John Wiley Sons B 2026 Q2 Earnings EPS Rises 13.3% Despite Revenue Decline

John Wiley & Sons B (WLYB) reported fiscal 2026 Q2 earnings on Dec 4, 2025, with revenue falling slightly by 1.1% year-over-year. The company reaffirmed its full-year 2026 guidance for EBITDA margins and free cash flow but narrowed revenue growth expectations to low single digits, citing Learning segment challenges.

Revenue

Total revenue for John Wiley & Sons B declined to $421.75 million in 2026 Q2, a 1.1% drop from $426.60 million in the prior-year period. The Research segment, a key driver of performance, generated $278.51 million in revenue, reflecting sustained demand for publishing and subscriptions. Meanwhile, the Learning segment contributed $143.24 million, though it faced ongoing market softness and enrollment declines in disciplines like computer science.

Earnings/Net Income

The company’s earnings showed strong growth, with EPS rising 13.3% to $0.85 in 2026 Q2 from $0.75 in 2025 Q2. Net income also increased by 11.0% to $44.89 million, driven by margin expansion and cost reductions. This performance underscores Wiley’s ability to maintain profitability despite revenue headwinds.

Price Action

The stock price of John Wiley & Sons B experienced mixed short-term movements, dropping 5.82% during the latest trading day but gaining 0.77% over the past week. Month-to-date, the stock edged down 0.60%.

Post-Earnings Price Action Review

The strategy of buying WLYB when revenues beat and holding for 30 days resulted in poor performance, with a return of -1.70%, significantly underperforming the benchmark return of 85.89%. The strategy’s Sharpe ratio of -0.01 indicated high risk, despite relatively low volatility at 34.14%. Maximum drawdown was recorded at 0.00%.

CEO Commentary

Matthew Kissner, President and CEO, highlighted Wiley’s strong Research growth fueled by global demand for publishing and AI-driven content licensing. He emphasized 18% reduced corporate expenses and margin expansion initiatives, while acknowledging Learning segment challenges due to market softness. Kissner expressed confidence in leveraging operational efficiency and AI opportunities for sustained growth.

Guidance

Wiley reaffirmed its full-year 2026 Adjusted EBITDA margin guidance of 25.5-26.5% and Adjusted EPS of $3.90-$4.35. Free Cash Flow is expected to reach ~$200M. Revenue guidance was narrowed to low-single-digit growth, reflecting Learning segment headwinds. The company anticipates AI revenue to exceed last year’s $40 million and expects debt leverage to decline materially in 2026.

Additional News

1. AI Momentum: Wiley accelerated AI licensing projects, securing $100 million in AI training revenue in under two years and expanding partnerships with AWS, Anthropic, and Mistral AI.

2. Cost Discipline: The company reduced corporate expenses by 18% and increased share repurchases by 69% in Q2, allocating $21 million to buybacks.

3. Debt Reduction: Wiley used $120 million in divestiture proceeds to reduce debt, aiming for a material decline in leverage by year-end.

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Guidance Reiteration

Wiley’s leadership reiterated confidence in its Research segment’s resilience, citing high institutional retention and growth in open-access publishing. CFO Craig Albright noted a 250-basis-point margin expansion in Q2, with adjusted EBITDA up 8% year-over-year. The company remains focused on strategic capital allocation and operational efficiency to sustain long-term growth.