McGraw Hill, Inc. reported its fourth-quarter fiscal 2026 earnings, revealing adjusted earnings per share (EPS) of $0.32, exceeding the Zacks Consensus Estimate of $0.15 by 113.3%. The company generated revenues of $463.7 million, surpassing the estimated $441.2 million by 5.1%.
For fiscal 2027, McGraw Hill projects revenues between $2.12 billion and $2.18 billion, with recurring revenues anticipated to reach between $1.59 billion and $1.63 billion. Adjusted EBITDA is expected to be in the range of $750 million to $790 million, reflecting a midpoint margin of 35.9%, an increase of 50 basis points year over year. Key challenges remain in the K-12 segment, where revenues fell 8.9% to $884.5 million, exacerbated by delayed adoption decisions in critical markets.
Management highlighted ongoing efforts in AI-enabled product expansion, launching eight new tools serving over 7.5 million users, with plans for three additional launches this fiscal year, emphasizing that custom AI solutions are more beneficial than generic options.
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