New York, NY – John Wiley & Sons, a renowned American multinational publishing company known for its popular “For Dummies” series, has experienced a substantial surge in its stock price, reaching $41.24.

The company has recently attracted significant interest from various organizations looking to utilize its content for training artificial intelligence and machine learning models. Moreover, John Wiley & Sons has surpassed its earnings guidance for the fiscal year 2024, leading to a considerable boost in its stock value. This article aims to analyze the potential growth trajectory of the company moving forward.

In the fourth quarter and full year fiscal 2024 results, John Wiley & Sons reported a 4% increase in adjusted revenue to $441 million compared to the previous year. Adjusted earnings per share also rose by 2% to $1.21 over the same period. Despite a 3% decline in total revenue for the Research segment, the Learning segment witnessed an 18% growth.

The decrease in revenue for the Research segment was attributed to various challenges faced by the company, including publication delays due to COVID-19, as well as declines in ancillary print and licensing revenue. However, with a 15% increase in submissions on a trailing 12-month basis and accelerating output, there is potential for recovery in this segment.

On the Learning segment side, the company saw growth and margin expansion driven by factors such as increased demand for digital content and courseware, growth in undergraduate enrollment, and interest in utilizing learning content for training AI models like GenAI Large Language Models.

Looking ahead, John Wiley & Sons anticipates revenue growth in Fiscal 2025, particularly in Research Publishing and Learning, with a focus on open access, institutional models, and new business ventures. The company’s collaboration with technology firms to leverage its content for artificial intelligence presents promising opportunities, although integrating this technology effectively remains crucial.

Ensuring ethical and responsible use of AI in scholarly publishing is vital to maintaining academic integrity, especially considering potential risks such as plagiarism. While there are high hopes for the company’s AI initiatives, evidence of revenue rebound in the Research Publishing segment will be essential for sustained stock growth.

In conclusion, John Wiley & Sons has shown promising growth driven by its AI endeavors, but the company must demonstrate revenue growth and earnings rebound to justify continued stock upside. At this time, the stock is rated as a Hold.