third quarter of 2026
Filed Oct 29, 2026Graham Holdings Company reported third-quarter revenue of $1,326.0 million, up 4%, and operating income of $85.5 million, compared to $67.1 million in the third quarter of 2025.
Third-quarter revenue, operating income and adjusted operating cash flow increased, led by television broadcasting, healthcare, manufacturing, automotive and other businesses. Education declined, while reported net income fell amid a swing from marketable-equity gains in 2025 to losses in 2026.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Operating revenues, three months ended September 30GAAP | $1.33B | – | 4% |
| Operating expenses, three months ended September 30GAAP | $1.22B | – | 3% |
| Depreciation of property, plant and equipment, three months ended September 30GAAP | $18.12M | – | (6)% |
| Amortization of intangible assets, three months ended September 30GAAP | $5.78M | – | (40)% |
| Impairment of intangible and other long-lived assets, three months ended September 30GAAP | — | – | — |
| Operating income, three months ended September 30GAAP | $85.5M | – | 27% |
| Equity in (losses) earnings of affiliates, net, three months ended September 30GAAP | −$3.59M | – | — |
| Interest income, three months ended September 30GAAP | $1.59M | – | 9% |
| Interest expense, three months ended September 30GAAP | −$15.77M | – | (8)% |
| Non-operating pension and postretirement benefit income, net, three months ended September 30GAAP | $47.60M | – | 53% |
| (Loss) gain on marketable equity securities, net, three months ended September 30GAAP | −$15.03M | – | — |
| Other (expense) income, net, three months ended September 30GAAP | −$1.19M | – | – |
| Income before income taxes, three months ended September 30GAAP | $99.14M | – | (46)% |
| Provision for income taxes, three months ended September 30GAAP | $21.9M | – | (61)% |
| Net income, three months ended September 30GAAP | $77.24M | – | (39)% |
| Net income attributable to Graham Holdings Company Common Stockholders, three months ended September 30GAAP | $75.1M | – | (39)% |
| Diluted net income per common share, three months ended September 30GAAP | $17.60 per share | – | (37)% |
| Basic net income per common share, three months ended September 30GAAP | $17.79 per share | – | (37)% |
| Adjusted operating cash flow, three months ended September 30non-GAAP | $121.8M | – | 11% |
| Net income attributable to common shares excluding certain items, three months ended September 30non-GAAP | $80.2M | – | – |
| Diluted income per common share, adjusted, three months ended September 30non-GAAP | $18.77 per share | – | – |
| Capital expenditures, three months ended September 30other | $39.6M | – | – |
| Operating revenues, first nine months ended September 30GAAP | $3.86B | – | 6% |
| Operating income, first nine months ended September 30GAAP | $227M | – | 21% |
| Net income attributable to Graham Holdings Company Common Stockholders, first nine months ended September 30GAAP | $385.3M | – | — |
| Diluted net income per common share, first nine months ended September 30GAAP | $88.92 per share | – | — |
| Adjusted operating cash flow, first nine months ended September 30non-GAAP | $354.5M | – | 15% |
| Net income attributable to common shares excluding certain items, first nine months ended September 30non-GAAP | $238.2M | – | – |
| Diluted income per common share, adjusted, first nine months ended September 30non-GAAP | $54.98 per share | – | – |
| Capital expenditures, first nine months ended September 30other | $80.2M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Education, three months ended September 30Revenue declined. | $404.3M | – | (14)% |
| Television broadcasting, three months ended September 30Revenue increased. | $125.3M | – | 19% |
| Healthcare, three months ended September 30Revenue increased. | $260.3M | – | 25% |
| Manufacturing, three months ended September 30Revenue increased. | $147.6M | – | 19% |
| Automotive, three months ended September 30Revenue increased. | $299.1M | – | 5% |
| Other businesses, three months ended September 30Revenue increased. | $89.44M | – | 7% |
| Education, first nine months ended September 30Revenue declined. | $1.26B | – | (5)% |
| Television broadcasting, first nine months ended September 30Revenue increased. | $346.5M | – | 10% |
| Healthcare, first nine months ended September 30Revenue increased. | $717.2M | – | 23% |
| Manufacturing, first nine months ended September 30Revenue increased. | $405.9M | – | 27% |
| Automotive, first nine months ended September 30Revenue increased. | $868.0M | – | 2% |
| Other businesses, first nine months ended September 30Revenue increased. | $264.2M | – | 3% |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Capital returns
- During the first nine months of 2026, the Company purchased a total of 176,529 shares of its Class B common stock at a cost of $198.6 million.
- At September 30, 2026, there were 4,185,665 shares outstanding.
- The Company has remaining authorization for 285,953 shares as of September 30, 2026.
What drove it
- Third-quarter revenues, operating results and adjusted operating cash flow increased at television broadcasting, healthcare, manufacturing, automotive and other businesses.
- Education partially offset third-quarter increases.
- For the first nine months, revenues and operating results increased at television broadcasting, healthcare, manufacturing, automotive and other businesses, partially offset by a decline at education.
- Kaplan entered into an agreement during the third quarter to sell Dublin Business School, and the transaction closed on October 27, 2026 for $127.5 million.
Concerns
- Education revenue declined 14% in the third quarter and operating income declined 20%.
- Kaplan international revenue declined 22% and operating income declined 40% in the third quarter.
- Reported third-quarter net income attributable to common stockholders declined 39%.
- Third-quarter results included $15.0 million in net losses on marketable equity securities, compared with $84.8 million in net gains in the third quarter of 2025.
- Corporate office operating loss was $(21,916) (in thousands), compared with $(17,670) (in thousands).
What to watch
- The post-closing effects of the October 27, 2026 sale of Dublin Business School for $127.5 million.
- Education trends, including Kaplan international, higher education and supplemental education.
- Whether healthcare revenue growth translates into operating-income growth, as healthcare operating income increased 11% in the third quarter while revenue increased 25%.
- Marketable equity securities gains and losses, which affected reported earnings.
Balance sheet and cash flow
- At September 30, 2026, the Company had $853.4 million in borrowings outstanding at an average interest rate of 5.8%, including $186.2 million outstanding on its $400 million revolving credit facility.
- Cash, marketable equity securities and other investments totaled $1,246.2 million at September 30, 2026, excluding DBS cash classified as held for sale.
- Overall, the Company recognized $15.0 million in net losses on marketable equity securities in the third quarter of 2026, compared to $84.8 million in net gains in the third quarter of 2025.
- Overall, the Company recognized $17.9 million in net gains on marketable equity securities in the first nine months of 2026, compared to $117.0 million in net gains in the first nine months of 2025.
Analysis
Graham Holdings reported broad third-quarter revenue growth, with operating revenues of $1,326.0 million, up 4% from $1,278.9 million. Operating income increased to $85.5 million from $67.1 million, while adjusted operating cash flow increased to $121.8 million from $110.1 million. The same pattern extended across the first nine months, when revenue was $3,864.5 million, operating income was $227.0 million and adjusted operating cash flow was $354.5 million.
Television broadcasting, healthcare, manufacturing, automotive and other businesses all delivered higher third-quarter revenue. Television broadcasting operating income increased 81% to $48.5 million, manufacturing operating income increased 34% to $9.0 million, and automotive operating income increased 48% to $9.3 million. Healthcare revenue increased 25% to $260.3 million, although healthcare operating income increased 11% to $23.2 million.
Education was the principal operating offset. Third-quarter education revenue fell 14% to $404.3 million and operating income declined 20% to $39.3 million. Within education, Kaplan international revenue declined 22% and operating income declined 40%, while supplemental education revenue declined 7% and operating income declined 36%. Higher education was a relative positive, reporting 2% revenue growth and 22% operating-income growth.
Reported earnings were affected by non-operating and investment-related items. Net income attributable to common stockholders was $75.1 million, or $17.60 per diluted share, versus $122.9 million, or $27.91 per diluted share. The company recorded $15.0 million in net losses on marketable equity securities, versus $84.8 million in net gains a year earlier. Excluding specified items, adjusted net income attributable to common shares was $80.2 million, or $18.77 per diluted share, compared with $62.0 million, or $14.08 per diluted share.
Capital allocation included $198.6 million of Class B common-stock repurchases for 176,529 shares during the first nine months. The company had $853.4 million in borrowings and $1,246.2 million of cash, marketable equity securities and other investments at September 30, 2026. Kaplan's sale of Dublin Business School closed on October 27, 2026 for $127.5 million. The release provided no financial guidance.
Not in the filing
stated, not guessed- Forward financial guidance
- Prior guidance for comparison
- Gross margin
- Free cash flow
- Dividend declaration or payment
- Quarterly sequential comparisons
- Named executive quotes
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.