Wolters Kluwer: An Excellent Buying Opportunity in 2026

In a volatile stock market, where many stocks have experienced significant declines, Wolters Kluwer (AMS: WKL) is emerging as an undervalued gem. This Dutch company, a leader in professional information services, software, and solutions for sectors such as healthcare, tax, accounting, and regulatory compliance, has seen its share price fall by 43% in the last year, even considering dividends. However, with solid fundamentals, innovations in artificial intelligence (AI), and a consensus of analysts pointing to significant upside, it now represents an exceptional buying opportunity for long-term investors. In this article, we will explore why Wolters Kluwer could be one of the best bets in the European market in 2026.

Who is Wolters Kluwer?

Wolters Kluwer N.V. is a multinational company headquartered in the Netherlands, founded in 1836, that operates in more than 180 countries. The company provides digital tools and information services to professionals in critical fields: from tax audit software to risk management platforms in healthcare and finance. Its portfolio includes brands such as CCH, Enablon, and Lippincott, and it generates revenue primarily from recurring subscriptions, which provides it with financial stability. In 2025, its total revenue reached €6.08 billion, with a net profit margin of 18.48% and an impressive return on equity (ROE) of 92.62%. With a market capitalization of approximately €20.39 billion at the beginning of 2026, the company is positioned as a key player in the digital transformation of regulated industries.

Recent Financial Performance: Solid Growth Despite Stock Market Decline

Despite pressure on its share price, Wolters Kluwer's financial results for 2025 have been robust. In the first nine months of the year, revenue grew 7% in constant currencies and 6% organically, while adjusted operating profit increased by 15%. Guidance for the end of 2025 anticipates organic growth in line with the prior year's 6%, driven by a 6% increase in digital revenue (which represents 86% of the total) and a 7% increase in recurring revenue. In the 2025 half-year report, revenue reached €3.052 billion, with organic growth of 5%.

These figures contrast with the decline in the share price, which closed around €90.16 at the beginning of January 2026, with a 52-week range between €86.64 and €181.30. The stock has fallen 44.47% in the last year, but has shown signs of recovery, rising 4.68% in a mid-January session with an unusually high trading volume of 163,634 shares, 180% higher than the previous session. This rebound is partly attributed to a market environment favorable to defensive stocks, although Wolters Kluwer is not strictly in the defense sector.

Furthermore, the company has demonstrated its commitment to shareholders through aggressive share buybacks. In September 2025, it announced the acceleration of its €1 billion buyback program, which boosted the share price by more than 5%. Wolters Kluwer has increased its dividends for nine consecutive years, with a 14.04% growth over the last five years, and offers a dividend yield of 2.70%.

AI Innovations: The Engine of Future Growth

One of the main reasons to consider Wolters Kluwer as a buy opportunity is its commitment to artificial intelligence. In 2025, the company launched several AI-powered tools, such as capabilities in CCH Axcess Audit for audits, a collaboration tool for tax firms, Expert AI for tax and accounting, and Enablon Process Hazard Analysis for risk analysis. These advancements position Wolters Kluwer as a leader in the "AI reboot," according to analysts like Bernstein, who upgraded their recommendation to "Outperform" with a target price of €140 in September 2025, citing attractive valuations following recent weakness.

A recent Wolters Kluwer study highlights regional differences in law firm fees, underscoring the growing demand for its digital solutions in a legal market entering 2026 with evolving negotiation dynamics. With a 72.9% gross profit margin and a focus on recurring revenue, the company is well-positioned to capitalize on the rise of digitalization in regulated sectors.

Valuation Analysis: Why Is Now an Opportunity?

From a valuation perspective, Wolters Kluwer appears undervalued. Its trailing P/E ratio is 18.76, and its forward P/E ratio is 16.16, with a PEG ratio of 1.76. A dividend discount model estimates an intrinsic value of €75.79.

However, the current price of €90.72 suggests the market may be slightly overvaluing it; nevertheless, analysts project an average target of €137.33, implying an upside of 52.32%. The consensus among analysts is "Buy," with 9 buy recommendations and 3 hold recommendations among 12 experts.

Compared to peers, Wolters Kluwer shows an upside of 14.3% versus the sector's 4.8%. Its low beta of 0.22 indicates low volatility, making it attractive to conservative investors. The recent weakness in the price, attributed to competitive concerns, seems exaggerated given the accelerating growth projected for 2025.

Risks to Consider

No investment is without risk. Wolters Kluwer faces a medium-term downtrend, with signs of pessimism among investors. AI competitors and regulatory changes could impact its margins. Furthermore, its reliance on regulated markets exposes it to economic cycles. However, its geographic diversification and focus on subscriptions mitigate these risks.

Conclusion: Time to Buy

Wolters Kluwer is not just a stable company; it's one with AI-driven growth potential and solid finances. With a depressed price, analyst buy recommendations, and a track record of shareholder returns, it represents an excellent buying opportunity in January 2026. Patient investors could see significant returns as the market recognizes its underlying value.

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