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McGraw Hill Fiscal Fourth-Quarter Revenue Falls Amid K-12 Drag

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McGraw Hill Fiscal Fourth-Quarter Revenue Falls Amid K-12 Drag

McGraw Hill (MH) reported an annual drop in fiscal fourth-quarter sales on Thursday amid weakness in the K-12 business.

The educational courses provider's revenue fell 2% to $463.7 million for the quarter ended March 31. Analysts surveyed by FactSet forecast sales of $439.9 million.

Sales in the K-12 segment, which covers kindergarten through 12th grade, fell 10% to $126.2 million, while higher education revenue rose 1.6% to to $258.3 million

"Fourth-quarter performance was also impacted by Middle East project delays that have shifted into the second half of fiscal year 2027," Chief Financial Officer Bob Sallmann said on a conference call, according to a FactSet transcript.

The stock was down 2.1% intraday Thursday, recovering from a steeper loss earlier in the day.

McGraw Hill reported adjusted earnings of $0.32 a share in the fourth quarter, swinging from an adjusted loss of $1.97 a year ago. Analysts polled by FactSet expected adjusted earnings of $0.17 per share.

McGraw Hill is preparing to pilot a new agentic artificial intelligence version of its precision education platform, Chief Executive Philip Moyer said in a statement.

"We have achieved over 7.5 million users of our new AI personalized learning tools and now have an existing base of more than 100 million active student and educator curriculum licenses in over 100 countries," Moyer said.

For fiscal 2027, the company expects revenue of $2.12 billion to $2.18 billion, compared with the FactSet consensus of $2.16 billion.

Price: $12.59, Change: $-0.22, Percent Change: -1.68%

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