McGraw Hill (NYSE:MH) Shares Gap Up After Strong Earnings

Shares of McGraw Hill, Inc. (NYSE:MH) gapped up before the market opened on Thursday following a stronger than expected earnings report. The stock had previously closed at $12.34, but opened at $14.95. McGraw Hill shares last traded at $15.5150, with a volume of 681,822 shares trading hands.

The company reported $0.28 earnings per share for the quarter, topping analysts’ consensus estimates of $0.05 by $0.23. McGraw Hill’s revenue was up 4.2% compared to the same quarter last year.

Trending Headlines about McGraw Hill

Here are the key news stories impacting McGraw Hill this week:

• Positive Sentiment: Q3 earnings beat — McGraw Hill reported $0.28 EPS versus a $0.05 consensus and revenue +4.2% year-over-year, underscoring better-than-expected operating performance. Read More.
• Positive Sentiment: Management highlights recurring revenue strength — CFO Bob Sallmann told Morning Movers that roughly 80% of revenue is recurring and described the model as durable, supporting investor confidence in predictability and margins. Read More.
• Positive Sentiment: FY-2026 revenue guidance lifted above consensus — McGraw Hill updated FY-2026 revenue guidance to about $2.1B versus a ~ $2.0B street estimate, which helped propel optimism on forward growth (company-provided guidance).
• Positive Sentiment: Analysts reaffirm buy ratings and raised price targets — BTIG and Needham both reiterated buys and set targets ($22.00 and $19.00, respectively), signaling institutional endorsement of the beat and guidance. Read More. Read More.
• Positive Sentiment: After‑hours market reaction covered by news outlets — coverage notes a significant after‑hours surge, amplifying investor attention and volume. Read More.
• Neutral Sentiment: Full earnings call and transcripts available — multiple transcripts and call highlights provide detail on digital growth, AI strategy and key metrics for investors doing deeper diligence. Read More. Read More.
• Neutral Sentiment: Analyst and media write-ups add color on metrics — outlets (Zacks, Yahoo) break down retention, digital growth and margin trends for investors assessing sustainability. Read More. Read More.
• Negative Sentiment: Leverage remains a risk — the company carries relatively high debt (debt/equity ~3.5), which could constrain flexibility and magnify downside if growth stalls (investors should weigh this when valuing the rally).

Wall Street Analysts Forecast Growth

MH has been the subject of a number of research reports. Needham & Company LLC restated a “buy” rating and set a $19.00 target price on shares of McGraw Hill in a report on Thursday. BTIG Research reissued a “buy” rating and set a $22.00 price objective on shares of McGraw Hill in a research note on Thursday. Zacks Research cut McGraw Hill from a “strong-buy” rating to a “hold” rating in a report on Monday, January 12th. Robert W. Baird set a $19.00 price target on McGraw Hill in a research report on Thursday. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of McGraw Hill in a report on Monday, December 29th. One research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, McGraw Hill presently has a consensus rating of “Moderate Buy” and an average price target of $20.38.

Institutional Trading of McGraw Hill

Several large investors have recently added to or reduced their stakes in the company. Jane Street Group LLC bought a new position in McGraw Hill in the 4th quarter valued at $1,041,000. MetLife Investment Management LLC increased its stake in McGraw Hill by 7.0% during the 4th quarter. MetLife Investment Management LLC now owns 15,404 shares of the company’s stock worth $254,000 after purchasing an additional 1,008 shares in the last quarter. Renaissance Technologies LLC acquired a new stake in shares of McGraw Hill during the fourth quarter worth $945,000. Federated Hermes Inc. bought a new stake in shares of McGraw Hill in the fourth quarter valued at about $1,945,000. Finally, New York State Common Retirement Fund bought a new stake in shares of McGraw Hill in the fourth quarter worth $135,000.

McGraw Hill Price Performance

The company has a current ratio of 1.01, a quick ratio of 0.92 and a debt-to-equity ratio of 3.52. The firm’s 50-day moving average price is $15.45. The company has a market capitalization of $2.72 billion and a price-to-earnings ratio of 10.19.

About McGraw Hill

McGraw Hill (NYSE:MH) is a global learning science company specializing in educational content, digital learning platforms, and assessment solutions. The company offers textbooks and course materials for K-12 and higher education, along with professional development resources for corporate and workforce training. Its digital solutions—including adaptive learning platforms and analytics-driven tools—support personalized instruction, progress tracking, and interactive engagement in both classroom and remote environments.

Founded in 1888 in New York City, McGraw Hill has evolved from a technical periodical publisher into one of the world’s leading providers of educational content and technology.