Filing Flows › McGraw Hill (MH) › Q1 FY27
McGraw Hill (MH) Q1 FY27 earnings results (first quarter fiscal 2027)
10-Q filed Aug 13, 2026
McGraw Hill (MH) reported revenue of $550M for the first quarter fiscal 2027 (Q1 FY27), +3% from a year earlier and +19% from the quarter before. Operating margin was 20.8%, net earnings $57.9M (10.5% of revenue).
McGraw Hill, Q1 FY27: revenue $550M (+3% year over year), operating margin 20.8%, net earnings $57.9M, operating cash flow $601K. The chart follows the revenue to costs, profit and cash.
| Q1 FY27 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $550M | +19% | +3% |
| Gross profit | $439M | +13% | +7% |
| Operating profit | $114M | — | +19% |
| Net earnings | $57.9M | — | 115× |
| Operating cash flow | $601K | — | — |
What changed
Revenue was $549.9M in Q1 FY27, up 3% year over year and up 19% from the previous quarter. Digital was the largest line at 64% of revenue. Digital added $28.5M year over year (up 9%), 201% of the total change. Print declined 7%.
Gross margin was 79.9%, up 2.9 points from Q1 FY26. Operating profit was $114.3M, a 20.8% margin (up 2.8 points year over year). Of the extra revenue versus Q1 FY26, 127% reached operating profit, above the 18% margin then. Operating expenses grew 3% against revenue growth of 3%. The fastest-growing cost line was General & admin (+15%). Net earnings were $57.9M, up 11426% year over year. The effective tax rate was 15.5%.
Operating cash flow was $601K, 1% of net earnings. Non-cash charges added back $83.5M of depreciation and amortization and $3.9M of share-based compensation. Working capital and other items used $144.6M. Capital expenditures of $23.9M exceeded it, leaving free cash flow of −$23.3M.
Questions
What was McGraw Hill's revenue in the first quarter fiscal 2027?
McGraw Hill (MH) reported revenue of $550M for the first quarter fiscal 2027 (Q1 FY27), +3% from a year earlier and +19% from the quarter before.
Was McGraw Hill profitable in the first quarter fiscal 2027?
Operating profit was $114M (20.8% of revenue) and net earnings $57.9M.
Source: McGraw Hill 10-Q on SEC EDGAR.