Graham Holdings Revenue Growth Cools After Two Faster Quarters
Third-quarter sales were $1.33 billion, up 4%, while operating income reached $85.5 million and adjusted net income was $18.77 a share.
Graham Holdings Company (GHC), the Arlington, Virginia media and education conglomerate, reported third-quarter 2026 revenue of $1,326.0 million, up 4% from $1,278.9 million a year earlier. That pace slowed from 7% growth in the second quarter and 6% in the first.
Operating income was $85.5 million, compared with $67.1 million in the third quarter of 2025. Adjusted operating cash flow, a non-GAAP measure, was $121.8 million. The company said revenues, operating results and adjusted operating cash flow increased at television broadcasting, healthcare, manufacturing, automotive and other businesses, partially offset by a decline at education.
Net income attributable to common shares fell 39% to $75.1 million, or $17.60 a share, from $122.9 million, or $27.91 a share. The swing reflected a $15.0 million net loss on marketable equity securities in the quarter, versus an $84.8 million net gain a year earlier. Excluding items the company listed, including that securities loss, net income attributable to common shares was $80.2 million, or $18.77 a share, compared with $62.0 million, or $14.08 a share.
Education remained the only major division with a year-over-year revenue decline. Education revenue fell 14% to $404.3 million, and operating income there fell 20% to $39.3 million. Kaplan international revenue dropped 22% to $230.1 million, with operating income down 40% to $17.3 million. Supplemental education revenue fell 7% to $80.8 million and operating income fell 36% to $9.7 million. Higher education revenue rose 2% to $93.9 million and operating income rose 22% to $17.9 million.
Television broadcasting was the sharpest operating gain. Revenue rose 19% to $125.3 million and operating income rose 81% to $48.5 million. Healthcare revenue rose 25% to $260.3 million, with CSI up 35% to $162.3 million; healthcare operating income rose 11% to $23.2 million. Manufacturing revenue rose 19% to $147.6 million and operating income rose 34% to $9.0 million. Automotive revenue rose 5% to $299.1 million and operating income rose 48% to $9.3 million. Other businesses revenue rose 7% to $89.4 million; that division still posted an operating loss of $21.9 million.
Capital expenditures totaled $39.6 million, compared with $20.2 million a year earlier.
Kaplan entered an agreement in the third quarter to sell Dublin Business School to China Chunlai Education Group Co., Ltd. At September 30, 2026, the company classified DBS assets and liabilities as held for sale. The transaction closed on October 27, 2026. Under the share purchase agreement, Kaplan sold all outstanding shares of Accountancy & Business College (Ireland) Limited, which operates DBS, together with certain intellectual property, for $127.5 million.
At September 30, 2026, borrowings were $853.4 million at an average interest rate of 5.8%, including $186.2 million on a $400 million revolving credit facility. Cash, marketable equity securities and other investments totaled $1,246.2 million, excluding DBS cash classified as held for sale. During the first nine months of 2026, the company purchased 176,529 shares of Class B common stock at a cost of $198.6 million. Remaining authorization stood at 285,953 shares.
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