarter.
McGraw Hill delivered a stronger profitability story despite modest revenue growth.
The earnings beat, recurring revenue growth, digital learning momentum, AI product adoption, debt reduction, and buyback plan likely helped support the stock reaction. The key question is whether the company can turn its AI and digital learning tools into faster revenue growth in fiscal 2027.
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