John Wiley & Sons, Inc. (NYSE:WLY) shares fell 3.5% after the company reported first-quarter revenue and adjusted earnings below analyst expectations while reaffirming its fiscal 2027 earnings guidance.
Adjusted earnings per share were $0.44, compared with the consensus estimate of $0.46.
Revenue declined 3% year over year to $386 million from $397 million and was approximately 5% below the analyst estimate of $404.8 million.
Wiley Reaffirms Fiscal 2027 Earnings Guidance
The company maintained its full-year fiscal 2027 adjusted earnings per share guidance of $4.60 to $5.05.
The midpoint of the range is approximately $4.83, compared with the analyst consensus estimate of $4.80.
Wiley said quarterly revenue was affected by a $29 million comparison with AI licensing revenue in the prior-year period and market-related softness in its Learning segment. This was partially offset by growth in Research Publishing.
“We delivered the quarter we planned for, and the momentum between Research and AI keeps building,” said Matthew Kissner, President and CEO. “Prior year AI licensing comparisons affected both segments this quarter, particularly Learning, and we expect improvement over the balance of the year as comparisons normalize and demand in that segment stabilizes.”
Research Revenue Increases to $293 Million
Research segment revenue increased 4% to $293 million, supported by a 12% increase in Research Publishing.
The Research Publishing performance included $13 million from two months of ownership of Emerald Publishing, as well as growth in gold open access and AI licensing.
Research Solutions revenue declined 30%, reflecting a comparison with prior-year AI licensing revenue. AI licensing revenue in the segment was $4 million in the current quarter compared with $16 million a year earlier.
Research adjusted EBITDA increased 9% to $87 million, while the segment’s adjusted EBITDA margin expanded by 130 basis points to 29.6%.
Learning Revenue Declines 20%
Learning segment revenue decreased 20% to $93 million.
Wiley said the result reflected comparisons with $8 million of prior-year AI licensing revenue in Academic and $5 million in Professional, together with lower consumer and corporate spending.
Learning adjusted EBITDA declined 56% to $14 million.
Emerald Acquisition Contributes to Research Publishing
Wiley completed its acquisition of Emerald Publishing on June 1 for approximately $450 million.
The company’s net debt-to-EBITDA ratio was 2.7x at the end of the quarter, compared with 1.9x in the prior-year period.
Free cash flow was a use of $70 million during the quarter, compared with a use of $100 million in the corresponding period a year earlier.