McGraw Hill Reports Q2 2027 Results with Shift Toward Digital and Recurring Revenue
McGraw Hill reported second quarter fiscal 2027 revenue of $632.2 million, a 5.5% year-over-year decline, primarily driven by a 9.6% decrease in K-12 revenue due to lower capture rates in specific math markets. Despite the top-line dip, the company demonstrated strength in its digital transition, with recurring revenue growing 3.7% to $839.6 million for the first half of the year and digital revenue increasing by 5.6%. The company is heavily investing in AI integration through partnerships with Microsoft and Anthropic to enhance student engagement via tools like the AI Reader. While enrollment conditions have shifted from expected growth to a flat-to-down 1% trend, management reaffirmed full-year guidance and highlighted significant debt reduction efforts, having paid down approximately $700 million since its IPO.