Wiley (NYSE:WLY) reported mixed second-quarter results on Thursday, beating profit expectations but falling short on revenue, which pushed its shares down 2.35% in pre-market trading.
For the quarter ended October 31, the research and education publisher posted adjusted earnings per share of $1.10, topping the consensus estimate of $1.00. Revenue, however, totaled $422 million — below analyst expectations of $425 million and down 1% from the $427 million reported a year earlier.
The revenue miss was largely due to continued weakness in the company’s Learning division, which saw an 11% decline at constant currency. Wiley cited “market-related softness,” including inventory reductions at a major online retailer and weaker consumer and corporate spending. Within Learning, Professional revenue fell 16%, while Academic dropped 8%.
By contrast, Wiley’s Research segment delivered solid results, growing 5% at constant currency thanks to sustained demand for publication services worldwide. The quarter also included a $6 million content licensing deal to support AI model training, providing an additional boost to segment performance.
“We continue to deliver strong performance in Research and accelerating momentum in AI as we capitalize on record research volume and expanding corporate R&D opportunities,” said Matthew Kissner, President and CEO.
Adjusted operating income climbed 14% to $79 million, with margins improving to 18.8% from 16.3% in the prior-year period. While Wiley reaffirmed its full-year outlook for adjusted EBITDA margin, adjusted EPS, and free cash flow, it trimmed its revenue expectations to the low end of its earlier range, now projecting low-single-digit growth.
During the quarter, Wiley repurchased about 553,000 shares at an average price of $38.11, spending $21 million on buybacks and another $19 million on dividends.