John Wiley & Sons (WLY) Q3 2026 earnings summary

Executive summary

• Q3 revenue reached $410 million, up 1% year-over-year, with operating income up 21% and diluted EPS at $0.56 versus a loss last year.

• Adjusted results at constant currency: revenue flat, adjusted operating income up 22%, adjusted EBITDA up 12%, and adjusted EPS up 19%.

• AI and data services generated $7 million in Q3 and $42 million year-to-date, with new partnerships and recurring revenue agreements.

• Operational excellence initiatives, including cost reductions and tech transformation, expanded margins and cash flow.

• $126 million returned to shareholders via repurchases and dividends in nine months, a record high.

Financial highlights

• Q3 GAAP revenue: $410 million (+1% YoY); operating income: $63 million (+21% YoY); diluted EPS: $0.56 (vs. -$0.43 YoY).

• Adjusted EBITDA: $105 million (+12% YoY), margin 25.7% (+250 bps); adjusted EPS: $0.97 (+19% YoY).

• Net debt-to-EBITDA ratio at 1.7, down from 2.0 a year ago.

• Operating cash flow YTD: $103 million (up $51 million YoY); free cash flow YTD: $56 million (vs. -$1 million prior year).

• $70 million in share repurchases year-to-date; $126 million returned to shareholders in nine months, up 37% YoY.

Outlook and guidance

• Fiscal 2026 guidance: low single-digit adjusted revenue growth, adjusted EBITDA margin 25.5%-26.5%, adjusted EPS $3.90-$4.35, free cash flow ~$200 million.

• Guidance reaffirmed for revenue and free cash flow; expecting high end of range for adjusted EBITDA margin and EPS.

• Fiscal 2027 outlook highlights continued research growth, AI momentum, operational excellence, and margin expansion.

• Annualized cost savings of ~$125 million expected from restructuring, with $110 million to be realized in FY26.

• Management expects operating cash flow, credit facilities, and available debt to meet liquidity needs for the next 12 months.