McGraw Hill Swings to $35M Net Income, Exceeds FY26 Guidance on Digital & Recurring Revenue Strength
MH is trading near its 52-week low of $10.695 (6.5% below the low) on elevated volume (1.9× avg).
Summary
McGraw Hill reported a significant turnaround in fiscal year 2026, achieving $35.3 million in GAAP net income compared to an $85.8 million loss in the prior year, and exceeding its guidance. This strong performance follows a Q3 2026 report of a narrowed net loss and comes amidst a recent class-action lawsuit filed by the company. The positive results are driven by a 5.8% increase in re-occurring revenue and 5.5% digital revenue growth, which now represents over 73% of total revenue. The company also reduced gross debt by $645.6 million, significantly strengthening its balance sheet. Management expects accelerated growth and margin expansion in fiscal year 2027, with new AI-enabled learning tools and an Agentic AI pilot underway.
At the time of this announcement, MH was trading at $10.00 on NYSE in the Technology sector, with a market capitalization of approximately $2.4B. The 52-week trading range was $10.70 to $18.00. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: Dow Jones Newswires.