Wiley's Q2 2026 Performance: A Blueprint for Sustainable Margins and AI-Driven Growth

John Wiley & Sons' Q2 2026 earnings report underscores a compelling narrative of strategic reinvention, with the company leveraging AI-driven innovation and disciplined cost management to expand margins despite headwinds in its Learning segment. For investors, the results highlight a business that is pivoting toward high-margin opportunities in research publishing while navigating short-term challenges in its education division.

Segment Performance: Research Thrives, Learning Struggles

Wiley's Research segment delivered robust growth, with revenue rising 6% year-over-year to $279 million, driven by a 7% increase in Research Publishing and AI-related revenue for the quarter. This segment's success is underpinned by strong demand for academic and open-access publishing, as well as the monetization of high-value content through AI licensing. . In contrast, the Learning segment faced an 11% revenue decline to $143 million, attributed to inventory adjustments at online retailers and weaker consumer and corporate spending. While the Learning segment's struggles are a drag on top-line growth, Wiley's management has emphasized that these challenges are temporary and manageable through operational discipline.

AI as a Strategic Lever

The most striking development in Wiley's Q2 results is the acceleration of its AI initiatives. The company executed a $6 million content licensing project for AI model training during the quarter, with year-to-date AI-related revenue of $35 million realized. These projects are transforming Wiley's vast repository of academic and professional content into high-margin revenue streams, aligning with broader industry trends in AI-driven knowledge monetization. As CEO Matthew Kissner noted, Wiley is positioning itself as a "knowledge-to-AI" platform, leveraging its intellectual property to fuel growth in both traditional and emerging markets.

Margin Expansion Through Cost Discipline

Wiley's margin expansion in Q2 reflects a combination of strategic cost-cutting and operational efficiency. Corporate expenses fell 18% at constant currency, driven by restructuring efforts and tighter expense management. This discipline contributed to an adjusted operating margin of 18.8% and an adjusted EBITDA margin of 27.3%, up 240 basis points from the prior year. The company also returned value to shareholders through a 69% increase in share repurchases to $21 million for the quarter according to financial reports. With a net debt-to-EBITDA ratio of 2.0x (down from 2.2x in the prior year), Wiley is in a strong position to continue its capital allocation strategy while reducing leverage further by year-end 2026 according to financial analysts.

Long-Term Outlook: Balancing Growth and Stability

Looking ahead, Wiley has reaffirmed its full-year 2026 guidance, narrowing revenue growth expectations to low-single-digit figures due to Learning segment pressures but maintaining a target adjusted EBITDA margin of 25.5%–26.5%. The company's long-term strategy hinges on scaling AI licensing and Research Publishing, with management projecting that these initiatives will remain key drivers of margin expansion and free cash flow through 2027–2028. Analysts have noted that Wiley's focus on AI and operational efficiency positions it to outperform peers in the research publishing sector, particularly as demand for AI training data continues to rise.

Conclusion

Wiley's Q2 2026 results demonstrate a company in transition, balancing near-term challenges with a clear-eyed focus on sustainable growth. By capitalizing on AI-driven monetization and maintaining strict cost controls, Wiley is not only stabilizing its margins but also building a foundation for long-term value creation. For investors, the key takeaway is that Wiley's strategic pivot toward high-margin research and AI initiatives-coupled with its disciplined capital allocation-positions it as a compelling play in the evolving knowledge economy.