Wolters Kluwer reported a solid first quarter for 2026, with revenues up 4% in constant currencies and 5% organically, driven by robust recurring and cloud software growth. The company reiterated its full-year guidance, emphasizing accelerated AI innovation and strong adoption of new AI-powered solutions in its Health and Tax & Accounting segments. Despite currency headwinds and some print revenue declines, adjusted operating profit and free cash flow saw significant increases.
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First-quarter revenues for Wolters Kluwer were up 4% in constant currencies and up 5% organically.
Cloud software revenues, representing 23% of total revenues, were up 14% organically.
In Health, more than half of Wolters Kluwer's U.S. Enterprise customers have now signed up to adopt UpToDate Expert AI.
Each 1 U.S. cent move in the average €/$ exchange rate for the year causes an opposite change of approximately 4.5 euro cents in diluted adjusted EPS.
Wolters Kluwer has a sponsored Level 1 American Depositary Receipt (ADR) program, with ADRs traded on the over-the-counter market in the U.S. (WTKWY).
Wolters Kluwer released its first-quarter 2026 trading update.
Full-year 2026 guidance for Wolters Kluwer was reiterated.
Recurring revenues, representing 85% of total revenues, were up 7% organically.
Non-recurring revenues, representing 15% of total revenues, were down 5%.
Print revenues, representing 4% of total revenues, reduced organic growth by 130 basis points.
First-quarter adjusted operating profit was up 11% in constant currencies.
Product development and other investments are expected to be second-half-weighted.
First-quarter adjusted free cash flow was up 15% in constant currencies.
Favorable timing of working capital movements is expected to reverse in coming quarters.
Rolling 12-months' net-debt-to-EBITDA was 1.9x as of March 31, 2026.
€164 million of an intended share buyback of up to €500 million was completed in the year through May 4, 2026.
Stacey Caywood commented that Wolters Kluwer had a solid start to the year, in line with expectations.
Stacey Caywood is confident in reiterating Wolters Kluwer's full-year guidance.
Recurring revenues sustained 7% growth, driven by advanced digital information solutions and cloud software.
In Tax & Accounting, the new CCH Axcess agentic AI modules are seeing good early adoption by firms.
Wolters Kluwer has accelerated the pace of AI innovation, expanded partnerships, and is advancing commercial capabilities across the group.
Organic growth was 5%, in line with the comparable period (1Q 2025: 5%).
Non-recurring revenues declined 5% organically due to weaker trends in print books, on-premise licenses, and professional implementation services.
Health revenues increased 5% in constant currencies, with organic growth at 5% (1Q 2025: 4%).
Clinical Solutions delivered 6% organic growth, reflecting good renewal rates globally and favorable timing of partnership revenues.
Wolters Kluwer is on track to reach its goal of 70% UpToDate Expert AI adoption by mid-year.
During the quarter, the integration of UpToDate with the Abridge AI scribe was activated.
Work began on integration of UpToDate with Microsoft Dragon Copilot.
Learning, Research & Practice achieved 3% organic growth.
Medical research journals saw strong growth in open access fees in the quarter.
The trend in print books was weaker in the quarter, partly reflecting timing.
Tax & Accounting revenues increased 4% in constant currencies.
Tax & Accounting organic growth was 4%, reflecting the timing of North American print publications.
Tax & Accounting recurring revenues sustained robust 7% organic growth, driven by cloud solutions.
Tax & Accounting North America recorded 2% organic growth as sustained organic growth in recurring revenues was partly offset by a decline in print books.
Over 150 national and regional accounting firms are using the recently launched CCH Axcess agentic AI modules, Intelligence and Client Collaboration.
Tax & Accounting Europe delivered 8% organic growth, supported by continued double-digit organic growth in cloud software solutions.
Cloud-based automation and data exchange solutions (CodaBox, ClearFacts, Kyte, and Flowin) saw strong organic growth.
Financial & Corporate Compliance revenues decreased 2% in constant currencies, reflecting the divestment of the Finance, Risk & Regulatory Reporting unit (FRR) on December 1, 2025.
Financial & Corporate Compliance organic growth was 5% (1Q 2025: 3%).
Legal Services delivered 6% organic growth, driven by subscription renewals and upselling of services including business licenses, alongside muted transactional revenues.
Transactional revenues reflect the expected ramp-down of beneficial ownership (BOI) activity related to the suspension of enforcement of the Corporate Transparency Act (CTA) in March 2025.
Financial Services delivered 4% organic growth, driven by growth in recurring revenues from lending compliance solutions and a modest improvement in lien and other transactional revenues.
Legal & Regulatory revenues grew 10% in constant currencies, partly due to the acquisitions of Brightflag, Libra Technology, and Inisoft.
Legal & Regulatory organic growth was 5%, reflecting a challenging comparable from the prior year.
Legal & Regulatory Information Solutions organic growth was 4% against a challenging comparable related to extra print and digital revenues generated around the German elections a year ago.
The Libra AI Assistant has been integrated with proprietary and other legal content in nine European countries within six months of acquisition.
The advanced AI-powered Libra AI Assistant is gaining traction with law firm customers.
Legal & Regulatory Software revenues grew 6% organically.
ELM Solutions saw good organic growth driven by transactional revenues related to legal invoice volumes.
Brightflag, acquired in June 2025, continued to deliver strong revenue growth.
Legal practice management software (Legisway and Kleos) delivered solid organic growth.
Corporate Performance & ESG revenues increased 5% in constant currencies and 5% organically against a challenging comparable.
EHS & ESG revenues declined 1% organically as growth in recurring cloud software revenue was offset by a decline in implementation services and on-premise licenses.
The CCH Tagetik CPM platform grew 7% organically, as continued double-digit organic growth in recurring cloud software was partly offset by lower implementation services.
Corporate Tax and Audit & Assurance solutions saw robust organic growth, partly due to non-recurring projects.
The integration of StandardFusion into TeamMate is on track.
First-quarter 2026 cash conversion increased year-on-year, reflecting favorable timing of working capital inflows.
Adjusted free cash flow increased 15% in constant currencies, partly offset by higher interest and income tax paid.
A total of €137 million in cash was deployed towards share repurchases in the first quarter of 2026.