Wolters Kluwer (WKL) Q1 2026 TU earnings summary

Executive summary

• First-quarter 2026 revenues grew 4% in constant currencies and 5% organically, with recurring revenues up 7% organically and cloud software revenues up 14% organically.

• Adjusted operating profit rose 11% in constant currencies; adjusted free cash flow increased 15% in constant currencies, aided by favorable working capital timing.

• Full-year 2026 guidance reiterated, expecting organic growth, margin improvement, and high single-digit EPS growth.

• AI innovation and cloud adoption accelerated, with notable customer uptake in Health and Tax & Accounting segments.

Financial highlights

• Recurring revenues comprised 85% of total, up 7% organically; non-recurring revenues (15% of total) declined 5%.

• Print revenues (4% of total) reduced organic growth by 130 basis points.

• Net debt was €3,788 million as of March 31, 2026, with net-debt-to-EBITDA at 1.9x.

• €137 million spent on share repurchases in Q1 2026; €33 million on acquisitions.

Outlook and guidance

• 2026 adjusted operating profit margin expected at approximately 28.0% (2025: 27.5%).

• Adjusted free cash flow guidance: €1,300–€1,350 million; ROIC: 18–19%.

• High single-digit growth in diluted adjusted EPS anticipated.

• Product development spending to rise to 12–13% of revenues in 2026.

• Division outlook: Health and Tax & Accounting organic growth in line with prior year; Legal & Regulatory and Financial & Corporate Compliance to exceed prior year; Corporate Performance & ESG growth to be ahead but with longer sales cycles.