Blueprints its AI progress and roadmap

研报英文原文证据摘录

Blueprints its AI progress and roadmap

Macquarie Equity Research

11 June 2026

Consumer Services

McGraw Hill United States

Steve Adam

Key Points Koenig Bojanowski

• 4QFY26 total revenue exceeded consensus by $22M thanks to higher-

education, supported by market share-gains and favorable pricing. Erwin

• Initial FY27 guidance reflected a slower-than-expected CA math Wei

adoption cycle, with total revenue expected to grow +1-3% Y/Y.

• We're encouraged by MH's progress and roadmap in applying AI to help MH US Outperform

educators and students to achieve better learning outcomes. Price (at 11 Jun 2026) USD12.36

12-month target USD18.00

12-month TSR (%) 45.6

• 4Q revenue of $464M beat consensus of $442M, primarily due to Market Cap (USD) (m) 2,361

outperformance in higher-ed, which now approaches 31% market 30-day avg turnover (USD) (m) 5.6

share (per Management Practice Inc.). It saw favorable pricing and

Investment Fundamentals enrollment trends, particularly in business and science disciplines. MH's

Year end 31 Mar 2026A 2027E 2028E 2029E

evergreen content platform continues to be a major differentiator, now Revenue (m) 2,103 2,146 2,278 2,419

representing 68% of higher-ed revenue. K-12 results were slightly above EBITDA (m) 744.3 767.5 831.3 895.8

consensus due to stronger capture rates in key adoption markets. 4Q EBITDA growth (%) 2.4 3.1 8.3 7.8

gross and EBITDA margins both expanded about half a point Y/Y. EBIT (m) 605.3 640.1 696.2 752.4

EBIT growth (%) 0.4 5.8 8.8 8.1

Reported profit (m) 35.3 193.4 277.9 330.1• Initial FY27 guidance bracketed consensus (see p. 2) and reflected a

slower-than-expected CA math adoption cycle, with some large districts Adjusted profit (m) 375.5 386.6 432.7 485.7

EPS adj [$] 2.0 2.0 2.3 2.5