Wiley Reaffirms Fiscal 2027 Outlook After Emerald Close

The Tip Desk · September 3, 2026 · 3 min read

GAAP revenue was $386 million, down 3% from a year earlier, as Research Publishing rose 12% and Learning fell 19%.

John Wiley & Sons (WLY) closed its first quarter of fiscal 2027 with GAAP revenue of $386 million, down 3% from $397 million a year earlier, after a 1% increase in the immediately preceding quarter. The scholarly publisher said the quarter was in line with expectations and reaffirmed its full-year outlook.

The mix inside that top line was the story. Research revenue grew 4% to $293 million, with Research Publishing up 12%, including $13 million from two months of Emerald Publishing, which Wiley acquired on June 1 for about $450 million in cash, net of cash acquired. Research Solutions fell 30% at constant currency on a prior-year AI licensing comparison of $16 million versus $4 million. Research Adjusted EBITDA rose 9% to $87 million, including a $5 million Emerald contribution, and the segment margin expanded 130 basis points to 29.6%.

Learning moved the other way. Segment revenue fell 19% as reported and 20% at constant currency to $93 million, which the company attributed to a prior-year AI licensing comparison in Academic and Professional and to softness in consumer and corporate spending. Learning Adjusted EBITDA declined 56% at constant currency to $14 million, and the segment margin compressed to 15.1% from 27.4%. First quarter is Wiley’s seasonally lightest period in Academic, the company said.

GAAP operating income fell to $3 million from $31 million, and diluted earnings swung to a loss of $(0.23) a share from $0.22, largely because of $11.0 million of acquisition and integration costs and $16.5 million of restructuring charges. Adjusted EPS fell 10% to $0.44 from $0.49. Adjusted EBITDA declined 4% to $68 million, with the margin slipping to 17.6% from 17.8%.

AI licensing revenue totaled $14 million for the quarter. President and CEO Matthew Kissner said prior-year AI licensing comparisons affected both segments, particularly Learning, and that the company expects improvement over the balance of the year as comparisons normalize and demand in that segment stabilizes. Wiley said it became the only scientific publisher in the U.S. Department of Energy’s Genesis Mission and a founding data partner in CuspAI’s materials foundry, and launched a Spectral Analysis API portfolio.

Emerald brings nearly 500 journals and expands Wiley’s portfolio to roughly 2,500 journals. Corporate expenses on an Adjusted EBITDA basis improved 19%, or $8 million, to $35 million, which the company tied to technology transformation and restructuring.

Net debt-to-EBITDA on a trailing-twelve-month basis rose to 2.7x from 1.9x a year earlier as net debt increased to $1,185 million from $746 million on the Emerald purchase; pro forma leverage including synergies is 2.1x. Free cash flow was a use of $70 million compared with a use of $100 million a year earlier. The dividend was raised for the 33rd consecutive year, and $33 million was allocated to dividends and share repurchases, including $15 million of buybacks.

Wiley is reaffirming fiscal 2027 organic revenue growth of low-to-mid single digits, with Research at mid-single-digit growth, Adjusted EBITDA margin of 26.5% to 27.5%, Adjusted EPS of $4.60 to $5.05, and free cash flow of $205 million. Emerald is projected to add $78 million to revenue over 11 months of the fiscal year, be accretive to Adjusted EPS by about $0.10, and dilute free cash flow by $15 million.