McGraw Hill (MH) Stock Surges Nearly 19% After Hours - Here's Why
McGraw Hill Inc. (NYSE:MH) shares rose 18.72% to $14.65 in after-hours trading on Wednesday after the company reported fiscal third-quarter 2026 results and updated its full-year guidance.
Strong Q3 Performance Drives Momentum
McGraw Hill reported revenue of $434.2 million for the quarter ended Dec. 31, 2025, up 4.2% from the same period last year. Higher Education revenue rose 24% to $225.4 million, while K-12 revenue fell 14.6% to $128.2 million.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) reached $135.9 million, with a margin of 31.3%, up about 100 basis points.
The generally accepted accounting principles net loss narrowed to $20.2 million from $52.9 million in the prior-year period.
McGraw Hill also said it has accelerated debt paydown with $200 million in term loan prepayments during the quarter.
In the second quarter of fiscal 2026, McGraw Hill reported revenue of $669.2 million and an adjusted EBITDA margin of 42.8%.
Philip Moyer was named president and CEO effective Feb. 9, succeeding Simon Allen, who will continue as board chair.
Guidance Raised On Digital Strength
McGraw Hill also raised its fiscal 2026 revenue guidance to $2.067–$2.087 billion, up from $2.031–$2.061 billion, and increased its adjusted EBITDA guidance to $729–$739 million, from $702–$722 million.
The company's AI Reader tool logged 16 million interactions in the third quarter.
Trading Metrics, Technical Analysis
The Relative Strength Index (RSI) of MH stands at 31.91.
The company has a market capitalization of $2.36 billion, with a 52-week high of $18 and a 52-week low of $10.70.
Over the past 12 months, the stock has fallen 27.41%.
The stock is positioned about 22.5% above its 52-week low, suggesting it is trading closer to the lower end of its annual range.
The Ohio-based company's long-term trend and weak position indicate that any potential recovery would require clear confirmation before investors make significant moves.
Price Action: MH closed on Wednesday at $12.34, down 5.08%, according to Benzinga Pro data.
Benzinga's Edge Stock Rankings indicate that MH has a negative price trend across all time frames.
Photo Courtesy: Eric Glenn on Shutterstock.com
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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