John Wiley Sons B 2026 Q2 Earnings EPS Surges 13.3% Despite Revenue Dip

John Wiley & Sons B (WLYB) reported fiscal 2026 Q2 earnings on Dec 4, 2025, with revenue declining 1.1% year-over-year but EPS rising 13.3% to $0.85, outpacing expectations. The company narrowed full-year revenue guidance to low-single-digit growth amid Learning segment challenges, while reaffirming Adjusted EBITDA and EPS targets.

Revenue

The Research segment drove growth with $278.51 million in revenue, while the Learning segment reported $143.24 million, contributing to the total revenue decline to $421.75 million. The 1.1% year-over-year contraction was primarily attributed to the Learning division’s struggles, including soft consumer spending and enrollment declines in specific disciplines.

Earnings/Net Income

John Wiley & Sons B’s net income surged 11.0% to $44.89 million, reflecting disciplined cost management and margin expansion. The 13.3% EPS increase underscores the company’s ability to offset revenue declines through operational efficiency.

Post-Earnings Price Action Review

The strategy of buying WLYB when revenues beat and holding for 30 days resulted in poor performance. The strategy had a return of -1.70%, significantly underperforming the benchmark return of 85.89%. With a maximum drawdown of 0.00% and a Sharpe ratio of -0.01, the strategy also indicated a high level of risk, although the volatility was relatively low at 34.14%.

CEO Commentary

Matthew Kissner, President and CEO, emphasized robust Research segment performance driven by global demand for publishing and AI content licensing. He highlighted a $6 million AI model training project and a 18% reduction in corporate expenses, alongside a 69% increase in share repurchases year-to-date.

Guidance

Wiley narrowed full-year 2026 revenue growth guidance to low single digits due to Learning segment headwinds but reaffirmed Adjusted EBITDA margin (25.5%–26.5%), Adjusted EPS ($3.90–$4.35), and Free Cash Flow (~$200M) targets. The company remains optimistic about Research and AI momentum, with Q2 Research revenue up 6% and a 33.5% EBITDA margin.

Additional News

1. AI Licensing Momentum: Wiley executed an $6 million AI licensing project in Q2, bringing total AI training revenue to near $100 million in under two years. Strategic partnerships with AWS, Anthropic, and Perplexity were expanded, with Mistral AI added during the quarter.

2. Cost Discipline: The company reduced adjusted operating expenses by 18% (constant currency), contributing to a 250-basis-point margin expansion to 18.8%.

3. Share Repurchases: Share buybacks increased 69% year-to-date to $21 million, reflecting a commitment to returns to shareholders, alongside a 3.9% dividend yield.