John Wiley & Sons (WLY) stock plummeted 5.43% in pre-market trading on Thursday, following the release of its fiscal first-quarter results. Despite beating revenue expectations, the academic publishing firm faced challenges that seem to have disappointed investors.

The company reported Q1 revenue of $396.8 million, surpassing analyst estimates of $375 million. However, this still represented a 1.7% year-over-year decline. Adjusted earnings per share came in at $0.49, slightly missing the lone analyst forecast of $0.50. While the research segment showed growth, driven by AI licensing projects and open access expansion, the learning segment experienced a decline due to reduced AI licensing revenue and market softness in the professional sector.

Despite the mixed results, John Wiley & Sons reaffirmed its fiscal 2026 outlook, projecting low to mid-single digit adjusted revenue growth and an adjusted EBITDA margin of 25.5% to 26.5%. The company also anticipates adjusted EPS between $3.90 and $4.35 for the fiscal year. However, the market's negative reaction suggests that investors may be concerned about the company's ability to navigate challenges in its learning segment and the overall competitive landscape in academic publishing.