McGraw Hill, Inc. (MH)
NYSE:MH
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Earnings Data
Report Date
Aug 13, 2026Before Open (Confirmed)
Period Ending
2027 (Q1)Consensus EPS Forecast
0.48Last Year’s EPS
0Same Quarter Last Year
Strong Buy
Based on 11 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call presented a predominantly positive operational and financial picture: key strengths include higher-education share gains (approaching 31%), recurring revenue growth (~6% to $1.5B), margin expansion (≈+80 bps), meaningful AI product traction (8 tools, >7.5M users), strong learning outcomes validated by independent research, and significant debt reduction ($646M). Headwinds are concentrated in K–12 (FY2026 K–12 revenue down 9%), slower-than-expected California math adoption (timing shift of ~$100M), international macro pressures (FY2026 international revenue -7% and a $39M impairment), and some one-time benefits in FY2026 that are not recurring. Management provided conservative but above-IPO-expectations guidance for recurring revenue and EBITDA, and is piloting agentic AI/knowledge models with commercial and pricing work still underway. Overall, strengths in higher education, AI-enabled product adoption, cash generation, and balance sheet improvement outweigh the K–12 and international timing challenges, which are framed as addressable and timing-related.Company Guidance
Full Year Revenue Above Guidance
Fiscal 2026 revenue of $2.1 billion came in above the high end of the guided range and was $2 million above prior year, demonstrating resilience versus expectations.
Recurring and Digital Revenue Strength
Recurring revenue grew ~6% year-over-year to $1.5 billion and now represents over 73% of total revenue. In the fourth quarter, recurring revenue was $373 million (81% of total) and digital revenue was $393 million (85% of total).
Higher Education Market Share and Growth
Higher education revenue grew 12% year-over-year to $879 million for FY2026, with Q4 higher ed revenue up nearly 2% to $258 million. Market share reached ~31% (approaching 31% per MPI) and the company recorded its 40th consecutive quarter of higher ed share gains; net dollar retention in higher ed was 114%.
Profitability and Margin Expansion
Fiscal year adjusted EBITDA was $744 million, up ~2% year-over-year, with adjusted EBITDA margin expanding by nearly 80 basis points to 35.4%. Q4 adjusted EBITDA was $131 million with margins expanding ~40 basis points year-over-year; Q4 gross margin increased ~50 basis points.
Cash Generation and Balance Sheet Progress
Cash from operations was $331 million and the company generated $335 million of unlevered free cash flow in FY2026. Management reduced gross debt by $646 million during the year, ended the year with $254 million cash and $704 million total liquidity, and repurchased $40 million of high-coupon notes in the open market.
AI Product Momentum and User Adoption
Launched eight AI learning tools serving more than 7.5 million users, with three additional launches planned. Company highlighted a proprietary content and data moat: >100 million active licenses (students & educators), ~25.6 billion learning interactions captured, and ~190 terabytes of learning data to tune education-specific AI.
Notable Learning Outcomes and Research Validation
Independent research validated meaningful outcomes: ALEKS students achieved topic mastery >90% of the time; example district results included first graders +25 points and second graders +55 points in math assessments; Sharpen users at Rowan College had final exam scores 47% higher than non-users; AI Reader drove 57 million interactions across 2.4 million students.
FY2027 Guidance and Capital Actions
FY2027 guidance: revenue $2.115B–$2.175B, recurring revenue $1.587B–$1.627B, adjusted EBITDA $750M–$790M (implied margin ~35.9% at midpoint, +50 bps YoY). Unlevered free cash flow guidance ~$400M (≈+20% YoY). Board authorized a $50 million share repurchase plan and management reiterated a disciplined capital allocation focus (reinvestment, debt reduction, selective tuck-ins).
MH Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
MH Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Jun 11, 2026 | $12.80 | $12.36 | -3.44% |
Feb 11, 2026 | $12.34 | $14.31 | +15.96% |
Nov 12, 2025 | $11.37 | $14.09 | +23.92% |
Aug 14, 2025 | $14.13 | $13.31 | -5.80% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does McGraw Hill, Inc. (MH) report earnings?
McGraw Hill, Inc. (MH) is schdueled to report earning on Aug 13, 2026, Before Open (Confirmed).
What is McGraw Hill, Inc. (MH) earnings time?
McGraw Hill, Inc. (MH) earnings time is at Aug 13, 2026, Before Open (Confirmed).
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What is MH EPS forecast?
MH EPS forecast for the fiscal quarter 2027 (Q1) is 0.48.