John Wiley & Sons Inc Class A (NYSE:WLY) stock rose 4% (As on June 18, 11:34:51 AM UTC-4, Source: Google Finance) after the company reported better-than-expected fourth quarter results and provided an optimistic outlook for fiscal 2026. The company’s Research segment, which includes its scientific journal publishing business, saw revenue rise 4% year-over-year to $280.7 million. This is driven by solid growth in recurring revenue publishing models (calendar year 2025 journal renewals) and open access offsetting continued softness in backfiles, archives, and other ancillary products. Meanwhile, the Learning segment revenue declined 5% to $161.9 million, impacted by lower AI licensing revenue compared to the prior year quarter. Academic growth excluding AI licensing was driven by strong demand for inclusive access and digital courseware. Professional performance excluding AI licensing was impacted by retail channel softness. AI licensing generated $29 million in learning revenue compared to $23 million in the prior year, driven by demand for academic and professional backlisted content. After the year closed, Wiley received $120 million in cash proceeds related to the University Services divestiture, with the total outstanding note paid in full.
WLY in the fourth quarter of FY25 has reported the adjusted earnings per share of $1.37, beating the analysts’ estimates for the adjusted earnings per share of $1.31. The company had reported the adjusted revenue of $443 million in the fourth quarter of FY25, beating the analysts’ estimates for revenue of $434.9 million. Adjusted Operating Income +15% with margin up 260bps.
Additionally, Net Debt-to-EBITDA Ratio was 1.8 compared to 1.7 in the year-ago period. Net Cash provided by Operating Activities was $203 million compared to $208 million primarily due to spend on cloud-based solutions related to targeted enterprise modernization work. Free Cash Flow was up 10% to $126 million primarily driven by lower capex. Fiscal 2025 capex was $77 million vs. $93 million in prior year
Looking ahead, Wiley provided fiscal 2026 guidance, expecting EPS of $2.78-$3.64, versus the consensus of $3.55. John Wiley & Sons, Inc. sees FY2026 revenue of $1.62-1.66 billion, versus the consensus of $1.67 billion.
Wiley also reaffirmed its fiscal 2026 targets, including expanding its adjusted EBITDA margin to a range of 25.5% to 26.5%. The company reaffirmed the free cash flow target of $200 million, up from $114 million in fiscal 2024.