Wiley Inc. reported its second‑quarter 2026 financial results, posting GAAP revenue of $422 million—down 1% year‑over‑year from $427 million in Q2 2025. The decline is largely attributable to an 11% drop in the Learning segment, driven by inventory challenges at online retailers and weaker consumer and corporate spending, while the Research segment grew 6% thanks to strong demand for academic and professional titles and expanding AI‑related licensing deals.
Operating income rose to $73 million, a 14% increase from $64 million in the prior year, reflecting a 250‑basis‑point expansion of the adjusted operating margin to 18.8%. The margin lift is driven by higher mix in high‑margin Research and AI contracts, disciplined cost control under the company’s multi‑year restructuring, and the removal of non‑core assets through divestitures. Adjusted earnings per share reached $1.10, beating the consensus range of $0.97–$1.00 by $0.10, a 10% beat that underscores the effectiveness of the cost‑control program and the growing contribution of AI‑enabled products.
Management highlighted the continued acceleration of its AI strategy, noting that “operational excellence and margin expansion are a way of life for us as we continuously optimize our cost structure, drive investment and expense discipline, and advance our transformative publishing platform.” The CEO emphasized that the company is capitalizing on record research volume and expanding corporate R&D opportunities, while also investing in content licensing projects for large‑language‑model training and other AI applications.
Looking ahead, Wiley narrowed its revenue guidance to the lower end of the $416.4 million–$425 million range, signaling caution about the Learning segment’s trajectory and broader macro‑economic uncertainty. The company maintained its adjusted operating income and free‑cash‑flow targets, indicating confidence that margin expansion will continue to offset revenue softness. Investors remain wary of the Learning decline, but the company’s AI and Research momentum provide a tailwind that could drive future growth.
Investors reacted cautiously to the earnings, with concerns focused on the revenue miss and the persistent weakness in the Learning segment, despite the company’s strong margin performance and AI‑driven revenue growth.
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