McGraw Hill Q3 revenue rises 4.2%, raises FY guidance

McGraw Hill

11/02/2026 21:19

Overview

Education solutions provider's fiscal Q3 revenue rose 4.2% yr/yr, driven by higher education growth

Q3 Adjusted EBITDA margin increased nearly 100 basis points yr/yr

Company raised fiscal year 2026 guidance

Outlook

McGraw Hill raises fiscal year 2026 revenue guidance to $2,067 mln - $2,087 mln

Company expects fiscal year 2026 adjusted EBITDA between $729 mln and $739 mln

McGraw Hill cites digital transformation and AI solutions as growth drivers

Result Drivers

HIGHER EDUCATION GROWTH - Revenue in higher education increased 24% yr/yr, driven by market share gains and favorable enrollment trends

RE-OCCURRING REVENUE - Re-occurring revenue rose 14.8% yr/yr, highlighting the scalability of subscription-based solutions

DIGITAL REVENUE - Digital revenue increased 11% yr/yr, supported by AI-driven solutions and platform scalability

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
$434.16 mln
Q3 EPS
-$0.11
Q3 Adjusted Net Income
$52.96 mln
Q3 Net Income
-$20.20 mln
Q3 Adjusted EBITDA
$135.87 mln
Q3 Adjusted EBITDA Margin
31.30%


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 $21.00, about 61.5% above its February 10 closing price of $13.00

The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

Press Release: ID:nBwbJQzrVa

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(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.)