Key Highlights

  • Revenue exceeded the company's expectations in the fiscal second quarter.
  • Adjusted EBITDA was $250.6 million, a 39.6% margin.
  • Digital Revenue growth was highlighted as a key driver.
  • The company said momentum is building toward a growth acceleration in fiscal 2028.

McGraw Hill, Inc. (NYSE:MH), a provider of education solutions for preK-12, higher education and professional learning, reported fiscal second-quarter 2027 results. Revenue exceeded the company's expectations, and adjusted EBITDA reached $250.6 million, a Margin of 39.6%. The release highlights digital revenue growth and advances in agentic artificial intelligence for education, and it says momentum is building toward faster growth in fiscal 2028.

Sector Context

Education publishers sell curriculum, assessments and learning platforms to schools, colleges and professional Training customers. Their revenue follows public funding cycles, adoption schedules for new curriculum, and the shift from printed materials to digital subscriptions. Revenue is often concentrated in certain periods of the year, which can make quarterly comparisons uneven.

The sector is also adapting to artificial intelligence tools that change how content is created and delivered. Companies that can integrate these capabilities into products may gain advantages, though pricing and adoption remain open questions across the market.

Revenue and Digital Growth

The company said revenue beat its own expectations for the quarter and named digital revenue growth as a central driver. Digital products are often sold on subscription or license terms that generate recurring revenue, which makes their growth important for Earnings visibility.

The highlights do not give the total revenue figure or the share of digital revenue, so the mix cannot be measured from the summary alone. The segment tables in the full release would show how the digital share is changing.

Margins and Profitability

Adjusted EBITDA was $250.6 million, at a margin of 39.6%. A margin near 40% is high for an education company, though results can vary with school purchasing cycles.

The company linked the margin result to its execution focus and expectation of margin expansion for the fiscal year. Investors can compare the quarterly margin with full-year expectations when the company updates them.

Working from the disclosed figures, adjusted EBITDA of $250.6 million at a 39.6% margin implies quarterly revenue of roughly $633 million. That calculation is an inference from the margin, not a figure the release states, but it gives a scale for the profit results and for the digital share readers may eventually see in the segment tables.

Key Risks

Education spending depends on government budgets and district priorities, which can change with political and economic conditions. Competition from other publishers and from free or lower-cost digital resources could pressure pricing. Rapid technology changes also require ongoing Investment to keep products current.

What to Watch Ahead

Investors will look for evidence that digital revenue growth continues, for margins to hold near the reported level, and for progress toward the growth acceleration the company expects in fiscal 2028. Updates on full-year guidance and on adoption of AI-enabled products will be useful reference points.