Wiley's Q3 2025 Earnings Call: Contradictions in Research Growth, AI Revenue, and Cost Structure

These are the key contradictions discussed in John Wiley & Sons, Inc.'s latest 2025 Q3 earnings call, specifically including: Research segment growth expectations, AI revenue attribution, cost structure comparison to competitors, revenue exposure to U.S. institutions and medical libraries, and AI integration and impact:



Revenue Growth and AI Integration:
- Wiley reported an increase in Research revenue by 5% for Q3, with AI licensing contributing significantly.
- This growth was driven by an expanded AI licensing project with an existing technology customer and increased demand for AI-specific content.

Operating and Margins Improvement:
- Wiley's operating margin rose by 280 basis points to 14.2%, with an adjusted EBITDA margin improvement of 23.2%.
- Margin expansion was achieved through strategic cost management efforts and operational efficiencies.

Strong Global R&D Investment:
- Global R&D spend remains strong, with projections for 2025 similar to the 8% growth in 2024.
- This trend supports Wiley's research publishing output and demand for its content.

Journal Subscription and Renewal Success:
- Wiley completed nearly 80% of its calendar 2025 journal subscription and renewal season, showing encouraging growth trends.
- This reflects strong demand for Wiley's content and subscription models.