McGraw Hill Shares Gain on Higher 1Q Profit, Revenue

By Connor Hart

Shares of McGraw Hill rose after the company logged a sharply higher profit and higher-than-expected revenue during its fiscal first quarter.

The stock climbed 6.4%, to $12.36, in early trading Thursday. Through Wednesday's close, shares are down roughly 29% year to date.

The education company before the bell posted a profit of $57.9 million, or 30 cents a share, for its three months ended June 30. That compares with a profit of $502,000, or breakeven on a per-share basis, a year earlier.

Stripping out one-time items, earnings were 59 cents a share. Analysts polled by FactSet expected adjusted earnings of 48 cents a share.

Revenue ticked up 2.6% to $549.9 million and came in ahead of Wall Street estimates for $532 million. The company attributed the increase primarily to strong execution across its higher education and K-12 segments.

McGraw Hill's higher education arm notched revenue of $199.8 million during the quarter, up 9.6% from last year on the back of market share gains, higher prices and increases in enrollment, the company said. Its K-12 business saw revenue tick up 1.3% to $274.4 million.

Chief Executive Philip Moyer said McGraw Hill stands to benefit from artificial intelligence, adding that the company's agentic strategy continues to progress and presents an opportunity to meaningfully expand its total addressable market in the years ahead.

"By harnessing this technology, it will augment our current solutions and reinforce our ability to deliver precision education, the right content at the right moment, to our more than 100 million active curriculum licenses," he said.

Looking ahead, McGraw Hill reaffirmed its outlook for revenue of $2.12 billion to $2.18 billion for the year. Analysts are looking for $2.15 billion.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

August 13, 2026 09:41 ET (13:41 GMT)