News Stock Earnings Reports

News Corp reported a solid start to fiscal 2026 with revenue of $2.14 billion (up 2% YoY) and total segment EBITDA of $340 million (up 5% YoY). Key drivers were strong performance at Dow Jones (revenues +6%, EBITDA +10%) and Digital Real Estate Services (revenues +5%, realtor.com +9%), which together now drive the majority of profits. Book Publishing was a notable weakness this quarter (segment revenue -2%, EBITDA down 28%), impacted by softer ordering and a $13 million receivable write-off tied to the expected closure of a distributor, though management says trends have improved recently and the upcoming front list should help. News Media returned to modest revenue growth and delivered outsized margin improvement through cost efficiencies. Management signaled confidence in cash generation and has materially accelerated share buybacks (repurchasing at roughly $2.5M/day, ~4x prior pace) and expects strong free cash flow for the year. Strategic actions highlighted include continued M&A and product investment (e.g., acquisition of Eco-Movement for Dow Jones Energy data), repositioning of Foxtel into a DAZN stake, pricing tests at The Wall Street Journal, continued focus on AI/data monetization, and modestly higher capital spending (including supply-chain/logistics investments for HarperCollins). Near-term outlook: continued strength at Dow Jones and Digital Real Estate, improving Book Publishing trends in Q2, slightly higher Q2 cost growth at Dow Jones due to lapping, and elevated share repurchases and moderate capex increases for the year.