McGraw Hill Q1 revenue rises on growth in AI initiatives

McGraw Hill

13/08/2026 12:36

Overview
Global education solutions provider's fiscal Q1 revenue grew 2.6% yr/yr to $549.9 mln
Adjusted EBITDA margin for fiscal Q1 expanded to 37.7% from 35.7% last yr
Company attributed results to market share gains, price realization, and increased enrollment

Outlook
McGraw Hill reaffirms fiscal 2027 revenue guidance of $2.115 bln to $2.175 bln
Company expects fiscal 2027 re-occurring revenue of $1.587 bln to $1.627 bln
Company anticipates fiscal 2027 adjusted EBITDA of $750 mln to $790 mln

Result Drivers
AI INITIATIVES - Co said AI contributed to revenue growth, margin expansion, price realization and market share gains
RE-OCCURRING AND DIGITAL REVENUE - Co highlighted growth in re-occurring and digital revenue as key drivers, reflecting strength of technology-based solutions
HIGHER EDUCATION MARKET SHARE GAINS - Co attributed Higher Education segment growth to market share gains, price realization and increases in enrollment

Company press release: ID:nBw3G6vZma

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
 
$549.90 mln
 
Q1 EPS
 
$0.30
 
Q1 Adjusted Net Income
 
$112.75 mln
 
Q1 Net Income
 
$57.86 mln
 
Q1 Adjusted EBITDA
 
$207.05 mln
 
Q1 Adjusted EBITDA Margin
 
37.70%
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the consumer publishing peer group is "buy"
Wall Street's median 12-month price target for McGraw Hill, Inc. is $18.00, about 55.2% above its August 12 closing price of $11.60
The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 7 three months ago

Reuters Recommended Reads
Aug 10 - American Public Education Q2 revenue beats estimates; raises 2026 outlook
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Aug 12 - Boxlight Q2 revenue falls on lower audio unit sales

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)