John Wiley & Sons (WLY) Q4 2026 earnings summary

Executive summary

• Fiscal 2026 marked a breakout year with record margins, exceptional cash flow growth, and momentum in Research and AI/data analytics, supported by strategic AI partnerships and the largest acquisition since 2007.

• Two reinforcing growth engines—Research (mid-single-digit growth, recurring revenue) and AI/Data Analytics (rapidly expanding, $49M revenue, up 23%).

• Acquisition of Emerald Publishing for $450M–$452M expands scale in research and proprietary content for AI, expected to be accretive to EPS and free cash flow.

• Disciplined capital allocation with record $174M returned to shareholders, increased dividend for 32nd consecutive year, and ongoing margin expansion.

• Leadership team strengthened with new Chief AI and Data Analytics Officer and EVP/GM for Research.

Financial highlights

• Fiscal 2026 adjusted revenue was $1,677M (up 1% with FX); adjusted EBITDA up 10% to $440M (margin 26.2%); adjusted EPS up 15% to $4.19.

• Free cash flow up 55% to $195M; operating cash flow grew 29% to $261M; free cash flow conversion at 44%.

• Q4 2026 adjusted revenue $448M; Q4 adjusted EBITDA $149M (margin 33.2%).

• Net debt-to-EBITDA improved to 1.4x; pro forma leverage post-Emerald at 2.1x, within target range.

• Dividend raised for 32nd consecutive year; share repurchases more than doubled to $100M.

Outlook and guidance

• Fiscal 2027 organic revenue expected to grow low to mid-single digits; Research at mid-single digits.

• Adjusted EBITDA margin guided to 26.5%-27.5%; adjusted EPS of $4.60-$5.05 (including $0.10 from Emerald); free cash flow expected at $205M.

• Emerald expected to add $78M revenue in FY27 (11 months), accretive to adjusted EPS by $0.10, but dilutive to free cash flow by $15M in year one.

• AI recurring revenue projected to scale 2-3x from $8M in FY26, with total AI revenue above $50M.

• Margin expansion to continue, driven by tech transformation, cost reduction, and AI productivity gains.