McGraw Hill Inc. (NYSE:MH) shares are trending on Thursday.
Check out the current price of MH stock here.
After-Hours Decline Follows Intraday Surge
Shares of the education solutions provider closed at $14.09 on Wednesday following its fiscal second-quarter 2026 results, then slipped 0.92% in after-hours trading to $13.96.
Q2 Revenue Declines Amid Smaller K-12 Market
McGraw Hill's revenue and net income fell year over year in the second quarter.
| Metric | Q2 FY25 | Q2 FY24 | Year-over-Year Change |
|---|---|---|---|
| Revenue | $669.2 million | $688.6 million | -2.8% |
| GAAP Net Income | $105.3 million | $133.4 million | -21.1% |
According to the company, the decline reflected the anticipated smaller K-12 market opportunity.
With recurring revenue rising 6.5% year over year to $422.4 million and digital revenue rising 7.6% to $352.2 million, the company showed resilience in spite of the revenue decline.
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Margin Expansion and Guidance Upgrade
Generally accepted accounting principles (GAAP) gross profit and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margins both improved in the second quarter.
| Metric | Q2 FY25 | Year-over-Year Change |
|---|---|---|
| GAAP Gross Profit Margin | 79.2% | +150 basis points |
| Adjusted EBITDA Margin | 42.8% | +60 basis points |
The company raised its fiscal 2026 revenue guidance to $2,031-$2,061 million from $1,986-$2,046 million previously.
Market Share Gains Drive Performance
Simon Allen, Chairman, President and CEO of the company, said, “Our fiscal second quarter performance highlights how McGraw Hill successfully empowered educators and learners during the back-to-school season.”
Stock Performance
McGraw Hill's stock is down 17.12% over the past six months but has gained 14.55% in the past month.
With a market capitalization of $2.69 billion, McGraw Hill's stock has a 52-week range of $10.70 to $17.25.
Price Action: MH shares rose 23.92% during regular trading hours on Wednesday, according to Benzinga Pro data.
Benzinga Edge Stock Rankings indicate that MH has a negative price trend across all time frames. Track the performance of other players in this segment.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
