Graham Holdings Q3 2026: TV Broadcasting Drives EPS Beat Despite Revenue Miss

Graham Holdings posted adjusted EPS of $18.77 for the third quarter of 2026, clearing consensus, while revenue came in fractionally below estimates, missing expectations. The beat came from television broadcasting profitability.

Television broadcasting operating income surged 81%, margin expansion wide enough to carry the quarter on its own. Healthcare added to the strength, with CSI revenue climbing 35% and total healthcare revenue rising 25%.

Net income attributable to common stockholders fell to $75.1 million from $122.9 million a year earlier, driven almost entirely by a swing in marketable equity securities from gains to losses. Operating income rose 27% year over year.

The one genuine soft spot was Kaplan, whose total revenue fell 14%, with the international division down 22%. Kaplan Higher Education still grew revenue 2%, and the quarter included an agreement to sell Dublin Business School, a deal that closed October 27. Adjusted operating cash flow rose 11%, so the underlying business generated more cash than the investment losses suggest.

Graham Holdings also repurchased 176,529 Class B shares in the first nine months of 2026, a meaningful return of capital for a company with a small share count. Capital expenditures roughly doubled year over year, so the company is reinvesting while it buys back stock. EPS has stayed ahead of consensus for several quarters.