John Wiley & Sons, Inc. recorded a mixed Q2 2026, with robust growth in Research Publishing and early AI monetization, offset by sustained headwinds in Learning. Revenue of $421.8 million supported a 7% increase in research-related activity (5% YoY ex-currency), while AI licensing contributed meaningfully to earnings as management accelerates its AI growth strategy. The quarter delivered material margin expansion and a resilient balance sheet, yet free cash flow remained negative in the period, highlighting the need for ongoing working-capital discipline and prudent capital allocation. Looking forward, Wiley reaffirmed full-year guidance, underscoring low-single-digit revenue growth, mid-to-high single-digit adjusted EBITDA margins (target 25.5%–26.5%), and roughly $200 million of annual free cash flow, with Q3 expected to be lighter on AI-driven research revenue and Q4 weighted toward renewals and platform-driven growth.
Key takeaway: Wiley benefits from a durable moat in peer-reviewed content and a rapidly expanding AI-enabled ecosystem (Nexus licensing, AI gateway, AWS/Claude collaborations). The company’s strategic AI initiatives are designed to elevate long-term recurring revenue and knowledge-feed offerings for corporate R&D, which could unlock meaningful growth as enterprise demand for AI-augmented research accelerates. The main near-term risk remains Learning, where demand softness and retailer inventory dynamics weighed on results, though management expects stabilization and a gradual recovery in H2.”