McGraw Hill (NYSE:MH) Shares Gap Up After Earnings Beat

Key Points

• McGraw Hill reported $1.40 EPS versus a $0.35 consensus, sending the stock to gap up — it opened at $13.32 after closing at $11.37 and last traded around $13.93 on volume of ~509,000 shares.
• Despite the earnings beat, revenue was down about 2.8% year‑over‑year, showing mixed underlying performance.
• Analyst sentiment is positive overall with a consensus rating of "Moderate Buy" and a consensus price target of $20.97, after several firms initiated coverage with buy/outperform calls (targets roughly $18–$28.60).

McGraw Hill, Inc. (NYSE:MH - Get Free Report)'s share price gapped up prior to trading on Wednesday following a stronger than expected earnings report. The stock had previously closed at $11.37, but opened at $13.32. McGraw Hill shares last traded at $13.93, with a volume of 509,014 shares.

The company reported $1.40 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.35 by $1.05. The company's revenue was down 2.8% on a year-over-year basis. McGraw Hill has set its FY 2026 guidance at EPS.

Wall Street Analyst Weigh In

MH has been the subject of a number of analyst reports. Rothschild & Co Redburn started coverage on shares of McGraw Hill in a report on Monday, August 18th. They set a "buy" rating and a $28.60 target price for the company. Wall Street Zen cut shares of McGraw Hill from a "buy" rating to a "hold" rating in a report on Saturday, August 16th. Deutsche Bank Aktiengesellschaft assumed coverage on shares of McGraw Hill in a report on Monday, August 18th. They set a "buy" rating and a $18.00 target price for the company. Robert W. Baird began coverage on shares of McGraw Hill in a report on Monday, August 18th. They set an "outperform" rating and a $21.00 price target on the stock. Finally, Stifel Nicolaus assumed coverage on McGraw Hill in a report on Monday, August 18th. They issued a "buy" rating and a $19.00 price objective for the company. One equities research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $20.97.

Hedge Funds Weigh In On McGraw Hill

Hedge funds have recently made changes to their positions in the business. Ameritas Investment Partners Inc. purchased a new stake in McGraw Hill during the 3rd quarter valued at approximately $25,000. Strs Ohio bought a new position in shares of McGraw Hill during the third quarter worth $54,000. Greenland Capital Management LP purchased a new position in McGraw Hill during the third quarter valued at $131,000. GSA Capital Partners LLP bought a new stake in McGraw Hill in the 3rd quarter valued at $147,000. Finally, State of Wyoming purchased a new stake in McGraw Hill in the 3rd quarter worth $202,000.

McGraw Hill Stock Performance

The company's fifty day moving average price is $12.85.

About McGraw Hill

At McGraw Hill, our purpose is to unlock the potential of each learner at every stage of life. Our mission is to support educators, learners and professionals around the world with trusted, high-quality content and digital solutions that use data and learning science to adapt to each student as they progress towards their goals.

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