McGraw Hill Achieves Stellar Q4 and Full Year Results as Education Pioneer

Morningstar investors were abuzz with excitement yesterday as McGraw Hill, Inc. revealed a scintillating fourth quarter and full-year performance that solidified the company's position at the forefront of education technology.

With Simon Allen, Chair of the Board of Directors, taking the reins to kick off the earnings call, it was clear from the get-go that McGraw Hill meant business. "Fiscal year 2026 demonstrated the strength of our business, our strategy, and the enduring importance of education," he stated with conviction.

Allen's confidence was echoed by Philip Moyer, President and CEO-elect, who took to the mic to elaborate on the company's growth prospects. Having spent his first 120 days in office meeting customers, teams, industry stakeholders, and investors, Moyer was resolute in his assertion that McGraw Hill is uniquely positioned to lead the next generation of education.

"What is also clear to me," he underscored, "is that McGraw Hill has a great financial foundation. My focus for shareholders is to maintain our profit profile, reduce our debt, and accelerate our growth in fiscal year 2027 and beyond."

One glance at the company's impressive Q4 and full-year numbers tells the tale of an education powerhouse on the rise. Revenue exceeded IPO expectations, adjusted EBITDA saw a remarkable leap, and recurring revenue grew by a substantial 6%, representing over 73% of total revenue.

In K through 12, McGraw Hill's capture rate outperformed market expectations despite the expected cyclical decline in the sector. In higher education, net dollar retention hit an impressive 114%, with customer satisfaction reaching an all-time high.

But what truly sets McGraw Hill apart is its commitment to innovation. The company launched a record number of curriculum offerings and AI learning tools while beefing up its adjusted EBITDA margin by nearly 80 basis points year-over-year.

In a market marked by rapid AI advancements and global uncertainty, McGraw Hill's relentless focus on harnessing technology to drive learning outcomes has yielded stunning results. The company now boasts eight AI-powered tools serving more than 7.5 million users – with three additional launches planned for the current fiscal year.