Many digital reading applications have built-in features to control the presentation flow of texts by segmenting those texts into smaller linguistic units. Whether and how these segmentation techniques affect the readability of texts is largely unknown. With this background, the current study examined a recent proposal that a sentence-by-sentence presentation mode of texts improves reading comprehension of beginning readers because this presentation mode encourages them to engage in more effortful sentence wrap-up processing. In a series of self-paced reading and eye-tracking experiments with primary school pupils as participants (6-9 years old; n = 134), reading speed and text comprehension were assessed in a full-page control condition--i.e., texts were presented in their entirety--and in an experimental condition in which texts were presented in sentence-by-sentence segments. The results showed that text comprehension scores were higher for segmented texts than for full-page texts. Furthermore, in the final word-regions of the sentences in the texts, the segmented layout induced longer reading times than the full-page layout did. However, mediation analyses revealed that these inflated reading times had no, or even a disruptive influence on text comprehension. This indicates that the observed comprehension advantage for segmented texts cannot be attributed to more effortful sentence wrap-up. A more general implication of these findings is that the segmentation features of reading applications should be used with caution (e.g., in educational or professional settings) because it is unclear how they affect the perceptual and cognitive mechanisms that underlie reading.