John Wiley Sons A 2025 Q4 Earnings Strong Performance with Net Income Soaring 169.5%

John Wiley & Sons A (WLY) reported its fiscal 2025 Q4 earnings on June 17th, 2025. The company exceeded analyst expectations with impressive earnings results. Revenue slightly missed consensus estimates, but net income showed a substantial increase, underscoring the firm's profitability improvements. Wiley revised its guidance upward for fiscal 2026, indicating confidence in continued growth and profitability. The new adjusted EBITDA margin outlook suggests robust financial health moving forward.

Revenue

The total revenue of John Wiley & Sons A decreased by 5.5% to $442.58 million in 2025 Q4, down from $468.46 million in 2024 Q4.

Earnings/Net Income

John Wiley & Sons A's EPS rose 176.1% to $1.27 in 2025 Q4 from $0.46 in 2024 Q4, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $68.09 million in 2025 Q4, marking 169.5% growth from $25.27 million in 2024 Q4. This indicates strong EPS performance for the quarter.

Post-Earnings Price Action Review

The strategy of buying WLY when revenues beat expectations and holding for 30 days resulted in an underwhelming performance. This approach yielded a significant negative return of -30.06%, contrasting sharply with the benchmark return of 32.46%. The strategy also produced a negative excess return of -62.51% and had a compound annual growth rate (CAGR) of -9.05%. Its Sharpe ratio stood at -0.33, highlighting unfavorable risk-adjusted returns. Moreover, the strategy faced a maximum drawdown of -38.34% and experienced a volatility of 27.77%, indicating considerable risks throughout the investment period.

CEO Commentary

Matthew Kissner, President and CEO, noted that Wiley has made significant progress in becoming a more profitable company, achieving revenue growth and margin improvement across segments. He emphasized that market demand remains robust, driven by global R&D spending, and that Wiley's core capabilities in AI licensing and data analytics position it well for growth. The CEO highlighted strong performance in research and learning, with substantial gains in recurring revenue models and notable advancements in Open Access publishing. Kissner expressed optimism about the future, citing a strong pipeline of submissions and a commitment to improving margins and cash flow as key strategic priorities.

Guidance

Wiley expects revenue growth in the low to mid-single digits for fiscal 2026, considering the prior year's AI licensing revenue impact. The company raised its adjusted EBITDA margin outlook to a range of 25.5% to 26.5% and anticipates adjusted EPS between $3.90 and $4.35, up from $3.64 in fiscal 2025. Free cash flow is projected to reach approximately $200 million, with capital expenditures expected to be comparable to the previous year's total of $77 million.

Additional News

In recent developments, John Wiley & Sons has announced an exciting collaboration with Amazon Web Services (AWS) aimed at integrating scientific content into life sciences AI agents. This partnership underscores Wiley’s commitment to leveraging AI technologies to enhance research capabilities. Additionally, Wiley launched Worksmart, an advanced step of its Everything DiSC behavioral assessment, which aims to improve team collaboration through scientifically validated insights. On the dividend front, Wiley declared a quarterly dividend, reflecting its strong financial position and commitment to returning value to shareholders. These strategic initiatives highlight Wiley's focus on innovation and growth in its core segments.