WILEY (JOHN) & SONS-CLASS A (NYSE:WLY) Reports Q1 FY2026 Revenue Beat and Mixed Earnings

WILEY (JOHN) & SONS-CLASS A (NYSE:WLY) reported first-quarter fiscal 2026 results that showed mixed performance relative to analyst expectations, with revenue exceeding forecasts while adjusted earnings per share came in slightly below estimates. The market reaction has been cautiously positive, with pre-market trading indicating modest gains following the announcement.

Earnings and Revenue Performance

The company posted adjusted earnings per share (EPS) of $0.49 for the quarter ended July 31, 2025, which fell short of the $0.505 consensus estimate among analysts. However, revenue performance proved stronger than anticipated:

• Reported revenue: $396.8 million
• Analyst revenue estimate: $378.75 million
• Revenue outperformance: approximately 4.8% above expectations

This revenue beat was primarily driven by strong performance in the Research segment, which saw 5% constant currency growth fueled by artificial intelligence licensing projects and open access expansion.

Segment Performance and Strategic Developments

The company's results highlighted several important strategic developments:

• Research segment revenue reached $282 million, representing 6% reported growth
• AI licensing revenue surged to $16 million compared to $1 million in the prior year period
• Article submissions grew by 25% with output increasing 13%, indicating strong future publishing pipeline
• The company executed a landmark AI licensing project with a large technology company and announced a strategic partnership with Anthropic

The Learning segment experienced some softness, with revenue declining 7% as reported, largely due to comparisons with prior-year AI licensing revenue and market-related softness in Professional learning.

Capital Allocation and Balance Sheet

Wiley demonstrated continued commitment to shareholder returns:

• Increased dividend for the 32nd consecutive year
• Share repurchases totaled $14 million for the quarter
• Board approved a new $250 million share repurchase authorization, representing a 25% increase over previous authorizations
• Net debt-to-EBITDA ratio improved to 1.9 from 2.0 in the year-ago period

Outlook and Market Implications

Management reaffirmed their full-year fiscal 2026 outlook, projecting:

• Low to mid-single digit adjusted revenue growth
• Adjusted EBITDA margin between 25.5% to 26.5%
• Adjusted EPS range of $3.90 to $4.35
• Free cash flow of approximately $200 million

This outlook appears generally aligned with analyst expectations for the full year, providing confidence in the company's ability to maintain its growth trajectory despite the slight EPS miss in the first quarter.

Market Reaction and Valuation Considerations

The market's initially positive reaction suggests investors are focusing on the revenue beat and maintained guidance rather than the slight EPS miss. The pre-market gain of approximately 0.58% indicates cautious optimism about the company's positioning in the growing AI and research content markets.

The company's strategic focus on AI licensing and partnerships positions it well in the evolving knowledge services landscape, though investors will be watching for improved execution in the Learning segment and continued cost management to enhance profitability.

For more detailed earnings information and future estimates, readers can review additional data at WLY Earnings & Estimates.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Readers should conduct their own research and consult with a qualified financial advisor before making investment decisions.