The beat on adjusted EPS is modest and the GAAP decline is driven by non-operating investment losses, not the underlying business. Watch for continued education segment weakness and the impact of the DBS sale on future education revenue. The strong TV broadcasting and healthcare trends are positive offsets.
Price Chart
Executive Summary
Graham Holdings reported Q3 2026 revenue of $1.326B (+4% YoY) and GAAP net income of $75.1M ($17.60 diluted), down 39% from $122.9M ($27.91) in Q3 2025 due to a $15.0M loss on marketable equity securities vs a $84.8M gain a year ago. Adjusted non-GAAP net income rose to $80.2M ($18.77) from $62.0M ($14.08), beating the Street consensus of $18.36. Operating income grew 27% to $85.5M, driven by strong growth in television broadcasting (+81%) and healthcare (+11%), partially offset by a 20% decline in education operating income.
Key Financial Metrics
Key Facts
- Q3 2026 revenue $1.326B, up 4% from $1.279B YoY
- GAAP net income $75.1M ($17.60 diluted), down 39% from $122.9M ($27.91) YoY
- Adjusted non-GAAP net income $80.2M ($18.77), up 29% from $62.0M ($14.08) YoY
- Adjusted EPS of $18.77 beat consensus estimate of $18.36
- Operating income $85.5M, up 27% from $67.1M YoY
- Education segment revenue fell 14% to $404.3M; operating income down 20% to $39.3M
- Television broadcasting revenue up 19% to $125.3M; operating income up 81% to $48.5M
- Healthcare revenue up 25% to $260.3M; operating income up 11% to $23.2M
- Manufacturing revenue up 19% to $147.6M; operating income up 34% to $9.0M
- Automotive revenue up 5% to $299.1M; operating income up 48% to $9.3M
- Net loss of $15.0M on marketable equity securities vs $84.8M gain in Q3 2025
- Company repurchased 176,529 shares for $198.6M in first nine months of 2026
- Kaplan sold Dublin Business School for $127.5M; transaction closed Oct 27, 2026
- Debt of $853.4M at 5.8% average rate; cash and investments of $1,246.2M at Sep 30, 2026
Financial Impact
Adjusted EPS of $18.77 vs consensus $18.36, a 2.2% beat. Revenue of $1.326B vs consensus $1.33B, a slight miss. GAAP net income fell sharply due to marketable securities losses, but core operating income grew 27%.
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Education | $404.3M | -14.5% |
| Television broadcasting | $125.3M | +19.2% |
| Healthcare | $260.3M | +24.9% |
| Manufacturing | $147.6M | +18.8% |
| Automotive | $299.1M | +4.8% |
| Other businesses | $89.4M | +7.5% |
Risk Factors
- Education segment revenue declined 14% YoY, with Kaplan international down 22%
- GAAP net income fell 39% due to marketable securities losses; earnings quality is low
- No guidance provided; forward outlook is uncertain
- Capital expenditures nearly doubled to $39.6M from $20.2M, pressuring free cash flow
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-068048 |
| Document: ghc-20261029.htm | 0001628280-26-068048 |
| Document: 0001628280-26-068048-index-headers.html | 0001628280-26-068048 |
| Document: 0001628280-26-068048-index.html | 0001628280-26-068048 |
| Document: 0001628280-26-068048.txt | 0001628280-26-068048 |
| 8-K Data (Synthetic) | 0001628280-26-068048 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 29, 2026 3d ago | 8-K | $1,162.04 | awaiting T+60 | awaiting T+60 | $1,168.51 (+0.56%) |
Aug 14, 2026 11w ago | Institutional Cluster | $1,191.20 | awaiting T+60 | awaiting T+60 | $1,168.51 (−1.90%) |
Jul 30, 2026 13w ago | 8-K | $1,225.52 $1,213.48 | ▼ −0.98% | ▼ −3.45% | $1,168.51 (−4.65%) |
Mar 24, 2026 31w ago | DEFA14A | $1,060.80 $1,144.66 | ▲ +7.90% | ▼ −6.42% | $1,168.51 (+10.15%) |
Feb 25, 2026 35w ago | 8-K | $1,049.49 $1,103.73 | ▲ +5.17% | ▼ −1.78% | $1,168.51 (+11.34%) |
US Market Status
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