Wolters Kluwer: Revenues Down 3% in Q1, but Organic Growth at 5%
Wolters Kluwer reported on Wednesday a first quarter of 2026 marked by a 3% decline in reported revenue in reporting currencies, due to a significant depreciation of the dollar against the euro. Adjusted for this currency effect and asset disposals, organic growth was 5%, consistent with the same period in 2025, while recurring revenues increased by 7%. The group reiterates its full-year outlook unchanged, thus demonstrating confidence in the execution of its strategy.
Stable Organic Growth, but Currency Headwinds
In reported figures, the group's revenues decreased by 3% in the first quarter of 2026. This decline is primarily due to a 7-point negative currency impact, resulting from the depreciation of the US dollar (average euro/dollar rate of 1.17 in Q1 2026 versus 1.05 in Q1 2025). Excluding the currency effect, revenues increased by 4%, although this change partially reflects the impact of disposals (mainly FRR). Organic growth came in at 5%, stable compared to Q1 2025. Recurring and other revenues (85% of the total) grew by 7% organically, confirming the robustness of the customer base in subscriptions and advanced digital solutions. Conversely, non-recurring revenues declined by 5% organically, affected by the decline in paper books, on-premise licenses, and professional implementation services.
Divisions on Track, with Varying Paces
Health recorded a 5% increase in constant currencies, with organic growth of 5%, compared to 4% in Q1 2025. The segment benefited from the increasing adoption of UpToDate Expert AI, an artificial intelligence platform, with over 50% of the group's US enterprise clients committing to migrate. Tax & Accounting advanced by 4% in constant currencies (4% organically, compared to 5% a year earlier), the relative decline reflecting the timing of paper publications in North America. Recurring revenues, however, grew by 7% organically, driven by cloud solutions and early adoption of CCH Axcess's AI agent modules. Legal & Regulatory posted the highest growth at +10% in constant currencies, largely supported by three acquisitions (Brightflag, Libra Technology, Inisoft) despite an organic growth of 5% (compared to 7% a year earlier, on a more challenging comparison basis).
Cash Up and Expected Margin Improvement
The group achieved an increase in cash conversion year-over-year, supported by favorable timing of working capital funding calls, a phenomenon Wolters Kluwer anticipates as reversible in the coming quarters. Net debt stood at 3.788 billion euros on March 31, 2026, compared to 4.024 billion at the end of December 2025, bringing the net debt/EBITDA ratio to 1.9x, compared to 2.0x at the end of 2025. On the shareholder front, the group deployed 137 million euros in share buybacks in Q1 2026. The total dividend for 2025 will be 2.52 euros per share (+8% vs 2024), subject to shareholder approval on May 21. For 2026, Wolters Kluwer anticipates an increase in adjusted operating margin and high single-digit growth in adjusted diluted earnings per share in constant currencies. Product development investments are expected to reach 12-13% of revenues, reflecting an acceleration of the AI strategy.
