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

John Wiley & Sons A (WLY) reported fiscal 2026 Q2 earnings on Dec 4, 2025, delivering a 13.3% EPS increase and 11% net income growth, though revenue dipped 1.1%. The company reaffirmed adjusted EBITDA margin guidance (25.5%–26.5%) and narrowed revenue growth expectations to low single digits.

Revenue

The total revenue of John Wiley & Sons A decreased by 1.1% to $421.75 million in 2026 Q2, down from $426.60 million in 2025 Q2. Research Publishing revenue amounted to $278.51 million, while the Learning segment contributed $143.24 million. The decline in total revenue was primarily attributed to challenges in the Learning division, including Amazon inventory adjustments and softer consumer spending.

Earnings/Net Income

John Wiley & Sons A's EPS rose 13.3% to $0.85 in 2026 Q2 from $0.75 in 2025 Q2, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $44.89 million in 2026 Q2, marking 11.0% growth from $40.46 million in 2025 Q2. The earnings performance underscored effective cost management and operational efficiency.

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 mixed business performance: strong 7% growth in Research Publishing driven by AI licensing and global demand, offset by Learning segment declines due to Amazon inventory adjustments, softer consumer spending, and enrollment challenges in computer science. Strategic priorities include accelerating AI partnerships (e.g., AWS, Anthropic) and expanding open-access publishing, with a focus on corporate R&D opportunities. Operational excellence initiatives, including cost reductions and AI-driven productivity, underpinned 250-basis-point margin expansion. Leadership outlook remains cautiously optimistic, emphasizing resilience in Research, confidence in AI’s long-term tailwinds, and disciplined capital allocation (e.g., 69% increase in share repurchases). Challenges in Learning are viewed as cyclical, with moderation expected in the second half.

Guidance

The company reaffirmed adjusted EBITDA margin guidance of 25.5%–26.5% and adjusted EPS of $3.90–$4.35, with revenue growth projected in the low single digits (down from prior mid-single-digit range). Free cash flow is expected at ~$200M, supported by EBITDA growth and lower interest costs. AI revenue is anticipated to exceed last year’s $40M. CapEx remains comparable to 2025’s $77M. Q3 revenue growth is weighted to Q4 due to journal renewal timing and corporate R&D pipeline conversions. Net debt-to-EBITDA is expected to decline materially by fiscal 2026.

Additional News

John Wiley & Sons A announced a 69% increase in share repurchases during Q2, allocating $21 million to return capital to shareholders. CEO Matthew Kissner emphasized strategic AI partnerships, including collaborations with AWS, Anthropic, and Mistral AI, to drive long-term growth. Additionally, the company narrowed its full-year revenue guidance to low single-digit growth, citing ongoing Learning segment headwinds but maintaining confidence in Research Publishing’s resilience.

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