Wiley's Q1 2026 Earnings: AI Licensing Momentum Fuels $3.90-$4.35 EPS Target for FY26

John Wiley & Sons has set a target of $3.90-$4.35 EPS for FY26, driven by momentum in AI licensing and strategic partnerships. The company's president and CEO, Matthew Kissner, emphasized the growth opportunities opened up by their early work in AI across various businesses and in corporate R&D.

John Wiley & Sons, Inc. (WLY) has set an EPS target of $3.90 to $4.35 for FY26, driven by momentum in AI licensing and strategic partnerships, as announced during their Q1 2026 earnings call [1]. The company's president and CEO, Matthew Kissner, highlighted the growth opportunities opened up by their early work in AI across various businesses and in the corporate R&D market.

Kissner emphasized the company's AI licensing project, which involves a foundational large language model customer and a strategic partnership with Anthropic to accelerate AI in scholarly research. The AI licensing revenue reached $29 million in the quarter, up from $17 million in the prior year period [1]. Additionally, the company's new CFO, Craig Albright, stated that adjusted revenue grew by 1% and adjusted EPS rose by 2%, while adjusted EBITDA was down by 3% [1].

Albright also reaffirmed the full year guidance, stating that revenue growth would be in the low to mid-single digits, with an adjusted EBITDA margin of 25.5% to 26.5%, and an adjusted EPS of $3.90 to $4.35 [1]. Free cash flow was expected to be approximately $200 million, with CapEx comparable to last year's total of $77 million [1].

The quarter showcased a 25% increase in research submissions and a 13% increase in output, with continued double-digit growth in Gold Open Access and the Advanced Science journal. Research Solutions grew by 44%, driven by the Nexus AI project [1]. AI licensing revenue highlighted the growing impact of AI partnerships, with AI revenue expected to vary quarterly but underlying demand remaining robust [1].

Management maintained a confident tone in prepared remarks, repeatedly underscoring operational discipline and growth momentum. During the Q&A session, management was forthcoming, addressing concerns directly and providing detail on both strategy and financial effects [1].

References:
[1] https://seekingalpha.com/news/4492506-wiley-outlines-3_90-4_35-eps-target-for-fy26-as-ai-licensing-momentum-and-strategic