John Wiley & Sons (NYSE:WLY) executives said the company delivered record margins and sharply higher cash flow in fiscal 2026, while positioning its research publishing assets as a foundation for growth in artificial intelligence and data analytics.
President and CEO Matthew Kissner called fiscal 2026 Wiley’s “breakout year,” citing record margins, “exceptional cash flow growth,” expanded AI partnerships and the company’s recently announced acquisition of Emerald Publishing. Kissner said Wiley’s strategy is centered on two reinforcing growth engines: research publishing and AI and data analytics.
Margins and Cash Flow Reach Record Levels
For the full year, Wiley reported adjusted revenue that was flat year over year, or up 1% including currency impact, compared with its prior outlook for low-single-digit growth. Management said learning-related headwinds were the primary reason revenue trailed expectations.
Research remained the company’s strongest segment, with output up 11% and revenue up 4%. Wiley said article submissions rose 25%, compared with industry output growth of 6% to 8%.
Adjusted EBITDA margin increased 220 basis points to 26.2%, while adjusted operating margin rose 260 basis points to 17.7%. Kissner said both were all-time highs in the company’s reporting history. Adjusted EPS grew 15%.
Free cash flow rose 55% to $195 million, helped by improved operating performance and lower capital expenditures. CFO Craig Albright said free cash flow was moderated by late journal renewal signings that shifted some cash collection from the fourth quarter into the first quarter of fiscal 2027.
Wiley returned $174 million to shareholders during the year, including $100 million in share repurchases. Kissner said the company also raised its dividend for the 32nd consecutive year. Net leverage ended the year at 1.4 times, and management said pro forma leverage following the Emerald acquisition was about 2.1 times, within Wiley’s long-term target range of 1.5 to 2.5 times.
Research Publishing Momentum Continues
Kissner said Wiley’s research business is expected to continue growing at a mid-single-digit pace, supported by growth in submissions, journal output, society partnerships and the company’s advanced journal portfolio.
The company said its Advanced Portfolio now generates $70 million in revenue and is growing at double-digit rates. Kissner also highlighted Wiley’s signing of the American Society of Mechanical Engineers, which had self-published for nearly 150 years before choosing Wiley as a publishing partner. He also noted a renewal with the American Cancer Society, now in its 30th year with Wiley.
Wiley’s Research Exchange platform, designed to modernize publishing workflows, also signed its first external publisher client, Liverpool University Press. Kissner said Wiley sees a “meaningful market” for migrating additional smaller publishers onto the platform.
Emerald Acquisition Expands Social Sciences Portfolio
Wiley executives devoted significant attention to the recently announced acquisition of Emerald Publishing, which the company acquired for roughly $450 million, or about 7 times adjusted EBITDA on a synergized basis. Albright later referred to the transaction as a $452 million all-cash deal.
Emerald brings nearly 500 journals, thousands of book titles and case studies, and about 500,000 backfile assets. Management said more than 90% of Emerald’s $85 million in revenue is recurring, with customer retention above 99%.
Kissner said the deal strengthens Wiley’s position in social sciences, including economics, business, finance and related fields. He also said Emerald generates only 15% of its revenue from North America, while North America represents about 40% of global social sciences research spending, creating a potential growth opportunity for Wiley.
Wiley expects $30 million of cost synergies by year three, with meaningful savings in year two. Management said Emerald is expected to be modestly accretive to adjusted EPS in year one and accretive to free cash flow in year two.
AI Revenue Scales, With More Recurring Revenue Expected
Kissner said total AI revenue grew from $23 million in fiscal 2024 to $49 million in fiscal 2026, with management expecting more than $50 million in fiscal 2027. The recurring portion of AI revenue increased from roughly $1 million in fiscal 2025 to $8 million in fiscal 2026, with a path to two to three times that amount in fiscal 2027.
Wiley said it now has 19 corporate customers for AI subscription knowledge feeds, up from 10 in the prior quarter. Those customers include seven of the top 10 global pharmaceutical companies, according to management. The company also serves four large language model developers for training, most of them repeat customers.
Kissner identified three organic growth vectors for Wiley’s AI and data analytics business:
- Database solutions built on proprietary data sets, including clinical outcome assessments;
- Applied research intelligence platforms for corporate research and development workflows;
- Audience monetization through analytics and advertising technology tied to Wiley’s audiences and data assets.
The company’s clinical outcome assessments business grew to $11 million in fiscal 2026, up 68% from $6.5 million in fiscal 2025. Kissner described COAs as one example of “hidden gems” in Wiley’s portfolio that are becoming more valuable in AI-enabled scientific and clinical workflows.
Wiley also highlighted AI-related partnerships with AWS, Anthropic, IQVIA, OpenEvidence and Microsoft. Kissner said Wiley signed a five-year agreement with OpenEvidence for research at the point of care and took a small equity position in the company. Wiley also partnered with Microsoft to integrate trusted medical research into Microsoft Dragon Copilot.
Fiscal 2027 Outlook Calls for Growth and Further Margin Expansion
For fiscal 2027, Wiley expects organic revenue to grow in the low- to mid-single-digit range, with research growing at a mid-single-digit pace. The organic revenue outlook excludes about $78 million of anticipated Emerald revenue contribution, though Emerald is included in other guidance metrics.
The company guided for adjusted EBITDA margin of 26.5% to 27.5%, compared with 26.2% in fiscal 2026. Adjusted EPS is expected to range from $4.60 to $5.05, up from $4.19, including an estimated $0.10 contribution from Emerald.
Free cash flow is expected to reach $205 million, up from $195 million. Albright said the outlook includes $15 million of first-year Emerald dilution, $15 million of higher capital expenditures, restructuring costs that are expected to moderate over time and higher cash taxes.
During the question-and-answer session, Albright said Wiley remains focused on organic investment, disciplined M&A, portfolio optimization and shareholder returns. He said the company continues to view its shares as undervalued and remains interested in returning excess cash to shareholders through dividends and buybacks, while also maintaining balance sheet flexibility after the Emerald acquisition.
About John Wiley & Sons (NYSE:WLY)
John Wiley & Sons, Inc is a global publishing and educational services company founded in 1807 and headquartered in Hoboken, New Jersey. The company operates through two primary segments: Research & Publishing and Education. Through these segments, Wiley produces a wide range of scholarly journals, books, reference works and digital products for academic, scientific, technical and medical markets, as well as professional development and higher education learning resources.
In its Research & Publishing segment, Wiley publishes thousands of peer-reviewed journals and maintains the Wiley Online Library, a leading platform for scientific and scholarly content.
