John Wiley & Sons Reports Q2 FY 2026 Revenue Decline but Profitability Increase

John Wiley & Sons, Inc. reported its financial results for the second quarter of fiscal year 2026, revealing a slight decline in revenue but an increase in profitability. For the three months ended October 31, 2025, the company generated $421.8 million in revenue, a decrease of 1% compared to the same period last year. However, operating income rose by 14% to $73.0 million, and diluted earnings per share increased to $0.84, up from $0.74 in the prior year. The company attributed the rise in operating income to lower operating and administrative expenses, despite a decrease in revenue.

In terms of segment performance, the Research segment saw a revenue increase of 6% to $278.5 million, driven by growth in Research Publishing and AI license revenue, which reached $6.0 million, up from $4.0 million a year earlier. Conversely, the Learning segment experienced an 11% decline in revenue to $143.2 million, primarily due to decreased print sales and a slowdown in consumer spending. The company noted that the decline in Learning revenue was also impacted by a significant drop in AI-related revenue compared to the previous year.

Wiley's operational metrics showed a decrease in total current assets, which fell to $381.2 million from $439.9 million at the end of April 2025. The company also reported a significant reduction in contract liabilities, which decreased from $462.7 million to $218.8 million, reflecting revenue recognition from journal subscriptions and other agreements. The total liabilities decreased to $1.73 billion, down from $1.94 billion, while shareholders' equity stood at $740.2 million, a slight decline from $752.2 million.

Strategically, Wiley has been focusing on its Global Restructuring Program, which aims to optimize its cost structure and enhance profitability. The company recorded restructuring charges of $6.0 million in the latest quarter, up from $3.6 million in the prior year. The restructuring efforts have included reducing real estate occupancy by approximately 35% and streamlining operations. Looking ahead, Wiley anticipates annualized cost savings of around $115 million from these initiatives, with a significant portion expected to be realized in fiscal year 2026.

In terms of liquidity, Wiley reported cash and cash equivalents of $67.4 million as of October 31, 2025, with approximately 95% of this amount held outside the U.S. The company has a robust credit facility, with $871.7 million in total debt and approximately $423.5 million in unused borrowing capacity. Wiley's management remains optimistic about the company's ability to navigate market challenges and capitalize on growth opportunities in the research and learning sectors.