John Wiley Sons B 2026 Q2 Earnings Earnings Surge 13.3% as Net Income Rises 11.0%

John Wiley & Sons B (WLYB) reported fiscal 2026 Q2 results on Dec 05, 2025, with mixed performance. Revenue declined 1.1% year-over-year to $421.75 million, while EPS and net income rose 13.3% and 11.0%, respectively. The company narrowed revenue guidance to low-single-digit growth, reflecting Learning segment challenges, but reaffirmed EBITDA and EPS targets.

Revenue

Revenue totaled $421.75 million in Q2 2026, a 1.1% decline from $426.60 million in the prior year. The Research segment drove performance with $278.51 million in revenue, reflecting strong demand for publishing and subscriptions. The Learning segment contributed $143.24 million, but faced ongoing market headwinds.

Earnings/Net Income

John Wiley & Sons B’s EPS surged 13.3% to $0.85 in Q2 2026, up from $0.75 in the prior year. Net income rose 11.0% to $44.89 million, driven by cost discipline and margin expansion. The earnings growth underscores the company’s ability to offset revenue declines through operational efficiency.

Post-Earnings Price Action Review

The strategy of buying WLYB when earnings beat and holding for 30 days underperformed, returning -1.70% compared to the benchmark’s 85.52%. The approach exhibited a maximum drawdown of 0.00% and a Sharpe ratio of -0.01, highlighting its risk profile. Despite positive earnings, the stock fell 4.18% in the latest trading day, 10.22% for the week, and 12.25% month-to-date, reflecting investor caution.

CEO Commentary

Matthew Kissner, CEO, emphasized robust Research segment performance fueled by global publishing demand and AI licensing projects totaling $35 million year-to-date. He noted 18% lower corporate expenses and 250-basis-point margin expansion. While expressing cautious optimism about Learning segment trends, Kissner outlined strategic priorities: AI-driven R&D, cost optimization, and platform enhancements.

Guidance

Wiley reaffirmed fiscal 2026 Adjusted EBITDA margin guidance of 25.5–26.5% and Adjusted EPS of $3.90–$4.35. Free Cash Flow is projected at ~$200 million. Revenue guidance was narrowed to low-single-digit growth, reflecting Learning segment challenges. The company expects continued Research and AI growth, with margin expansion and cost discipline as key drivers.

Additional News

John Wiley & Sons B announced a $35 million AI licensing project in Q2, expanding its content partnerships with AWS, Anthropic, and Perplexity. The company accelerated share repurchases by 69% to $21 million in the quarter, reflecting disciplined capital allocation. Meanwhile, the Global Restructuring Program is on track to deliver $115 million in annualized cost savings by fiscal 2026, focusing on technology and corporate expenses.

The firm also acquired the journal Nanophotonics to strengthen its physics portfolio, signaling long-term investment in high-growth research areas. Management highlighted resilience in the Research segment, driven by open access growth and high institutional retention, while addressing Learning segment challenges through targeted marketing and digital offerings.

Polished Transitions

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