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Wolters Kluwer reaffirmed its 2026 guidance after first-quarter recurring revenue growth and expanding AI adoption helped offset weakness in print and non-recurring business segments.
Wolters Kluwer (USOTC:WTKWY) reiterated full-year 2026 guidance after posting 5% organic revenue growth in the first quarter.
Recurring revenue, which represents 85% of total sales, grew 7% organically, highlighting continued strength in subscription and cloud-based products.
Cloud software revenue climbed 14% organically, supported by AI-enabled offerings across healthcare, tax, legal, and compliance divisions.
The company reported rising adoption of AI tools including UpToDate Expert AI and CCH Axcess agentic AI modules.
Investors may focus on whether AI product momentum can continue offsetting declines in print revenue and softer non-recurring sales.
Wolters Kluwer (USOTC:WTKWY) released its first-quarter 2026 trading update, reaffirming its full-year outlook while reporting steady recurring revenue growth and continued expansion of its AI-driven software offerings.
The company reported first-quarter revenue growth of 4% in constant currencies and 5% organic growth. Recurring revenues, which account for 85% of total sales, increased 7% organically, while cloud software revenues rose 14%.
Adjusted operating profit increased 11% in constant currencies, while adjusted free cash flow rose 15%.
Non-recurring revenues declined 5% organically, reflecting weaker trends in print books, on-premise software licenses, and professional implementation services. Print revenue reduced total organic growth by 130 basis points during the quarter.
Wolters Kluwer also continued expanding AI-related initiatives across multiple business segments.
In Health, more than half of U.S. Enterprise customers have signed agreements to adopt UpToDate Expert AI. The company said it remains on track to reach 70% adoption by mid-2026.
In Tax & Accounting, over 150 accounting firms are already using newly launched CCH Axcess agentic AI modules.
“We’ve had a solid start to the year, in line with our expectations. I am confident in reiterating our full year guidance,” said Stacey Caywood, CEO and Chair of the Executive Board.
“Recurring revenues sustained 7% growth, driven by advanced digital information solutions and cloud software.”
The company also highlighted ongoing AI integrations involving Abridge AI and Microsoft Dragon Copilot in its healthcare platform.
The update reinforces Wolters Kluwer’s transition toward higher-margin recurring software and AI-enabled subscription revenue streams.
Growth in cloud software and recurring sales may help support earnings stability even as legacy print and implementation-related revenue categories continue to weaken.
The accelerating rollout of AI products across healthcare, legal, and tax software platforms could also strengthen customer retention and create additional upselling opportunities.
At the same time, investors may continue monitoring whether macroeconomic uncertainty and longer enterprise sales cycles — particularly within ESG and corporate performance products — could weigh on growth later in the year.
Currency fluctuations also remain a notable factor, as the weaker U.S. dollar negatively affected reported revenue growth during the quarter.
Adoption rates for UpToDate Expert AI and CCH Axcess AI modules
Second-half revenue acceleration in Tax & Accounting and Legal & Regulatory
Progress on cloud software expansion across business segments
Execution of the company’s €500 million share buyback program
Whether macroeconomic uncertainty impacts enterprise software spending trends