GHC · Graham Holdings Company

Graham Holdings Company reported solid first-quarter results for 2026, with revenue increasing 6% to $1.236 billion and operating income rising 22% to $57.8 million. The growth was broad-based, led by television broadcasting (up 39% in operating income), manufacturing (up 46%), and education (up 4% in revenue, though operating income declined 19% due to a $19.0 million impairment charge related to the planned sale of Kaplan Languages Group). Healthcare revenue grew 20%, but operating income fell 5% due to higher costs. Automotive revenue declined 5%, and other businesses saw a 3% revenue drop. On a non-GAAP basis, adjusted operating cash flow increased 28% to $112.9 million, reflecting strong cash generation across most segments. Net income attributable to common shares was $29.1 million ($6.62 per diluted share), compared to $23.9 million ($5.45) in the prior year. Excluding certain items (primarily mark-to-market losses on equity securities and impairment charges), adjusted net income was $73.9 million ($16.79 per share), up from $51.0 million ($11.64). The company also completed the acquisition of Covenant Home Health in March 2026 and continued its share repurchase program, buying 32,190 shares for $34.1 million during the quarter. Overall, the results demonstrate operational improvements in key segments, though headwinds in automotive and healthcare margins, along with the KLG divestiture, temper the outlook.