McGraw Hill Shares Slide 12.5% After Q4 EPS Beat and Upbeat 2027 Guidance
MH•McGraw Hill reported Q4 EPS of $0.32, beating forecasts by $0.15 per share, and revenue of $463.7 million, exceeding estimates by $23.9 million as sales fell 2%. Shares plunged 12.5% as the company issued fiscal 2027 guidance projecting $2.115-2.175 billion in revenue and $750-790 million in EBITDA, surpassing analyst estimates.
1. Q4 Financial Results
McGraw Hill posted adjusted EPS of $0.32 for Q4 fiscal 2026, outperforming the $0.17 consensus, and generated $463.7 million in revenue versus the $439.8 million estimate, though overall sales declined 2% year-on-year.
2. Stock Reaction
Following the release of its quarterly results and outlook, McGraw Hill’s stock fell 12.5% in premarket trading as investors weighed broader concerns over the company’s near-term growth prospects.
3. Fiscal 2027 Guidance
For fiscal 2027, the company forecast revenue between $2.115 billion and $2.175 billion, above the $2.08 billion consensus, and projected adjusted EBITDA of $750 million to $790 million, signaling confidence in operational performance.
4. Business Trends
In full fiscal 2026, total revenue edged up 0.1% to $2.10 billion, driven by a 5.8% increase in recurring revenue to $1.54 billion and a 5.5% rise in digital revenue to $1.43 billion, lifting adjusted EBITDA margin to 35.4%, up 80 basis points.
