Human Factors Hinder AI Adoption
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 21 2026
0mins
Source: Newsfilter
- AI Adoption Barriers: Research from FranklinCovey reveals that 80% of employees perceive their managers as 'hands-off' regarding AI, indicating a significant gap between AI's potential and its actual workplace application, which adversely affects productivity and business performance.
- Lack of Training: Only 14% of workers report receiving any AI training, while 40% say their managers are unaware of their AI usage, leading to inconsistent and scattered implementation of AI projects across organizations.
- Leadership Patterns Impact: The study identifies that leadership patterns encouraging AI use without guidance result in inconsistent outcomes, while framing AI primarily as a cost-reduction tool creates anxiety rather than engagement, hindering proactive participation.
- Solution Launch: FranklinCovey has introduced two customizable solutions aimed at helping leaders and teams establish effective AI usage behaviors, accelerating AI impact through empathy and action, thereby enhancing team confidence and capabilities.
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Analyst Views on FC
Wall Street analysts forecast FC stock price to rise
3 Analyst Rating
3 Buy
0 Hold
0 Sell
Strong Buy
Current: 24.020
Low
22.00
Averages
27.33
High
38.00
Current: 24.020
Low
22.00
Averages
27.33
High
38.00
About FC
Franklin Covey Co. is a global content and solutions company focused on individual and organizational performance improvement. The Company provides professional services in 150 countries and territories around the world. Its segments include North America, International Direct Offices, International Licenses, Education Practice, and Corporate and Other. The North America segment offers organizations to solve the problems that require changes in human behavior, including leadership, productivity, execution, trust, and sales performance. This segment includes sales personnel and operations that serve the United States and Canada. The International Licensees segment is primarily comprised of its international licensee’s royalty revenues. The Education Practice segment includes its domestic and international education practice operations. The Corporate and other information includes leasing operations, shipping and handling revenues, royalty revenues from Franklin Planner Corp.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Human Factors Hinder AI Adoption
- AI Adoption Barriers: Research from FranklinCovey reveals that 80% of employees perceive their managers as 'hands-off' regarding AI, indicating a significant gap between AI's potential and its actual workplace application, which adversely affects productivity and business performance.
- Lack of Training: Only 14% of workers report receiving any AI training, while 40% say their managers are unaware of their AI usage, leading to inconsistent and scattered implementation of AI projects across organizations.
- Leadership Patterns Impact: The study identifies that leadership patterns encouraging AI use without guidance result in inconsistent outcomes, while framing AI primarily as a cost-reduction tool creates anxiety rather than engagement, hindering proactive participation.
- Solution Launch: FranklinCovey has introduced two customizable solutions aimed at helping leaders and teams establish effective AI usage behaviors, accelerating AI impact through empathy and action, thereby enhancing team confidence and capabilities.
See More
Franklin Covey Reports Revenue Growth in Latest Earnings
- Revenue Growth: Franklin Covey reported total revenue of $59.6 million, flat year-over-year, with a notable 16% increase in Education Division revenue to $17.5 million, indicating strong demand in the education market that is expected to drive future performance.
- Significant EBITDA Improvement: Adjusted EBITDA reached $4.1 million, a 99% increase from the prior year, reflecting substantial improvements in cost control and operational efficiency, which enhances investor confidence.
- Strong Cash Flow Performance: Cash flow from operating activities was $16.4 million, up 28% year-over-year, while free cash flow improved to $13.2 million from a negative position last year, indicating a continued positive trend in the company's financial health.
- Increased Client Confidence: Deferred revenue rose 7% to $101.5 million, with 62% of revenue under multi-year contracts, demonstrating strong client trust and willingness for long-term collaboration, thereby enhancing the company's competitive position in the market.
See More
Franklin Covey Q2 2026 Earnings Highlights
- Revenue Growth Momentum: Franklin Covey reported total revenue of $59.6 million for Q2 2026, reflecting a 5% year-over-year increase, with a notable 7% growth in Enterprise North America, indicating strong execution and growth momentum that supports future revenue and cash flow enhancement.
- Increase in Multi-Year Contracts: The company reported a 16% year-over-year growth in deferred revenue to $59 million, with 62% of revenue coming from multi-year contracts, which not only enhances revenue predictability but also lays a solid foundation for future financial stability.
- Strong Cash Flow Performance: Free cash flow for the second quarter reached $13.2 million, showing significant growth compared to the previous year, reflecting successful working capital management that further supports future investment and growth plans.
- Full-Year Performance Outlook: Management reaffirmed the revenue guidance for fiscal 2026 at $265 million to $275 million and adjusted EBITDA at $28 million to $33 million, demonstrating confidence in the second half's performance while emphasizing ongoing execution and market opportunities.
See More
Franklin Covey Q2 Earnings Report Analysis
- Earnings Performance: Franklin Covey reported a Q2 GAAP EPS of -$0.17, missing expectations by $0.20, indicating challenges in profitability that may affect investor confidence.
- Revenue Status: The company achieved revenue of $59.6 million in Q2, which is flat year-over-year, although it slightly beat expectations by $0.9 million, reflecting weak market demand.
- Future Guidance: For fiscal 2026, Franklin Covey projects total revenue in the range of $265 million to $275 million, indicating cautious optimism about future growth, but market conditions remain a concern.
- Adjusted EBITDA: The company anticipates adjusted EBITDA between $28 million and $33 million, providing a specific range, yet the feasibility of achieving this remains to be seen and its impact on overall financial health is crucial.
See More
Expected Earnings Reports for Q1 2026
- Penguin Solutions Earnings: Penguin Solutions, Inc. (PENG) is expected to report an earnings per share of $0.28 for the quarter ending February 28, 2026, reflecting a 20% decrease year-over-year, although it has beaten expectations every quarter in the past year, with the highest beat at 44%.
- Franklin Covey Earnings: Franklin Covey Company (FC) is projected to report an earnings per share of $0.00, representing a 100% increase compared to the same quarter last year, despite missing the consensus by 20.93% in Q3 2025.
- Bassett Furniture Earnings: Bassett Furniture Industries, Incorporated (BSET) anticipates an earnings per share of $0.17 for the quarter ending February 28, 2026, which is a 19.05% decrease from the previous year, and it missed the consensus by 23.33% in Q4 2025.
- Industry Comparison: According to Zacks Investment Research, FC's 2026 Price to Earnings ratio is 19.26, higher than the industry average of 15.80, indicating stronger earnings growth potential compared to competitors, while BSET's ratio of 14.74 suggests a relative competitive advantage.
See More
FranklinCovey Partners with Hospitals to Enhance Patient Outcomes
- Patient Satisfaction Improvement: FranklinCovey's collaboration with various hospitals has successfully increased inpatient satisfaction from the 26th to the 76th percentile within four months for a non-profit healthcare network, significantly enhancing patient experience and strengthening market competitiveness.
- Leadership Turnover Reduction: Advent Health achieved a 50% reduction in leadership turnover through FranklinCovey's solutions, which not only improved team stability but also saved costs associated with recruitment and training, ensuring continuity in patient care.
- Employee Engagement Boost: In a hospital system with over 500 beds, FranklinCovey's interventions led to a 50% increase in employee engagement and a 37% rise in team trust, directly enhancing operational efficiency and quality of patient care.
- Surgical Incident Reduction: A metropolitan area hospital experienced a 52% reduction in perioperative incidents after implementing FranklinCovey's strategies, which not only improved patient safety but also reduced potential costs associated with medical errors, thereby enhancing the hospital's reputation.
See More
Human Factors Hinder AI Adoption
- AI Adoption Barriers: Research from FranklinCovey reveals that 80% of employees perceive their managers as 'hands-off' regarding AI, indicating a significant gap between AI's potential and its actual workplace application, which adversely affects productivity and business performance.
- Lack of Training: Only 14% of workers report receiving any AI training, while 40% say their managers are unaware of their AI usage, leading to inconsistent and scattered implementation of AI projects across organizations.
- Leadership Patterns Impact: The study identifies that leadership patterns encouraging AI use without guidance result in inconsistent outcomes, while framing AI primarily as a cost-reduction tool creates anxiety rather than engagement, hindering proactive participation.
- Solution Launch: FranklinCovey has introduced two customizable solutions aimed at helping leaders and teams establish effective AI usage behaviors, accelerating AI impact through empathy and action, thereby enhancing team confidence and capabilities.
See More
Franklin Covey Reports Revenue Growth in Latest Earnings
- Revenue Growth: Franklin Covey reported total revenue of $59.6 million, flat year-over-year, with a notable 16% increase in Education Division revenue to $17.5 million, indicating strong demand in the education market that is expected to drive future performance.
- Significant EBITDA Improvement: Adjusted EBITDA reached $4.1 million, a 99% increase from the prior year, reflecting substantial improvements in cost control and operational efficiency, which enhances investor confidence.
- Strong Cash Flow Performance: Cash flow from operating activities was $16.4 million, up 28% year-over-year, while free cash flow improved to $13.2 million from a negative position last year, indicating a continued positive trend in the company's financial health.
- Increased Client Confidence: Deferred revenue rose 7% to $101.5 million, with 62% of revenue under multi-year contracts, demonstrating strong client trust and willingness for long-term collaboration, thereby enhancing the company's competitive position in the market.
See More
Franklin Covey Q2 2026 Earnings Highlights
- Revenue Growth Momentum: Franklin Covey reported total revenue of $59.6 million for Q2 2026, reflecting a 5% year-over-year increase, with a notable 7% growth in Enterprise North America, indicating strong execution and growth momentum that supports future revenue and cash flow enhancement.
- Increase in Multi-Year Contracts: The company reported a 16% year-over-year growth in deferred revenue to $59 million, with 62% of revenue coming from multi-year contracts, which not only enhances revenue predictability but also lays a solid foundation for future financial stability.
- Strong Cash Flow Performance: Free cash flow for the second quarter reached $13.2 million, showing significant growth compared to the previous year, reflecting successful working capital management that further supports future investment and growth plans.
- Full-Year Performance Outlook: Management reaffirmed the revenue guidance for fiscal 2026 at $265 million to $275 million and adjusted EBITDA at $28 million to $33 million, demonstrating confidence in the second half's performance while emphasizing ongoing execution and market opportunities.
See More
Franklin Covey Q2 Earnings Report Analysis
- Earnings Performance: Franklin Covey reported a Q2 GAAP EPS of -$0.17, missing expectations by $0.20, indicating challenges in profitability that may affect investor confidence.
- Revenue Status: The company achieved revenue of $59.6 million in Q2, which is flat year-over-year, although it slightly beat expectations by $0.9 million, reflecting weak market demand.
- Future Guidance: For fiscal 2026, Franklin Covey projects total revenue in the range of $265 million to $275 million, indicating cautious optimism about future growth, but market conditions remain a concern.
- Adjusted EBITDA: The company anticipates adjusted EBITDA between $28 million and $33 million, providing a specific range, yet the feasibility of achieving this remains to be seen and its impact on overall financial health is crucial.
See More
Expected Earnings Reports for Q1 2026
- Penguin Solutions Earnings: Penguin Solutions, Inc. (PENG) is expected to report an earnings per share of $0.28 for the quarter ending February 28, 2026, reflecting a 20% decrease year-over-year, although it has beaten expectations every quarter in the past year, with the highest beat at 44%.
- Franklin Covey Earnings: Franklin Covey Company (FC) is projected to report an earnings per share of $0.00, representing a 100% increase compared to the same quarter last year, despite missing the consensus by 20.93% in Q3 2025.
- Bassett Furniture Earnings: Bassett Furniture Industries, Incorporated (BSET) anticipates an earnings per share of $0.17 for the quarter ending February 28, 2026, which is a 19.05% decrease from the previous year, and it missed the consensus by 23.33% in Q4 2025.
- Industry Comparison: According to Zacks Investment Research, FC's 2026 Price to Earnings ratio is 19.26, higher than the industry average of 15.80, indicating stronger earnings growth potential compared to competitors, while BSET's ratio of 14.74 suggests a relative competitive advantage.
See More
FranklinCovey Partners with Hospitals to Enhance Patient Outcomes
- Patient Satisfaction Improvement: FranklinCovey's collaboration with various hospitals has successfully increased inpatient satisfaction from the 26th to the 76th percentile within four months for a non-profit healthcare network, significantly enhancing patient experience and strengthening market competitiveness.
- Leadership Turnover Reduction: Advent Health achieved a 50% reduction in leadership turnover through FranklinCovey's solutions, which not only improved team stability but also saved costs associated with recruitment and training, ensuring continuity in patient care.
- Employee Engagement Boost: In a hospital system with over 500 beds, FranklinCovey's interventions led to a 50% increase in employee engagement and a 37% rise in team trust, directly enhancing operational efficiency and quality of patient care.
- Surgical Incident Reduction: A metropolitan area hospital experienced a 52% reduction in perioperative incidents after implementing FranklinCovey's strategies, which not only improved patient safety but also reduced potential costs associated with medical errors, thereby enhancing the hospital's reputation.
See More
