John Wiley Sons B 2026 Q2 Earnings EPS Surges 13.3%, Net Income Grows 11%

John Wiley & Sons B reported mixed Q2 2026 results, with revenue declining slightly but earnings per share and net income rising. The company reaffirmed full-year guidance while narrowing its revenue outlook to low single-digit growth due to Learning segment challenges.

Revenue

Total revenue fell 1.1% to $421.75 million in Q2 2026, driven by a 1.1% decline in the Learning segment. The Research segment, however, remained resilient, contributing $278.51 million in revenue, reflecting strong demand for publishing and AI-related projects. Learning segment revenue totaled $143.24 million, though it faced headwinds from retail inventory declines and shifting spending patterns.

Earnings/Net Income

Earnings per share surged 13.3% to $0.85, while net income grew 11.0% to $44.89 million, underscoring improved cost management and margin expansion. The performance highlights the company’s ability to boost profitability despite revenue challenges.

Post-Earnings Price Action Review

The strategy of buying WLYB when earnings beat and holding for 30 days yielded a -1.70% return, significantly underperforming the benchmark’s 85.52%. With a maximum drawdown of 0.00% and a Sharpe ratio of -0.01, the approach revealed high risk and poor risk-adjusted returns, raising questions about the effectiveness of such conservative strategies in volatile markets.

CEO Commentary

Matthew Kissner, President and CEO, emphasized Wiley’s Research segment momentum, driven by global publishing demand and AI content licensing projects, including $35 million in AI model training revenue year-to-date. He highlighted margin expansion via cost reductions and operational efficiency, with strategic priorities focused on AI-driven R&D and a transformative publishing platform.

Guidance

Wiley reaffirmed 2026 full-year Adjusted EBITDA margin (25.5–26.5%), Adjusted EPS ($3.90–$4.35), and Free Cash Flow (~$200M). Revenue guidance was narrowed to low-single-digit growth, reflecting Learning segment challenges such as retail inventory shifts and enrollment declines in key disciplines.

Additional News

John Wiley & Sons B announced a $21 million share repurchase in Q2, a 69% increase compared to the prior year, as part of disciplined capital allocation. The company also acquired the journal Nanophotonics to strengthen its physics portfolio. Management reiterated confidence in AI licensing growth, with $6 million in AI-related revenue booked during the quarter, including a repeat contract with an existing LLM customer.

Earnings/Net Income

The 13.3% EPS increase and 11.0% net income growth underscore Wiley’s focus on cost discipline and Research segment resilience, even as Learning challenges persist. These results position the company to meet its full-year profitability targets.

Price Action

WLYB’s stock price declined 4.18% on the day of the report, with a 10.22% drop over the preceding week and a 12.25% monthly decline, reflecting market skepticism despite strong earnings.

Guidance

The revised revenue outlook reflects Learning segment headwinds, including Amazon’s inventory management shifts and softer consumer spending. However, Research and AI initiatives remain central to Wiley’s long-term growth strategy.