Key Highlights

  • Diluted EPS of USD 17.60 missed the consensus estimate of USD 18.36 and compared with USD 27.91 a year earlier.
  • Revenue of USD 1.33 billion rose 4% and matched the consensus estimate, led by television and healthcare growth.
  • Television broadcasting Revenue jumped 19% to USD 125.3 million as political Advertising added USD 29.3 million over last year.
  • Education revenue fell 14% to USD 404.3 million, while the Dublin Business School sale closed for USD 127.5 million.

Graham Holdings Company (NYSE:GHC) reported third quarter 2026 Net Income attributable to common shares of USD 75.1 million, or USD 17.60 per diluted share, below a consensus estimate of USD 18.36 and down from USD 27.91 in the third quarter of 2025. Revenue was USD 1,326.0 million, up 4% from USD 1,278.9 million and in line with a consensus estimate of USD 1.33 billion. Operating Income rose to USD 85.5 million from USD 67.1 million. The per share figures are GAAP results, and the prior year quarter included an after-tax gain of USD 63.0 million on marketable Equity securities, while this year a USD 15.0 million pre-tax loss on those securities weighed on earnings.

Segment Results Pull in Different Directions

Television broadcasting operating income climbed 81% to USD 48.5 million on revenue of USD 125.3 million, with political advertising up USD 29.3 million and retransmission revenue down USD 1.4 million. Healthcare revenue rose 25% to USD 260.3 million, led by a 35% increase at CSI to USD 162.3 million, and operating income was USD 23.2 million versus USD 21.0 million. Manufacturing revenue grew 19% to USD 147.6 million and operating income reached USD 9.0 million, helped by Forney and Joyce. Automotive revenue gained 5% to USD 299.1 million, and operating income rose 48% to USD 9.3 million, aided by the Honda of Woodbridge acquisition.

Kaplan was the drag. Education revenue fell 14% to USD 404.3 million and operating income declined to USD 39.3 million from USD 49.1 million. Kaplan International revenue dropped 22% on the sale of KLG and broad declines at Pathways, while Higher Education revenue rose 2% and Supplemental Education fell 7%. Purdue Global enrollments increased 4% over the first nine months.

Portfolio Moves, Capital Returns and Business Outlook Statements

In the third quarter Kaplan agreed to sell Dublin Business School to China Chunlai Education Group, and the transaction closed on October 27, 2026 for USD 127.5 million. The company repurchased 66,058 Class B shares in the quarter at an average of USD 1,171.25, and 285,953 shares remained available under the authorization. Nine month repurchases totaled USD 198.6 million. The company declared dividends of USD 1.88 per share in the quarter and USD 7.52 per share over nine months.

The company anticipates continued revenue growth at CSI for the rest of 2026, while it projects retransmission revenue net of network fees to decline in 2026 as cord cutting reduces cable and satellite subscribers. Cash and cash equivalents were USD 154.3 million against total Debt of USD 853.4 million, and USD 210.1 million of the USD 400 million revolving Credit Facility was undrawn. Non-operating pension income was USD 47.6 million, up from USD 31.0 million.

Items Behind the Next Quarter

Several dated and measurable items frame the coming report. Proceeds of USD 127.5 million from Dublin Business School arrive in the fourth quarter, following the earlier KLG sale on May 1. Television faces a comparison against a quarter that carried USD 29.3 million of added political advertising. CSI revenue growth of 35% and the Pine Drug California pharmacy operations are the pharmacy items to follow, while Kaplan International operating income of USD 17.3 million, down 40%, shows the effect of the Pathways decline. The remaining repurchase authorization of 285,953 shares and the USD 1.88 Dividend declared for the quarter round out the capital items.