Wolters Kluwer: 6% organic growth over nine months, annual targets confirmed
Wolters Kluwer reported on November 4, 2026 organic growth of 6% over the first nine months, compared with 5% in the first half. The third quarter therefore accelerated, as the group had anticipated, and adjusted operating profit rose 10% at constant exchange rates, faster than revenues (+4%).
The Dutch professional information group confirmed all of its annual targets. This confirmation includes a significant increase in product development and restructuring expenses in the fourth quarter, while development spending remained stable at 11% of revenues over nine months.
Adjusted operating profit grows faster than revenues
As reported, revenues increase by only 2%, due to a negative currency effect of 2%: the dollar traded at an average of 1.16 per euro, compared with 1.12 a year earlier. At constant exchange rates, growth reaches 4%, this figure including divestments, mainly that of the FRR business, and acquisitions.
Adjusted operating profit gains 10% at constant exchange rates, a progression that the group attributes to operating leverage and efficiency gains. This pace also benefits from a spending timetable: the group indicates that product development and restructuring expenses are expected to increase significantly in the fourth quarter.
Cash generation follows a slower trajectory. Adjusted free cash flow rises only 3% at constant exchange rates, the increase in adjusted operating profit having been largely absorbed by outflows related to working capital and by higher interest and taxes paid.
Recurring revenues and cloud software drive growth
Recurring revenues, which account for 85% of the total, grow 7% organically, while non-recurring revenues (15%) are stable, after a 2% decline a year earlier.
Recurring cloud software, representing 24% of revenues, posts organic growth of 15%, while the decline in print reduced group growth by 100 basis points.
By region, North America (63% of revenues) grows 5% organically, compared with 7% for Europe (29%) and for Asia-Pacific and the rest of the world (8%). Among the divisions, Tax & Accounting grows 6% organically, supported by a 17% increase in its cloud software revenues.
Health grows 5%, and 7% excluding print. Legal & Regulatory and Corporate Performance & ESG grow 5% and 7% organically, respectively, and 9% at constant exchange rates thanks to acquisitions.
Conversely, Financial & Corporate Compliance declines 4% at constant exchange rates following the divestment of FRR, despite organic growth of 4%.
At the end of October, Tax & Accounting completed the sale of its German consumer tax business for 40 million euros, a transaction announced on October 30. This business was expected to generate approximately 30 million euros in gross revenues in 2026.
Annual targets unchanged and share buybacks extended into 2027
As of September 30, net debt stands at 4,070 million euros, a slight increase compared with 4,024 million at the end of 2025, for a net debt to EBITDA ratio stable at 2.0 times. Over nine months, the group paid 547 million euros in gross dividends and devoted 145 million euros to acquisitions.
Under the 2026 share buyback program, with a maximum amount of 500 million euros, 264 million euros have been executed to date, representing 3.9 million shares at an average price of 67.97 euros. A mandate covering up to 75 million euros has been signed for the period from January 4 to February 22, 2027.
“With 6% organic growth over the first nine months, we are on track to achieve our annual targets,” said Stacey Caywood, Chief Executive Officer.
The group targets high single-digit growth in adjusted diluted earnings per share at constant exchange rates and adjusted free cash flow of 1,300 to 1,350 million euros, compared with 1,348 million in 2025.
The group also maintains its objective of raising the adjusted operating profit margin to approximately 28.0%, compared with 27.5% in 2025, while increasing its product development spending to between 12% and 13% of revenues for the year, in order to support its artificial intelligence strategy.
