McGraw Hill Reports Mixed Second Quarter Financial Results
Publisher sees revenue decline despite growth in digital and higher education segments.
1Quarterly Revenue Performance
McGraw Hill reported a 5.5% drop in total second quarter revenue, reaching $632.2 million for the period ending September 30, 2026. Net income fell by 18% to $86.4 million. While higher education sales saw a marginal 0.2% increase to $213.5 million, this was insufficient to offset the significant 9.6% decline in el-hi sales.
2Segmented Sales Dynamics
The el-hi division struggled due to lower math textbook sales, which overshadowed gains in science and English Language Arts. Conversely, international revenue grew by 1.6% to $51.1 million, bolstered by the fulfillment of previously delayed shipments in the Middle East. Global professional sales experienced a slight contraction, falling to $38.7 million from $39.8 million.
3Digital Transformation Strategy
The company continues its strategic pivot toward digital publishing, which saw revenue rise 2.6% to $361.4 million. In contrast, print sales experienced a sharp 14.5% decline, totaling $271 million for the quarter. This shift reflects broader industry trends where educational institutions increasingly prioritize digital access over traditional physical textbooks to manage student costs.
4Inclusive Access Programs
Higher education growth was partially driven by inclusive access programs. These initiatives allow students to pay for course materials as part of their tuition or through specific semester fees. By integrating content directly into student billing, McGraw Hill has successfully secured market share gains despite the challenging broader economic environment for educational publishers.
5AI Integration Initiatives
McGraw Hill is actively integrating its proprietary educational content with advanced artificial intelligence platforms. The company has established connections with Microsoft Copilot and Anthropic’s Claude for Teachers. These partnerships aim to embed educational resources directly into AI workflows, potentially creating new delivery mechanisms for their vast library of academic and professional learning materials.
6Fiscal Year Outlook
Despite the quarterly profit dip, net income for the first six months of fiscal 2027 reached $144.2 million, up from $105.8 million in the same period last year. The company maintains its full-year sales guidance between $2.11 billion and $2.17 billion, with adjusted EBITDA projected to fall within the $750 million to $790 million range.
7Leadership Transition Updates
The company announced new leadership for its two primary operating segments. Robin Lucas, formerly the chief sales officer, has been appointed president of the higher education business, succeeding the retiring Michael Ryan. Additionally, Jana Thompson has been named president of the K-12 business, transitioning from her previous role as interim president and chief product officer.
8Strategic Market Positioning
McGraw Hill’s performance reflects the volatility inherent in the educational publishing sector. While print revenue continues to shrink, the company’s focus on digital integration and inclusive access models provides a pathway for stability. Investors should monitor how these new leadership appointments influence the execution of the company’s long-term digital-first strategy and AI-driven content distribution.
Original article: Publishers Weekly — McGraw Hill Reports Mixed Second Quarter Financial Results