Shares of John Wiley & Sons (NYSE: WLY) surged 12.25% in Tuesday's trading session following the release of the company's fourth-quarter fiscal 2025 results and upbeat guidance for fiscal 2026. The educational publishing and research company reported better-than-expected earnings and raised its outlook, driving investor optimism.

Wiley reported adjusted earnings per share of $1.37 for the fourth quarter, significantly beating the analyst consensus estimate of $1.27. This represents a 13.22% increase from $1.21 per share in the same period last year. The company's Q4 revenue came in at $442.58 million, also surpassing the analyst estimate of $434.90 million, despite a 5.52% year-over-year decrease due to divested businesses.

The company's strong performance was driven by several factors. Wiley's Research segment showed particular strength, with Q4 revenue growing 4% as reported and 3% at constant currency. This growth was attributed to solid performance in recurring revenue publishing models and open access. Additionally, Wiley achieved significant profit margin expansion, with its adjusted operating margin improving by 260 basis points in the fourth quarter. The company also reported $40 million in AI licensing revenue for fiscal 2025, up from $23 million in the previous year, highlighting its progress in leveraging AI technologies.

Looking ahead, Wiley raised its adjusted EBITDA margin target for fiscal 2026 to a range of 25.5% to 26.5%, citing anticipated cost savings, efficiency gains, and revenue growth. The company also provided an optimistic outlook for fiscal 2026, expecting adjusted EPS in the range of $3.90 to $4.35, which exceeded the FactSet estimate of $3.80. This positive guidance, combined with the strong Q4 results and margin improvements, has fueled investor confidence and contributed to the significant stock price surge.