Graham Holdings revenue rises 4% to $1,326.0 million in the third quarter
Key Facts
Graham Holdings reported revenue of $1,326.0 million in the third quarter of 2026, up 4% from $1,278.9 million in the same period of 2025. Operating income rose to $85.5 million from $67.1 million a year earlier, according to the results statement the company filed with its quarterly report to the U.S. Securities and Exchange Commission on the same day. By contrast, net income attributable to common shareholders fell to $75.1 million from $122.9 million. Earnings per share declined to $17.60 from $27.91 in the third quarter of 2025. The results reflect growth in revenue and operations alongside a clear decline in net earnings.
Revenue came in below analysts’ estimates, while adjusted earnings per share beat expectations, according to Investing.com. Adjusted earnings per share were $18.77, versus an estimate of $17.46, while revenue in the report was $1.32 billion, compared with expectations of $1.34 billion. This adjusted measure differs from the diluted net income per share of $17.60 reported by the company in its results statement. Based on the precisely reported revenue, annual sales rose 4%, but the result fell short of the analyst consensus cited in the report. The company’s shares closed at $1,170.09 on October 28, after closing at $1,186.71 the previous day, according to EL7 data.
Adjusted operating cash flow, a non-GAAP measure, was $121.8 million in the third quarter, compared with $110.1 million in the same period of 2025. The measure therefore rose alongside operating income, despite the decline in net income attributable to shareholders. The figures reflect different measures of performance: operating income measures the result of operations, net income shows what accrued to common shareholders, and adjusted cash flow measures cash generated by operations under the company’s non-GAAP definition. The statement did not provide a specific explanation in the available figures for the gap between the improvement in some operating measures and the decline in net income. Distinguishing between these measures is therefore essential when reading the quarter’s results.
By segment, healthcare revenue rose 25% to $260.3 million from $208.4 million in the third quarter of 2025. Television broadcasting revenue also increased 19% to $125.3 million, compared with $105.1 million a year earlier. Manufacturing revenue rose 19% to $147.6 million from $124.3 million. The company said revenue and operating results also improved in its automotive and other businesses, alongside broadcasting, healthcare and manufacturing. These areas helped support overall revenue growth during the quarter, according to the company’s statement.
By contrast, education segment revenue fell 14% to $404.3 million from $472.7 million in the same period last year. The company said growth in revenue and operating results in other segments partly offset the decline. The divergence between education and the segments that recorded growth shows that Graham Holdings’ portfolio did not move in one direction during the quarter. Education was the largest by value among the segments listed in the revenue data, despite its year-over-year decline. The results highlight the effect of differing segment performance on the company’s overall results, with education continuing to weigh on growth generated by other businesses.
In the first nine months of 2026, revenue rose to $3,864.5 million, up 6% from $3,660.5 million in the same period of 2025. On the financial position, outstanding debt was $853.4 million on September 30, while total cash, marketable securities and other investments reached $1,246.2 million. This total excludes Dublin Business School cash classified as held for sale. The company also repurchased 176,529 Class B shares during the first nine months at a cost of $198.6 million. It had authorization to repurchase 285,953 shares as of September 30.
In a development after the quarter ended, Kaplan completed the sale on October 27 of Accountancy & Business College (Ireland) Limited, which operates Dublin Business School, to China Chunlai Education Group for $127.5 million. The agreement covered all outstanding shares of the company and certain intellectual property, according to the results statement. The deal closed after the quarter ended, on October 27, while the company classified the school’s cash as held-for-sale assets when presenting its financial position on September 30. The sale is a development related to Kaplan’s education business, whose quarterly revenue declined 14% year over year. GHC shares closed at $1,170.09 on October 28, down 2.78% over three months but up 11.53% over 12 months through October 29, according to Investing.com.