McGraw Hill, Inc. (NYSE:MH) surpassed revenue expectations in its first-quarter fiscal 2026 results on Thursday, with total revenue reaching $535.7 million, up 2.4% year-over-year, driven by strong performance in digital and recurring revenue.
Shares slipped 0.21% in after-hours trading following the announcement.
The education solutions provider reported breakeven earnings per share for the quarter ended June 30, 2025, an improvement from a loss of $0.06 per share in the same period last year. Digital revenue grew 7.2% to $325 million, while recurring revenue rose 7.1% to $387.6 million.
McGraw Hill’s Higher Education segment led the gains, with revenue climbing 14.1% year-over-year to $182.4 million, fueled by market share gains and rising demand for digital learning solutions. Meanwhile, the K-12 business saw a modest decline of 1.4% to $270.9 million, which the company attributed to a smaller market opportunity this fiscal year.
“McGraw Hill delivered strong performance in the fiscal first quarter reinforcing our leadership position in the market,” said Simon Allen, Chairman, President, and CEO. “Through our deep understanding of learning methodologies, our wealth of data and insights, and our responsible and impactful use of artificial intelligence, we are seeing strong demand for McGraw Hill solutions.”
Adjusted EBITDA rose 7.2% to $191.4 million, with margins expanding by over 150 basis points to 35.7%. Gross profit margin improved more than 90 basis points to 77.0%, driven by higher-margin digital growth.
For fiscal 2026, McGraw Hill reaffirmed its outlook, projecting revenue between $1.99 billion and $2.05 billion, and adjusted EBITDA of $663 million to $703 million. The company emphasized continued investments in personalized learning and digital innovation, including AI-powered tools like Scribe, which have accelerated product development while reducing costs.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.