John Wiley & Sons, Inc. (WLYB) released its Q2 FY26 financial results on December 4, 2025, reporting a quarter that ended September 30, 2025. The company posted total revenue of $421.75 million, a 1.1% decline from $426.60 million in the same period a year earlier, but still beating the consensus estimate of $416.40 million by $5.35 million. The revenue dip was largely driven by a 11% decline in the Learning segment, offset by a 5–7% increase in the Research segment, which benefited from strong demand for academic publishing and AI‑licensed content.
The earnings beat expectations on both earnings and revenue. Adjusted earnings per share came in at $1.10, surpassing the consensus estimate of $0.97 by $0.13, while reported EPS of $0.85 exceeded the $0.78 estimate by $0.07. The beat was driven by disciplined cost control and a favorable mix shift toward higher‑margin Research and AI licensing, which helped offset the weaker Learning segment. Management attributed the margin expansion to a 250‑basis‑point lift in adjusted operating margin to 18.8% and an 8% rise in adjusted EBITDA, both supported by lower variable costs and higher pricing power in the Research division.
Guidance for the remainder of FY26 was revised to reflect a more cautious outlook. Wiley reaffirmed its adjusted EBITDA margin target of 25.5%–26.5% and adjusted EPS guidance of $3.90–$4.35, but narrowed full‑year revenue guidance to low‑single‑digit growth, citing ongoing headwinds in the Learning segment such as Amazon inventory adjustments and softer consumer spending. The company also increased its share‑repurchase program by 69% to $21 million, signaling confidence in its cash‑flow generation and a commitment to returning value to shareholders.
Management highlighted the continued momentum in AI initiatives, noting that the company is close to $100 million in AI training revenue from licensing projects and has expanded strategic partnerships with AWS, Anthropic, and Mistral AI. CEO Matthew Kissner emphasized that the Research segment remains a “long‑term tailwind and a growth engine,” while acknowledging that the Learning segment’s decline is a short‑term challenge that the company is actively addressing. CFO Craig Albright underscored the 8% growth in adjusted EBITDA and the 220‑basis‑point improvement in Research EBITDA margin to 33.5%.
Market reaction to the results was muted, with investors focusing on the narrowed revenue guidance. Despite the earnings and revenue beats, the company’s outlook for top‑line growth was viewed as a concern, leading to a subdued market response. The guidance signals that while profitability remains strong, the company anticipates continued pressure on revenue growth in the near term, particularly in the Learning segment.
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