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

John Wiley & Sons A (WLY) reported mixed Q2 2026 results, with earnings per share (EPS) exceeding estimates but revenue falling short. The company reaffirmed adjusted EBITDA margin and free cash flow guidance while narrowing revenue expectations to low single-digit growth due to Learning segment challenges.

Revenue

The Research segment generated $278.51 million in revenue, while the Learning segment contributed $143.24 million. Total revenue for the quarter amounted to $421.75 million, reflecting a 1.1% decline from the previous year. This follows a 7% year-over-year growth in Research Publishing driven by AI licensing and open access, offset by Learning’s struggles tied to Amazon inventory adjustments and soft consumer demand.

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 rose 11.0% to $44.89 million, underscoring improved profitability. The earnings beat and net income growth highlight improved profitability despite the revenue decline.

Price Action

The stock price of John Wiley & Sons A has dropped 7.16% during the latest trading day, tumbled 10.89% during the most recent full trading week, and tumbled 14.51% 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 total return of -11.95% compared to the benchmark return of 84.52%. The strategy had a maximum drawdown of 0.00%, indicating no capital loss during the holding period, but it underperformed the benchmark with a Sharpe ratio of -0.08 and a CAGR of -2.55%.

CEO Commentary

Matthew Kissner emphasized Research’s “unique durability” amid AI-driven licensing growth and global demand, while acknowledging Learning’s macro-related challenges. Strategic priorities include expanding the Research Exchange platform and AI Gateway, alongside cost discipline and reinvestment in digital offerings.

Guidance

The company reaffirmed adjusted EBITDA margin guidance of 25.5–26.5%, adjusted EPS of $3.90–$4.35, and free cash flow of ~$200M. Revenue growth is projected at low single digits, with Learning declines expected to moderate in the second half. AI licensing revenue is guided to exceed $40M by a “moderate” margin.

Additional News

John Wiley & Sons A announced a 69% increase in share repurchases to $21 million during Q2, reflecting disciplined capital allocation. The company also acquired the journal Nanophotonics, enhancing its physics portfolio. CEO Matthew Kissner reiterated confidence in Research’s long-term resilience, citing institutional retention and AI-driven productivity as key drivers.