The strong Q1 beat and reaffirmed guidance support the bull case for accelerating revenue growth and margin expansion. Monitor the peak K-12 selling season for further confirmation of the multi-year curriculum adoption cycle and ELA program momentum.
Price Chart
Executive Summary
McGraw Hill reported strong fiscal Q1 2027 results exceeding expectations, with revenue of $549.9M (+2.6% YoY), GAAP EPS of $0.30 (vs $0.00 prior year), and re-occurring revenue growth of 9.8% to $425.6M (77% of total). The company reaffirmed its FY2027 guidance and noted a Moody's credit rating upgrade in July 2026, signaling improving credit quality and operational momentum entering the peak selling season.
Key Financial Metrics
Key Facts
- Revenue of $549.9M, up 2.6% YoY, exceeding expectations
- GAAP net income of $57.9M vs $0.5M in prior-year period
- Re-occurring revenue of $425.6M, up 9.8% YoY, representing 77% of total revenue
- Adjusted EBITDA of $207.0M, margin 37.7% vs 35.7% prior year
- Moody's upgraded the company's credit ratings in July 2026
- FY2027 guidance reaffirmed: revenue $2,115M-$2,175M, Adjusted EBITDA $750M-$790M
Financial Impact
Revenue beat expectations by ~3.4% ($549.9M vs $532.0M consensus); GAAP net income surged to $57.9M from $0.5M YoY
Risk Factors
- K-12 market cyclicality and procurement timing could impact H2 revenue
- International segment revenue declined 12.1% YoY, partially offsetting domestic gains
- Net leverage remains elevated at 3.2x, though trending toward 2.0-2.5x target
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001951070-26-000038 |
| Document: mh-20260811.htm | 0001951070-26-000038 |
| Document: 0001951070-26-000038-index-headers.html | 0001951070-26-000038 |
| Document: 0001951070-26-000038-index.html | 0001951070-26-000038 |
| Document: 0001951070-26-000038.txt | 0001951070-26-000038 |
| 8-K Data (Synthetic) | 0001951070-26-000038 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 9, 2026 17d ago | 8-K | $13.58 | awaiting T+20 | — | $14.01 (+3.17%) |
Sep 25, 2026 4w ago | 8-K | $12.73 $14.62 | ▲ +14.85% | ▲ +16.32% | $14.01 (+10.05%) |
Aug 13, 2026 10w ago | 8-K | $13.57 $12.32 | ▼ −9.21% | ▼ −7.46% | $14.01 (+3.24%) |
Jun 25, 2026 17w ago | DEFA14A | $9.49 $9.56 | ▲ +0.74% | ▼ −0.52% | $14.01 (+47.63%) |
Jun 11, 2026 19w ago | 8-K | $12.36 $9.89 | ▼ −19.98% | ▼ −21.87% | $14.01 (+13.35%) |
US Market Status
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