John Wiley Sons A 2026 Q2 Earnings Strong EPS Growth Amid Revenue Decline

John Wiley & Sons A (WLY) reported mixed Q2 2026 results, beating revenue estimates despite a year-over-year decline in total revenue. The company reaffirmed full-year guidance for adjusted EBITDA margin and free cash flow but narrowed revenue outlook to low single-digit growth due to Learning segment headwinds.

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. The Research segment contributed $278.51 million, while the Learning segment accounted for $143.24 million. This performance reflects strong growth in Research Publishing driven by AI licensing projects and global demand, offset by challenges in the Learning segment linked to Amazon inventory adjustments and enrollment declines in computer science.

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 EPS performance indicates robust 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 revenues beat expectations and holding for 30 days resulted in a -24.84% return, significantly underperforming the benchmark return of 50.97%. The strategy's Sharpe ratio was -0.24, indicating substantial risk aversion, while the maximum drawdown was 0%, suggesting the strategy avoided losses during the backtest period.

CEO Commentary

Matthew Kissner, President, CEO & Employee Director, highlighted strong growth in Research Publishing (7% revenue growth) driven by AI licensing projects and global demand, offset by Learning segment declines due to Amazon inventory adjustments, soft consumer spending, and enrollment challenges in computer science. He emphasized AI as an "accelerator for our Research core," with $35M in AI licensing year-to-date and strategic partnerships with AWS, Anthropic, and Mistral AI. Strategic priorities include expanding AI-driven platforms (e.g., AI Gateway, Research Exchange), geographic expansion in China, India, and Brazil, and operational efficiency. Leadership expressed optimism about Research’s resilience and AI’s long-term tailwind, while acknowledging Learning’s cyclical headwinds.

Guidance

Craig Albright, Executive VP, reaffirmed Wiley’s fiscal 2026 outlook for adjusted EBITDA margin, adjusted EPS, and free cash flow. The company narrowed its revenue guidance to low-single-digit growth due to market challenges in the Learning segment. Adjusted EBITDA margin is projected to reach 25.5% to 26.5%, with adjusted EPS ranging from $3.90 to $4.35 and free cash flow expected to approximate $200 million.

Additional News

John Wiley & Sons increased share repurchases by 69% year-to-date to $21 million, returning value to shareholders through buybacks and dividends. The company also announced $35 million in AI licensing revenue year-to-date, underscoring its strategic expansion into AI markets. Additionally, Wiley reaffirmed its commitment to operational efficiency, with adjusted operating margins improving by 250 basis points to 18.8% in Q2 2026. These developments highlight the company’s focus on AI-driven growth and capital allocation discipline amid sector-specific challenges.