John Wiley & Sons (WLY) stock surged 12.9% in pre-market trading on Thursday, March 6, 2025, following the company's impressive fiscal third quarter 2025 earnings results.

The academic publishing company's revenue increased 1.2% year-over-year on a constant currency basis to $404.6 million, driven by a 5.2% rise in its Research segment fueled by growth in open access, solutions, and AI licensing revenues.

Notably, Wiley highlighted strong leading indicators, including an 18% increase in submissions and 8% rise in output year-to-date for its Research business. The company also expanded a previously executed AI content licensing project worth $9 million during the quarter.

Adjusted operating income jumped 27% with an impressive 280 basis point margin expansion, while adjusted EPS grew a remarkable 39% on a constant currency basis. This profitability improvement was aided by revenue growth and a lower effective tax rate.

Encouraged by its robust performance and profit growth, Wiley raised its fiscal 2026 adjusted EBITDA margin target to over 25%, up from the previous range of 24-25%. The company also reaffirmed its fiscal 2026 targets of low-to-mid single digit revenue growth and $200 million in free cash flow.