John Wiley Sons A 2026 Q2 Earnings EPS Surges 13.3% Despite Revenue Decline

John Wiley & Sons A (WLY) delivered mixed fiscal 2026 Q2 results, with revenue declining 1.1% year-over-year but EPS rising sharply. The company reaffirmed full-year adjusted EBITDA margin and EPS guidance while narrowing revenue expectations to low-single-digit growth due to Learning segment headwinds.

Revenue

The Research segment led with $278.51 million in revenue, while the Learning segment contributed $143.24 million. Total revenue fell to $421.75 million, reflecting a 1.1% year-over-year decline driven by challenges in the Learning division.

Earnings/Net Income

John Wiley & Sons A’s EPS surged 13.3% to $0.85, outpacing the $0.75 reported in 2025 Q2. Net income also rose 11.0% to $44.89 million, underscoring improved profitability despite top-line pressures.

Price Action

The stock price of John Wiley & Sons A has tumbled 10.38% during the latest trading day, has dropped 3.86% during the most recent full trading week, and has dropped 7.61% month-to-date.

Post-Earnings Price Action Review

The strategy of buying WLY when earnings beat and holding for 30 days resulted in a significant underperformance, with a strategy return of -25.08% compared to a benchmark return of 85.89%. The strategy had a maximum drawdown of 0.00%, indicating no capital loss during the holding period, but it underperformed the benchmark by a substantial 110.97%. The Sharpe ratio was -0.18, suggesting the risk-adjusted return was negative, and the volatility was high at 31.68%, indicating significant price swings.

CEO Commentary

Matthew Kissner, President, CEO & Employee Director, highlighted Wiley’s Q2 performance marked by “strength and momentum in Research and AI” but “declines in Learning.” He emphasized Research’s 7% growth driven by “demand to publish, read, and license” and AI licensing projects nearing $100 million in two years. Challenges in Learning included “abrupt inventory management changes at Amazon,” soft consumer spending, and enrollment declines in computer science. Strategic priorities focused on “operational excellence,” AI-driven productivity, and expanding AI partnerships, with the CEO stating AI is “an accelerator for our Research core.” He expressed confidence in Research’s “durability and resilience,” citing peer-reviewed content’s critical role in science and corporate R&D, and optimism about AI’s long-term growth potential.

Guidance

Wiley reaffirmed adjusted EBITDA margin guidance of 25.5%–26.5% (up from 24% in 2025), adjusted EPS of $3.90–$4.35 (vs. $3.64 in 2025), and free cash flow of ~$200 million. Revenue growth is now expected in low single digits (down from low-to-mid-single-digit guidance), with Learning declines moderating in H2. AI revenue is projected to exceed 2025’s $40 million. CapEx remains comparable to 2025’s $77 million. Craig Albright noted Q3 growth will be “lighter” due to AI project timing, with Q4 weighted by journal renewals.

Additional News

John Wiley & Sons increased share repurchases by 69% year-to-date to $21 million, reflecting a commitment to returning capital to shareholders. The company also reaffirmed its dividend policy, with a yield of approximately 3.9%. Strategic AI initiatives accelerated, with $6 million in AI revenue recorded in Q2 and year-to-date AI revenue reaching $35 million. Additionally, Wiley’s net debt-to-EBITDA ratio improved to 2.0x from 2.2x, signaling stronger balance sheet health.

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