Abstract

McGraw Hill will report fiscal Q4 2025 results on February 11, 2026, Pre-Market; this preview synthesizes recent financials, company guidance, and institutional perspectives to frame revenue, margin, and EPS expectations for the quarter.

Market Forecast

Consensus and company-anchored projections indicate McGraw Hill’s current quarter revenue at USD 410.82 million, with adjusted EPS at USD 0.10 and EBIT at USD 44.88 million; year-over-year growth rates were not disclosed. Forecast commentary implies a stable gross profit margin near the prior quarter’s 79.22%, with net profit margin tracking in the mid-teens near 15.73%, and adjusted EPS expected to normalize from the prior quarter’s seasonally elevated outcome. The main business highlight centers on the K–12 Education segment’s scale and resilience, with a steady contribution expected from Higher Education and incremental growth from International. The most promising segment appears to be K–12 Education, with last quarter revenue of USD 359.15 million; year-over-year growth was not disclosed.

Last Quarter Review

McGraw Hill’s previous quarter delivered revenue of USD 669.19 million, a gross profit margin of 79.22%, GAAP net profit attributable to the parent company of USD 105.00 million, a net profit margin of 15.73%, and adjusted EPS of USD 1.40; year-over-year changes were not disclosed. A notable highlight was the outperformance versus prior expectations, with EBIT of USD 249.80 million exceeding the estimate by USD 75.86 million and adjusted EPS of USD 1.40 surpassing the USD 0.40 estimate. Main business highlights include K–12 Education revenue of USD 359.15 million, Higher Education revenue of USD 212.96 million, International revenue of USD 50.35 million, Global Professional revenue of USD 39.81 million, and Other revenue of USD 6.93 million; year-over-year growth rates were not disclosed.

Current Quarter Outlook

K–12 Education

K–12 Education remains the largest revenue contributor, anchored by adoption cycles across major states and ongoing demand for core curriculum, supplemental, and digital instructional solutions. This quarter, revenue timing will hinge on state procurement calendars, with potential normalization after a strong prior quarter. Pricing discipline, digital renewal rates, and contract retention should sustain margin integrity, aligning with a gross margin profile near last quarter’s 79.22%. Watch for adoption results and district-level budget conditions, as these will drive unit volumes and conversion of pipeline opportunities into recognized revenue.

Higher Education

Higher Education performance typically exhibits seasonality around spring term adoptions and digital courseware usage. The quarter’s outcome will depend on institutional purchasing patterns, inclusive access program growth, and the mix shift toward subscription-based platforms. Conversion of print to digital continues to support unit economics due to lower fulfillment costs and improved engagement analytics, which can protect gross margin. The segment’s revenue in the prior quarter was USD 212.96 million; for this quarter, maintaining steady renewal rates and avoiding discount pressure will be essential to sustaining EBIT near the USD 44.88 million forecast for the consolidated business.

International

International revenue contributes diversification but is sensitive to local academic calendars and currency translation. Last quarter revenue stood at USD 50.35 million, with this quarter’s prospects tied to regional curriculum cycles and institutional tenders. Product mix skewed toward English-language learning and localized curriculum should support stability, while any currency headwinds may affect reported figures. The segment’s contribution to gross margin is expected to be supportive yet modest relative to K–12 Education, helped by continued expansion of digital licensing.

Global Professional

Global Professional revenue was USD 39.81 million last quarter and is driven by corporate learning, certification content, and specialized professional publications. The quarter’s trajectory will reflect enterprise training demand and renewal cadence for digital libraries and platforms. While not the largest driver of consolidated revenue, consistent performance and cost control can aid consolidated EBIT and maintain mid-teens net margin resilience. Developments in professional credentialing markets and institutional partnerships may incrementally lift revenue.

Key Stock Price Drivers This Quarter

The stock’s near-term reaction will be shaped by revenue delivery against the USD 410.82 million forecast, progress on margins relative to the last quarter’s 79.22% gross margin and 15.73% net margin, and adjusted EPS execution around USD 0.10. A rhythm of digital subscription renewals and institutional adoption wins in K–12 Education can support confidence in forward growth. Any commentary on pipeline visibility, state adoption outcomes, and digital penetration rates will likely influence how investors extrapolate margin durability and revenue stability into fiscal 2026.

Analyst Opinions

Institutional commentary gathered indicates a cautiously positive tilt, with the majority expecting McGraw Hill to meet or modestly exceed revenue and EPS targets this quarter. Analysts emphasize the company’s strong pricing and renewal framework, highlighting potential stabilization in gross margin near the high-70% range and net margin in the mid-teens. Leading voices point to K–12 Adoptions as the anchor of the quarter, with digital momentum expected to underpin overall performance and reinforce visibility into the next fiscal cycle. These views underscore the importance of delivery versus the USD 410.82 million revenue and USD 0.10 adjusted EPS benchmarks, with attention on whether EBIT prints near USD 44.88 million in line with projections.