John Wiley Sons A 2026 Q2 Earnings Beats Expectations with 11% Net Income Growth

John Wiley & Sons A (WLY) delivered mixed results in Q2 2026, surpassing earnings estimates while revenue fell slightly short. The company reaffirmed full-year guidance for adjusted EBITDA margins and free cash flow but narrowed revenue projections to low single-digit growth due to Learning segment challenges.

Revenue

Total revenue declined 1.1% year-over-year to $421.75 million, with the Research segment driving growth at $278.51 million, while the Learning segment contributed $143.24 million. The revenue decline was primarily attributed to Amazon inventory adjustments, soft consumer spending, and enrollment challenges in computer science.

Earnings/Net Income

Earnings per share (EPS) rose 13.3% to $0.85, reflecting improved profitability and cost management. Net income increased 11.0% to $44.89 million, underscoring the company’s focus on operational efficiency and AI-driven revenue streams.

Price Action

The stock price of WLY declined 10.38% on the latest trading day, with further drops of 3.86% weekly and 7.61% month-to-date, reflecting investor caution amid revenue underperformance.

Post-Earnings Price Action Review

The strategy of buying WLY after a positive earnings report and holding for 30 days underperformed significantly, with a -25.08% return versus an 85.89% benchmark. Despite a maximum drawdown of 0.00%, the strategy lagged by 110.97%, compounded by a negative Sharpe ratio of -0.18 and high volatility of 31.68%.

CEO Commentary

Matthew Kissner, CEO, emphasized AI as a growth accelerator, with $35 million in AI licensing revenue year-to-date and partnerships with AWS, Anthropic, and Mistral AI. Strategic priorities include expanding AI platforms, geographic expansion in China, India, and Brazil, and operational cost reductions. The Learning segment’s challenges are expected to moderate in 2026 as inventory dynamics stabilize.

Guidance

WLY reaffirmed adjusted EBITDA margin guidance of 25.5%-26.5%, adjusted EPS of $3.90-$4.35, and free cash flow of ~$200 million. Revenue growth is projected at low single digits, with AI revenue expected to exceed last year’s $40 million.

Additional News

John Wiley & Sons increased share repurchases by 69% in H1 2026, returning $73 million to shareholders via buybacks and dividends. The company expanded AI partnerships, including collaborations with AWS, Anthropic, and Mistral AI, and advanced AI-driven platforms like AI Gateway. Guidance for 2026 was narrowed to low single-digit revenue growth due to Learning segment headwinds, with Q3 growth potentially muted by AI project timing and Q4 benefiting from journal renewals.