What Happened?

Shares of academic publishing company John Wiley & Sons (NYSE: WLY) fell 6% in the afternoon session after the company reported its second-quarter fiscal 2026 results and narrowed its full-year revenue guidance, citing weakness in its Learning division. 

Wiley adjusted its revenue forecast to low-single-digit growth due to market challenges. The company's Learning segment revenue fell 11% in the quarter, impacted by inventory adjustments at major retailers and softer consumer spending. Although the Research segment experienced growth, it was not enough to make up for the downturn in Learning. As a result, total sales declined 1.1% compared to the same period in the previous year. The disappointing results and guidance contributed to the stock reaching a new 52-week low.

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What Is The Market Telling Us

Wiley’s shares are not very volatile and have only had 7 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 3 months ago when the stock dropped 4.7% on the news that the company reported a year-over-year revenue decline in its second-quarter 2025 results. The company posted revenue of $396.8 million, down 1.7% from the same period last year, signaling ongoing challenges. While GAAP earnings improved to $0.22 per share compared to a loss of $0.03 in the prior year, investors appeared more focused on the top-line weakness and the company's continued cash burn. Wiley reported a negative free cash flow of $99.9 million for the quarter, raising concerns about its profitability and operational efficiency despite the improvement in net income.

Wiley is down 25.3% since the beginning of the year, and at $32.22 per share, it is trading 31.1% below its 52-week high of $46.73 from March 2025. Investors who bought $1,000 worth of Wiley’s shares 5 years ago would now be looking at an investment worth $880.91.

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