Academic publishing company John Wiley & Sons (NYSE:WLY) reported its third-quarter results for calendar year 2025, surpassing Wall Street’s revenue expectations despite a year-on-year sales decline of 1.1% to $421.8 million. The company’s non-GAAP profit reached $1.10 per share, exceeding analysts’ consensus estimates by 13.4%.
Wiley’s Q3 financial performance showcased strong momentum in its research business, countered by ongoing challenges in its learning segment. Management attributed the revenue increase to significant growth in research publishing and heightened demand for AI content licensing. CEO Matthew Kissner noted “another AI licensing project for an existing LLM customer,” while emphasizing that research volumes remain at “record levels worldwide.” However, he described the learning segment’s performance as “unusual,” pointing to external factors, including Amazon’s inventory management and fluctuations in consumer spending.
The results reflect Wiley’s dual focus, as the company navigates both opportunities and challenges. In research, article submissions surged by 28%, with an increase in open access publishing contributing to the positive outlook. International markets, particularly in China and India, played a significant role, with Brazil also highlighted for forming extensive agreements.
Amid these developments, Wiley’s learning division continues to experience headwinds, driven by an 8% drop in computer science enrollments and softer consumer demand. According to management, these pressures are largely cyclical, though some trends, especially relating to academic performance, may present longer-term challenges. CFO Craig Albright emphasized that while the company is focused on cost discipline and margin expansion, it remains vigilant regarding trends in higher education enrollment and corporate training.
Looking forward, management has reiterated its full-year Adjusted EPS guidance of $4.13 at the midpoint, driven by optimism around research growth and expanding AI opportunities, though tempered by challenges in the learning segment. Wiley’s commitment to operational efficiency through technology transformation and AI-driven productivity improvements is expected to enhance its operating margin, which has risen to 18.7%, up from 15.4% in the same quarter last year.
Wiley’s AI initiatives are noteworthy, as the company approaches $100 million in AI training revenue, fueled by rapid growth in AI licensing agreements. The recently launched AI gateway platform, developed in collaboration with partners such as Anthropic and AWS, aims to boost recurring corporate subscriptions and deepen client engagement.
Despite these advancements, the learning segment’s recovery remains uncertain. Management anticipates that improvements in retailer inventory management may help alleviate some pressure, but a quick rebound is not guaranteed due to persistent softness in professional demand and enrollment trends. The outlook for this segment is closely tied to broader macroeconomic conditions and educational trends.
Wiley’s stock is currently trading at $34.95, a decline from $37.89 prior to the earnings release. The company is actively pursuing a disciplined capital allocation strategy, which includes accelerating share repurchases and acquiring key assets in high-growth areas such as optics and photonics. This strategic approach aims to balance shareholder returns with reinvestment in promising growth sectors.
As Wiley charts its course ahead, its management expects future performance to be influenced by resilient demand in research, ongoing progress in AI monetization, and effective operational strategies. The company’s performance metrics in research publishing, such as high submission rates and successful partnerships with AI developers, are essential for maintaining recurring revenue streams.
As the market looks ahead, key indicators will include the pace of AI licensing deals, the stabilization of the learning segment, and continued growth in research submissions. The ongoing execution of operational efficiency measures and progress in international markets will also serve as critical signposts for Wiley’s sustained performance.
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