News Corp (NWS) grows Q3 2026 revenue 9% with 18% EBITDA jump
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
News Corporation reported a strong third quarter of fiscal 2026, showing broad-based growth across its portfolio. Total revenue rose 9% to $2.19 billion from $2.01 billion, led by Digital Real Estate Services, Dow Jones and Book Publishing. Net income from continuing operations increased 13% to $121 million, while Total Segment EBITDA climbed 18% to $343 million, indicating improved profitability. Diluted EPS from continuing operations reached $0.16, with adjusted EPS up to $0.21 from $0.17. Digital Real Estate revenues grew 17% to $473 million, Dow Jones revenue increased 8% to $619 million, and Book Publishing revenue rose 8% to $555 million, partially offset by weaker profitability in the News Media segment. Free cash flow for the first nine months was $535 million, roughly in line with the prior year despite higher capital spending, and the company continued sizeable share repurchases.
Positive
- Strong top-line and profit growth: Q3 revenue rose 9% to $2.19 billion, net income from continuing operations increased 13% to $121 million, and Total Segment EBITDA grew 18% to $343 million, with adjusted EPS up from $0.17 to $0.21.
- Digitally driven expansion: Dow Jones revenues increased 8% to $619 million with 84% from digital, and Digital Real Estate Services revenues rose 17% to $473 million, including 20% growth at REA Group and 10% growth at Move.
- Resilient cash generation and capital returns: Nine‑month free cash flow was $535 million despite higher capital expenditures, and the company repurchased $456 million of its shares, while highlighting AI‑related content licensing deals as potential incremental revenue sources.
Negative
- News Media profit pressure: While News Media revenues grew 5% to $538 million, Segment EBITDA declined 55% to $15 million, and adjusted Segment EBITDA fell 61%, reflecting weaker contribution from News UK and launch costs for the California Post.
Insights
News Corp delivers broad-based Q3 growth with stronger margins and stable cash generation.
News Corporation posted Q3 fiscal 2026 revenue of $2.19 billion, up 9%, with $343 million in Total Segment EBITDA, up 18%. Growth was driven by Digital Real Estate Services, Dow Jones and Book Publishing, while foreign exchange added $88 million of revenue.
Adjusted EPS rose to $0.21 from $0.17, showing earnings strength beyond one‑off items. Digital Real Estate revenues increased 17% to $473 million, and Dow Jones revenues rose 8% to $619 million, reflecting subscription, professional information and digital advertising momentum.
For the first nine months, free cash flow was $535 million, slightly below the prior year as capital expenditures increased to $280 million. The company repurchased $456 million of shares and highlighted AI‑related content licensing deals with Meta and OpenAI as potential future revenue drivers, while News Media EBITDA declined, partly due to new product investment.
Digital subscriptions and real estate platforms underpin News Corp’s growth trajectory.
Dow Jones digital revenues represented 84% of segment revenue, with total consumer digital‑only subscriptions reaching 6.1 million and The Wall Street Journal digital‑only subscriptions up 11% to 4.3 million. This deepens recurring, subscription-based revenue.
In Digital Real Estate Services, REA Group revenues increased 20% to $325 million, and Move (Realtor.com) revenues rose 10% to $148 million. Management positioned the company as an “AI inputs” provider, citing licensing agreements with Meta and OpenAI and ongoing discussions with additional counterparties.
The News Media segment showed revenue growth but a 55% decline in Segment EBITDA to $15 million, reflecting lower contribution from News UK and launch costs for the California Post. Overall, the mix continues to shift toward higher-margin digital and data businesses across the group.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q3 Revenue: $2.19 billion
Net income from continuing operations: $121 million
Total Segment EBITDA: $343 million
+5 more
8 metrics
Q3 Revenue
$2.19 billion
Total revenues for the quarter ended March 31, 2026, up 9% from $2.01 billion
Net income from continuing operations
$121 million
Q3 fiscal 2026, up 13% from $107 million
Total Segment EBITDA
$343 million
Q3 fiscal 2026, up 18% from $290 million
Diluted EPS from continuing operations
$0.16
Q3 fiscal 2026, compared to $0.14 in prior year quarter
Adjusted EPS
$0.21
Q3 fiscal 2026, up from $0.17 in prior year quarter
Digital Real Estate Services revenue
$473 million
Q3 fiscal 2026, 17% increase from $406 million
Free cash flow
$535 million
Nine months ended March 31, 2026, versus $539 million in prior year period
Share repurchases
$456 million
Repurchase of News Corp shares over nine months ended March 31, 2026
Key Terms
Total Segment EBITDA, Adjusted Revenues, Adjusted EPS, free cash flow, +2 more
6 terms
Total Segment EBITDA financial
"Third quarter Total Segment EBITDA was $343 million, an 18% increase compared to $290 million in the prior year."
Total segment EBITDA is the combined operating profit of a company’s individual business units measured before interest, taxes, depreciation and amortization; it adds up each segment’s EBITDA to show how much cash-generating profit the different parts of the business produce together. Investors use it like adding up the income from separate stores before shared costs and bank charges to see which areas drive performance, compare segment strength over time, and guide capital allocation decisions.
Adjusted Revenues financial
"Adjusted Revenues (which excludes the foreign currency impact, acquisitions and divestitures as defined in Note 2) increased 4% compared to the prior year."
Adjusted EPS financial
"Adjusted EPS (as defined in Note 3) were $0.21 compared to $0.17 in the prior year."
Adjusted earnings per share (adjusted eps) is a measure of a company's profit per share that has been modified to exclude certain one-time or unusual items, such as costs from restructuring or asset sales. It provides a clearer picture of the company’s core performance by removing events that may distort the usual earnings. Investors use adjusted eps to better understand a company's ongoing profitability and compare it more accurately over time.
free cash flow financial
"Free cash flow in the nine months ended March 31, 2026 was $535 million compared to $539 million in the prior year."
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
constant currency revenues financial
"The following tables reconcile reported revenues to constant currency revenues for the three and nine months ended March 31, 2026."
Revenue reported as if exchange rates had not changed between periods, so growth reflects only business performance and not currency swings. It matters to investors because companies that sell in many countries can show higher or lower reported sales simply from shifting exchange rates; constant currency lets you compare results on an "apples-to-apples" basis to see genuine sales trends and management effectiveness.
U.K. Newspaper Matters regulatory
"The Company uses revenues, Total Segment EBITDA and Segment EBITDA excluding the impact of acquisitions, divestitures, fees and costs, net of indemnification, related to the claims and investigations arising out of certain conduct at The News of the World (the “U.K. Newspaper Matters”)"
Earnings Snapshot
Revenue: $2.19 billion · Guidance included
Q3 fiscal 2026
Revenue
$2.19 billion
+9% YoY
Net income from continuing operations
$121 million
+13% YoY
Total Segment EBITDA
$343 million
+18% YoY
Diluted EPS from continuing operations
$0.16
up from $0.14
Adjusted EPS
$0.21
up from $0.17
Guidance
Management indicated they remain on track for another year of record profitability and expect strong growth in free cash flow generation for the full fiscal year.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 7, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
(Address of principal executive offices, including zip code)
(212 ) 416-3400
(Registrant's telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On May 7, 2026, News Corporation (the “Company”) released its financial results for the quarter ended March 31, 2026. A copy of the Company’s press release is attached as Exhibit 99.1 to this Form 8-K and incorporated herein by reference.
The information in this report shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description | |||||||
| 99.1 | Press release issued by News Corporation, dated May 7, 2026, announcing News Corporation’s financial results for the quarter ended March 31, 2026 | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| NEWS CORPORATION (REGISTRANT) | |||||||||||
| By: | /s/ Michael L. Bunder | ||||||||||
| Michael L. Bunder | |||||||||||
| Senior Vice President, Deputy General Counsel and Corporate Secretary | |||||||||||
Dated: May 7, 2026
 | Exhibit 99.1 | |||||||
NEWS CORPORATION REPORTS THIRD QUARTER RESULTS FOR FISCAL 2026
FISCAL 2026 THIRD QUARTER KEY FINANCIAL HIGHLIGHTS
•Third quarter revenues were $2.19 billion, a 9% increase compared to $2.01 billion in the prior year, driven by growth at the Digital Real Estate Services, Dow Jones and Book Publishing segments.
•Net income from continuing operations in the quarter was $121 million, a 13% increase compared to $107 million in the prior year.
•Third quarter Total Segment EBITDA was $343 million, an 18% increase compared to $290 million in the prior year.
•For the quarter, reported EPS from continuing operations were $0.16 as compared to $0.14 in the prior year - Adjusted EPS were $0.21 compared to $0.17 in the prior year.
•Dow Jones revenues for the quarter were $619 million, an 8% increase compared to the prior year, underpinned by 19% growth at Risk & Compliance, 12% growth at Dow Jones Energy and 13% growth in digital advertising revenues.
•Revenues at Move, operator of Realtor.com®, were $148 million, a 10% increase from the prior year, driven by premium offerings and expansion in growth adjacencies.
•REA Group posted strong results for the quarter, growing revenues 20% to $325 million, driven by positive foreign exchange impacts and continued strong Australian residential performance.
•Book Publishing revenues grew 8% for the quarter to $555 million, led by strong sales of Rachel Reid’s Game Changers related to the release of the Heated Rivalry streaming series.
NEW YORK, NY – May 7, 2026 – News Corporation (“News Corp” or the “Company”) (Nasdaq: NWS, NWSA; ASX: NWS, NWSLV) today reported financial results for the three months ended March 31, 2026.
Commenting on the results, Chief Executive Robert Thomson said:
“News Corp has again delivered resounding results this quarter, and we remain on track for another year of record profitability given the strength seen thus far in the fourth quarter. For the third quarter of fiscal 2026, our total revenue rose 9 percent to $2.2 billion, while net income from continuing operations rose 13 percent to $121 million and Total Segment EBITDA increased a robust 18 percent to $343 million. Both EPS and Adjusted EPS were also notably higher.
The third quarter was compelling evidence of the transformation of our business, and demonstrated the robustness of our core growth engines, which we expect will propel us towards a strong fiscal finish. Given our firm belief that the current share price does not reflect the intrinsic value of the company or its prospects, we have continued to execute our enhanced buyback program at an accelerated rate.
Our confidence comes as the world is grappling with the potential impact of AI. We are an AI inputs company and that fact was reflected in our recent deal with Meta, which complements our partnership with OpenAI. We are in discussions with other companies who recognize the preciousness of provenance, and these potential deals should have a positive impact on our revenue and profitability.
We are also tracking a number of dodgy digital firms scraping illicitly, illegally our precious content and shamelessly reselling this purloined property. We have these baleful bad-boy bots in our sights and intend to pursue them vigorously. And we believe companies that willingly buy this stolen content from these nefarious fences are also culpable.”
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THIRD QUARTER RESULTS
The Company reported fiscal 2026 third quarter total revenues of $2.19 billion, a 9% increase compared to $2.01 billion in the prior year period, primarily driven by higher real estate revenues at the Digital Real Estate Services segment, higher circulation and subscription revenues at the Dow Jones segment and higher sales at the Book Publishing segment. Results included an $88 million, or 5%, positive impact from foreign currency fluctuations. Adjusted Revenues (which excludes the foreign currency impact, acquisitions and divestitures as defined in Note 2) increased 4% compared to the prior year.
Net income from continuing operations for the quarter was $121 million, a 13% increase compared to $107 million in the prior year, primarily driven by higher Total Segment EBITDA, partially offset by higher tax expense.
The Company reported third quarter Total Segment EBITDA of $343 million, an 18% increase compared to $290 million in the prior year primarily due to strong contributions from the Digital Real Estate Services and Dow Jones segments and lower employee costs in the Other segment. Adjusted Total Segment EBITDA (as defined in Note 2) increased 13%.
Net income from continuing operations per share attributable to News Corporation stockholders was $0.16 as compared to $0.14 in the prior year. Adjusted EPS (as defined in Note 3) were $0.21 compared to $0.17 in the prior year.
SEGMENT REVIEW
| For the three months ended March 31, | For the nine months ended March 31, | ||||||||||||||||||||||||||||||||||
| 2026 | 2025 | % Change | 2026 | 2025 | % Change | ||||||||||||||||||||||||||||||
| (in millions) | Better/ (Worse) | (in millions) | Better/ (Worse) | ||||||||||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||||||||
| Dow Jones | $ | 619 | $ | 575 | 8 | % | $ | 1,853 | $ | 1,727 | 7 | % | |||||||||||||||||||||||
| Digital Real Estate Services | 473 | 406 | 17 | % | 1,463 | 1,336 | 10 | % | |||||||||||||||||||||||||||
| Book Publishing | 555 | 514 | 8 | % | 1,722 | 1,655 | 4 | % | |||||||||||||||||||||||||||
| News Media | 538 | 514 | 5 | % | 1,653 | 1,625 | 2 | % | |||||||||||||||||||||||||||
| Other | — | — | — | % | — | — | — | % | |||||||||||||||||||||||||||
| Total Revenues | $ | 2,185 | $ | 2,009 | 9 | % | $ | 6,691 | $ | 6,343 | 5 | % | |||||||||||||||||||||||
| Segment EBITDA: | |||||||||||||||||||||||||||||||||||
| Dow Jones | $ | 147 | $ | 132 | 11 | % | $ | 482 | $ | 437 | 10 | % | |||||||||||||||||||||||
| Digital Real Estate Services | 155 | 124 | 25 | % | 519 | 449 | 16 | % | |||||||||||||||||||||||||||
| Book Publishing | 73 | 64 | 14 | % | 230 | 246 | (7) | % | |||||||||||||||||||||||||||
| News Media | 15 | 33 | (55) | % | 115 | 125 | (8) | % | |||||||||||||||||||||||||||
| Other | (47) | (63) | 25 | % | (142) | (164) | 13 | % | |||||||||||||||||||||||||||
| Total Segment EBITDA | $ | 343 | $ | 290 | 18 | % | $ | 1,204 | $ | 1,093 | 10 | % | |||||||||||||||||||||||
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Dow Jones
Revenues in the quarter increased $44 million, or 8%, compared to the prior year, driven by continued growth in the professional information business and higher digital advertising revenues. Results included a $7 million, or 2%, positive impact from foreign currency fluctuations. Digital revenues at Dow Jones in the quarter represented 84% of total revenues compared to 82% in the prior year. Adjusted Revenues increased 6%.
Circulation and subscription revenues increased $33 million, or 7%, reflecting an 11% increase in professional information business revenues, led by 19% growth in Risk & Compliance revenues to $100 million, which includes a modest contribution from recent acquisitions, and 12% growth in Dow Jones Energy revenues to $77 million. Circulation revenues increased 1% compared to the prior year driven by the conversion of customers from introductory promotions to higher pricing and the continued growth in digital-only subscriptions, partly offset by lower print volume and the absence of a licensing revenue timing benefit in the prior year. Digital circulation revenues accounted for 76% of circulation revenues for the quarter, compared to 75% in the prior year.
During the third quarter, total average subscriptions to Dow Jones’ consumer products were over 6.5 million, a 7% increase compared to the prior year. Digital-only subscriptions to Dow Jones’ consumer products grew 9% to nearly 6.1 million. Total subscriptions to The Wall Street Journal grew 8% compared to the prior year, to 4.7 million average subscriptions in the quarter. Digital-only subscriptions to The Wall Street Journal grew 11% to 4.3 million average subscriptions in the quarter, driven by growth in enterprise subscriptions, and represented 92% of total Wall Street Journal subscriptions.
For the three months ended March 31, | |||||||||||||||||
| 2026 | 2025 | % Change | |||||||||||||||
| (in thousands, except %) | Better/(Worse) | ||||||||||||||||
| The Wall Street Journal | |||||||||||||||||
| Digital-only subscriptions | 4,332 | 3,913 | 11 | % | |||||||||||||
| Total subscriptions | 4,707 | 4,339 | 8 | % | |||||||||||||
| Barron’s Group | |||||||||||||||||
| Digital-only subscriptions | 1,438 | 1,368 | 5 | % | |||||||||||||
| Total subscriptions | 1,530 | 1,485 | 3 | % | |||||||||||||
| Total Consumer | |||||||||||||||||
| Digital-only subscriptions | 6,064 | 5,543 | 9 | % | |||||||||||||
| Total subscriptions | 6,546 | 6,103 | 7 | % | |||||||||||||
Advertising revenues for the quarter increased $5 million, or 6%, driven by digital advertising revenues, which grew 13%, partially offset by a 6% decrease in print advertising revenues. Digital advertising accounted for 67% of total advertising revenues for the quarter, compared to 63% in the prior year.
Segment EBITDA for the quarter increased $15 million, or 11%, primarily as a result of the higher revenues discussed above, partially offset by higher employee costs. Adjusted Segment EBITDA increased 12%.
On March 16th, 2026, News Corp hosted a Dow Jones investor briefing in New York, announcing, among other things, a pathway to $1 billion in annual Segment EBITDA within five years(1), which should benefit from strong growth in Risk & Compliance and Dow Jones Energy.
Investor briefing materials can be located on the News Corp Investor Relations website: https://newscorp.com/news-corp-quarterly-earnings-reports/investor-presentation-dow-jones-investor-briefing-2026/.
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Digital Real Estate Services
Revenues in the quarter increased $67 million, or 17%, compared to the prior year, driven by higher revenues at both REA Group and Move. Segment EBITDA in the quarter increased $31 million, or 25%, compared to the prior year, due to higher contribution from REA Group and improved results at Move. Adjusted Revenues and Adjusted Segment EBITDA increased 8% and 16%, respectively.
In the quarter, revenues at REA Group increased $54 million, or 20%, to $325 million, driven by a $31 million, or 12%, positive impact from foreign currency fluctuations, higher Australian residential revenues due to price increases, growth in add-on products and geographical mix and higher financial services revenues. Strong Australian revenues were partly offset by a decrease in REA India revenues due to the sale of PropTiger and the closure of Housing Edge. Australian national residential buy listing volumes in the quarter were up 1% compared to the prior year, with listings in Sydney up 4% and Melbourne up 7%.
Move’s revenues in the quarter increased $13 million, or 10%, to $148 million, primarily as a result of higher sales of RealPRO SelectSM, as Move shifts its focus to more premium offerings with higher revenues per lead, and revenue growth in seller, new homes and rentals. Based on Move’s internal data, average monthly unique users of Realtor.com®’s web and mobile sites for the fiscal third quarter were 66 million, or flat compared to the prior year. Lead volume rose 6% compared to the prior year period. Monthly average visits for the third quarter for Realtor.com®, according to Comscore, were 261 million.
Book Publishing
Revenues in the quarter increased $41 million, or 8%, compared to the prior year, driven by higher physical and digital book sales led by Rachel Reid’s Game Changers, and a $6 million impact from recent acquisitions. The increase included a $12 million, or 2%, positive impact from foreign currency fluctuations. Adjusted Revenues increased 4%.
Digital sales increased 11% compared to the prior year driven by an increase in e-book and audiobook sales. Digital sales represented 26% of consumer revenues for the quarter compared to 25% for the prior year period. Backlist sales represented approximately 64% of consumer revenues in the quarter compared to 65% in the prior year.
Segment EBITDA for the quarter increased $9 million, or 14%, compared to the prior year, primarily due to the higher revenues discussed above, partially offset by higher costs due to higher sales volume. Adjusted Segment EBITDA also increased 14%.
News Media
Revenues in the quarter increased $24 million, or 5%, compared to the prior year, primarily due to a $38 million, or 8%, positive impact from foreign currency fluctuations. Adjusted Revenues for the segment decreased 2% compared to the prior year.
Circulation and subscription revenues increased $20 million, or 7%, compared to the prior year, due to a $21 million, or 7%, positive impact from foreign currency fluctuations, increased cover and subscription pricing and digital subscriber growth, partially offset by print volume declines.
Advertising revenues increased $5 million, or 3%, compared to the prior year, primarily due to a $13 million, or 7%, positive impact from foreign currency fluctuations and higher digital advertising revenues, partially offset by lower print advertising revenues, notably at News UK.
4
In the quarter, Segment EBITDA decreased $18 million, or 55%, compared to the prior year, primarily driven by lower contribution from News UK and costs related to the recently launched California Post. Adjusted Segment EBITDA decreased 61%.
Digital revenues represented 40% of News Media segment revenues in the quarter, compared to 39% in the prior year, and represented 38% of the combined revenues of the newspaper mastheads. Digital subscribers and users across key properties within the News Media segment are summarized below:
•Closing digital subscribers at News Corp Australia as of March 31, 2026 were 1,171,000 (992,000 for news mastheads), compared to 1,148,000 (981,000 for news mastheads) in the prior year (Source: Internal data)
•The Times and Sunday Times closing digital subscribers, including the Times Literary Supplement, as of March 31, 2026 were 676,000, compared to 629,000 in the prior year (Source: Internal data).
•The Sun’s digital offering reached 65 million global monthly unique users in March 2026, compared to 74 million in the prior year (Source: Meta Pixel)
•New York Post’s digital network reached 78 million unique users in March 2026, compared to 85 million in the prior year (Source: Google Analytics)
CASH FLOW
The following table presents a reconciliation of net cash provided by operating activities from continuing operations to free cash flow:
| For the nine months ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| (in millions) | |||||||||||
| Net cash provided by operating activities from continuing operations | $ | 815 | $ | 789 | |||||||
| Less: Capital expenditures | (280) | (250) | |||||||||
| Free cash flow | $ | 535 | $ | 539 | |||||||
Net cash provided by operating activities from continuing operations of $815 million for the nine months ended March 31, 2026 was $26 million higher than net cash provided by operating activities from continuing operations of $789 million in the prior year, primarily due to higher Total Segment EBITDA, partially offset by higher working capital due to the timing of payments and higher tax payments.
Free cash flow in the nine months ended March 31, 2026 was $535 million compared to $539 million in the prior year. The decrease in free cash flow was primarily due to higher capital expenditures, partially offset by higher cash provided by operating activities from continuing operations. News Corp expects strong growth in free cash flow generation for the full fiscal year despite moderately higher capital expenditures.
Free cash flow is a non-GAAP financial measure. Free cash flow is defined as net cash provided by (used in) operating activities from continuing operations less capital expenditures. Free cash flow excludes cash flows from discontinued operations. Free cash flow may not be comparable to similarly titled measures reported by other companies, since companies and investors may differ as to what items should be included in the calculation of free cash flow.
Free cash flow does not represent the total increase or decrease in the cash balance for the period and should be considered in addition to, not as a substitute for, the net change in cash and cash equivalents as presented in the Company’s consolidated statements of cash flows prepared in accordance with GAAP, which incorporates all cash movements during the period.
5
The Company believes free cash flow provides useful information to management and investors about the Company’s liquidity and cash flow trends.
COMPARISON OF NON-GAAP TO U.S. GAAP INFORMATION
Adjusted Revenues, Total Segment EBITDA, Adjusted Total Segment EBITDA, Adjusted Segment EBITDA, adjusted net income attributable to News Corporation stockholders, Adjusted EPS, constant currency revenues and free cash flow are non-GAAP financial measures contained in this earnings release. The Company believes these measures are important tools for investors and analysts to use in assessing the Company’s underlying business performance and to provide for more meaningful comparisons of the Company’s operating performance between periods. These measures also allow investors and analysts to view the Company’s business from the same perspective as Company management. These non-GAAP measures may be different than similar measures used by other companies and should be considered in addition to, not as a substitute for, measures of financial performance calculated in accordance with GAAP. Reconciliations for the differences between non-GAAP measures used in this earnings release and comparable financial measures calculated in accordance with U.S. GAAP are included in Notes 1, 2, 3 and 4 and the reconciliation of net cash provided by operating activities from continuing operations to free cash flow is included above.
Footnotes
(1) Forward-looking view of Dow Jones Segment EBITDA is not a profit forecast.
Conference call
News Corporation’s earnings conference call can be heard live at 5:00 p.m. EDT on May 7, 2026. To listen to the call, please visit http://investors.newscorp.com.
Cautionary Statement Concerning Forward-Looking Statements
This document contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding trends and uncertainties affecting the Company’s business, results of operations and financial condition, Dow Jones’ business, the Company’s strategy and strategic initiatives, including potential acquisitions, investments and dispositions, the Company’s cost savings initiatives and the outcome of contingencies such as litigation and investigations. These statements are based on management’s views and assumptions regarding future events and business performance as of the time the statements are made. Actual results may differ materially from these expectations due to the risks, uncertainties and other factors described in the Company’s filings with the Securities and Exchange Commission. More detailed information about factors that could affect future results is contained in our filings with the Securities and Exchange Commission. The “forward-looking statements” included in this document are made only as of the date of this document and we do not have and do not undertake any obligation to publicly update any “forward-looking statements” to reflect subsequent events or circumstances, and we expressly disclaim any such obligation, except as required by law or regulation.
About News Corporation
News Corp (Nasdaq: NWS, NWSA; ASX: NWS, NWSLV) is a global, diversified media and information services company focused on creating and distributing authoritative and engaging content and other products and services. The company comprises businesses across a range of media, including: information services and news, digital real estate services and book publishing. Headquartered in New York, News Corp operates primarily in the United States, Australia, and the United Kingdom, and its content and other products and services are distributed and consumed worldwide. More information is available at: www.newscorp.com.
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Contacts:
| Investor Relations | Corporate Communications | ||||
| Michael Florin | Arthur Bochner | ||||
| 212-416-3363 | 646-422-9671 | ||||
| mflorin@newscorp.com | abochner@newscorp.com | ||||
7
NEWS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited; in millions, except per share amounts)
| For the three months ended March 31, | For the nine months ended March 31, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||
| Circulation and subscription | $ | 809 | $ | 755 | $ | 2,383 | $ | 2,243 | |||||||||||||||
| Advertising | 322 | 308 | 1,028 | 1,014 | |||||||||||||||||||
| Consumer | 530 | 492 | 1,647 | 1,585 | |||||||||||||||||||
| Real estate | 365 | 318 | 1,136 | 1,052 | |||||||||||||||||||
| Other | 159 | 136 | 497 | 449 | |||||||||||||||||||
| Total Revenues | 2,185 | 2,009 | 6,691 | 6,343 | |||||||||||||||||||
| Operating expenses | (952) | (904) | (2,901) | (2,819) | |||||||||||||||||||
| Selling, general and administrative | (890) | (815) | (2,586) | (2,431) | |||||||||||||||||||
| Depreciation and amortization | (122) | (114) | (357) | (339) | |||||||||||||||||||
| Impairment and restructuring charges | (18) | (13) | (67) | (51) | |||||||||||||||||||
| Equity losses of affiliates | (1) | — | (5) | (11) | |||||||||||||||||||
| Interest income (expense), net | 5 | 1 | 20 | (2) | |||||||||||||||||||
| Other, net | (18) | (13) | (27) | 101 | |||||||||||||||||||
| Income before income tax expense from continuing operations | 189 | 151 | 768 | 791 | |||||||||||||||||||
| Income tax expense from continuing operations | (68) | (44) | (255) | (229) | |||||||||||||||||||
| Net income from continuing operations | 121 | 107 | 513 | 562 | |||||||||||||||||||
| Net income from discontinued operations, net of tax | — | 30 | — | 2 | |||||||||||||||||||
| Net income | 121 | 137 | 513 | 564 | |||||||||||||||||||
| Net income attributable to noncontrolling interests from continuing operations | (32) | (26) | (119) | (135) | |||||||||||||||||||
| Net (income) loss attributable to noncontrolling interests from discontinued operations | — | (8) | — | 8 | |||||||||||||||||||
| Net income attributable to News Corporation stockholders | $ | 89 | $ | 103 | $ | 394 | $ | 437 | |||||||||||||||
| Weighted-average shares outstanding | |||||||||||||||||||||||
| Basic | 554.0 | 567.2 | 559.8 | 568.3 | |||||||||||||||||||
| Diluted | 555.7 | 569.5 | 561.5 | 570.3 | |||||||||||||||||||
| Net income attributable to News Corporation stockholders per share: | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Continuing operations | $ | 0.16 | $ | 0.14 | $ | 0.70 | $ | 0.75 | |||||||||||||||
Discontinued operations | $ | — | $ | 0.04 | $ | — | $ | 0.02 | |||||||||||||||
| $ | 0.16 | $ | 0.18 | $ | 0.70 | $ | 0.77 | ||||||||||||||||
Diluted | |||||||||||||||||||||||
Continuing operations | $ | 0.16 | $ | 0.14 | $ | 0.70 | $ | 0.75 | |||||||||||||||
Discontinued operations | $ | — | $ | 0.04 | $ | — | $ | 0.02 | |||||||||||||||
| $ | 0.16 | $ | 0.18 | $ | 0.70 | $ | 0.77 | ||||||||||||||||
8
NEWS CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited; in millions)
| As of March 31, 2026 | As of June 30, 2025 | ||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 2,171 | $ | 2,403 | |||||||
| Receivables, net | 1,778 | 1,562 | |||||||||
| Inventory, net | 303 | 327 | |||||||||
| Other current assets | 327 | 519 | |||||||||
| Total current assets | 4,579 | 4,811 | |||||||||
| Non-current assets: | |||||||||||
| Investments | 1,000 | 1,016 | |||||||||
| Property, plant and equipment, net | 1,350 | 1,331 | |||||||||
| Operating lease right-of-use assets | 765 | 789 | |||||||||
| Intangible assets, net | 1,877 | 1,930 | |||||||||
| Goodwill | 4,485 | 4,373 | |||||||||
Deferred income tax assets, net | 186 | 254 | |||||||||
| Other non-current assets | 1,274 | 1,000 | |||||||||
| Total assets | $ | 15,516 | $ | 15,504 | |||||||
| LIABILITIES AND EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 384 | $ | 335 | |||||||
| Accrued expenses | 1,041 | 1,036 | |||||||||
| Deferred revenue | 556 | 498 | |||||||||
| Current borrowings | — | 25 | |||||||||
| Other current liabilities | 709 | 714 | |||||||||
| Total current liabilities | 2,690 | 2,608 | |||||||||
| Non-current liabilities: | |||||||||||
| Borrowings | 1,988 | 1,937 | |||||||||
| Retirement benefit obligations | 115 | 117 | |||||||||
Deferred income tax liabilities, net | 54 | 57 | |||||||||
| Operating lease liabilities | 854 | 904 | |||||||||
| Other non-current liabilities | 534 | 492 | |||||||||
| Commitments and contingencies | |||||||||||
| Equity: | |||||||||||
| Class A common stock | 4 | 4 | |||||||||
| Class B common stock | 2 | 2 | |||||||||
| Additional paid-in capital | 10,567 | 11,058 | |||||||||
| Accumulated deficit | (452) | (747) | |||||||||
| Accumulated other comprehensive loss | (1,537) | (1,543) | |||||||||
| Total News Corporation stockholders' equity | 8,584 | 8,774 | |||||||||
| Noncontrolling interests | 697 | 615 | |||||||||
| Total equity | 9,281 | 9,389 | |||||||||
| Total liabilities and equity | $ | 15,516 | $ | 15,504 | |||||||
9
NEWS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited; in millions)
| For the nine months ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Operating activities: | |||||||||||
| Net income | $ | 513 | $ | 564 | |||||||
| Net loss (income) from discontinued operations, net of tax | — | (2) | |||||||||
| Net income from continuing operations | 513 | 562 | |||||||||
| Adjustments to reconcile net income from continuing operations to net cash provided by operating activities from continuing operations: | |||||||||||
| Depreciation and amortization | 357 | 339 | |||||||||
| Operating lease expense | 51 | 55 | |||||||||
| Equity losses of affiliates | 5 | 11 | |||||||||
| Impairment charges | 17 | 2 | |||||||||
| Deferred income taxes | 69 | 83 | |||||||||
| Other, net | 31 | (99) | |||||||||
| Change in operating assets and liabilities, net of acquisitions: | |||||||||||
| Receivables and other assets | (270) | (95) | |||||||||
| Inventories, net | 32 | (49) | |||||||||
| Accounts payable and other liabilities | 10 | (20) | |||||||||
| Net cash provided by operating activities from continuing operations | 815 | 789 | |||||||||
| Investing activities: | |||||||||||
| Capital expenditures | (280) | (250) | |||||||||
| Proceeds from sales of property, plant and equipment | 1 | — | |||||||||
| Acquisitions, net of cash acquired | (96) | (53) | |||||||||
| Purchases of investments in equity affiliates and other | (53) | (141) | |||||||||
| Proceeds from sales of investments in equity affiliates and other | 65 | 263 | |||||||||
| Other, net | (16) | (13) | |||||||||
| Net cash used in investing activities from continuing operations | (379) | (194) | |||||||||
| Financing activities: | |||||||||||
| Borrowings | 125 | 61 | |||||||||
| Repayment of borrowings | (100) | (200) | |||||||||
| Repurchase of News Corp shares | (456) | (114) | |||||||||
| Dividends paid | (149) | (128) | |||||||||
| Other, net | (96) | (44) | |||||||||
| Net cash used in financing activities from continuing operations | (676) | (425) | |||||||||
Cash flows from discontinued operations: | |||||||||||
| Net cash (used in) provided by operating activities from discontinued operations | (6) | 157 | |||||||||
| Net cash used in investing activities from discontinued operations | — | (65) | |||||||||
| Net cash used in financing activities from discontinued operations | — | (39) | |||||||||
| Net cash (used in) provided by discontinued operations | (6) | 53 | |||||||||
| Net change in cash, cash equivalents and restricted cash, including discontinued operations | (246) | 223 | |||||||||
| Effect of exchange rate changes on cash, cash equivalents and restricted cash, including discontinued operations | 14 | (12) | |||||||||
| Cash, cash equivalents and restricted cash, including discontinued operations, beginning of year | 2,403 | 1,960 | |||||||||
| Cash, cash equivalents and restricted cash, including discontinued operations, end of period | 2,171 | 2,171 | |||||||||
| Less: Cash and cash equivalents at end of period of discontinued operations | — | (76) | |||||||||
| Cash and cash equivalents | $ | 2,171 | $ | 2,095 | |||||||
10
NOTE 1 – TOTAL SEGMENT EBITDA
Segment EBITDA is defined as revenues less operating expenses and selling, general and administrative expenses. Segment EBITDA does not include: depreciation and amortization, impairment and restructuring charges, equity losses of affiliates, interest (expense) income, net, other, net, income tax (expense) benefit and net income (loss) from discontinued operations, net of tax. Management believes that Segment EBITDA is an appropriate measure for evaluating the operating performance of the Company’s business segments because it is the primary measure used by the Company’s chief operating decision maker to evaluate the performance of and allocate resources within the Company’s businesses. Segment EBITDA provides management, investors and equity analysts with a measure to analyze the operating performance of each of the Company’s business segments and its enterprise value against historical data and competitors’ data, although historical results may not be indicative of future results (as operating performance is highly contingent on many factors, including customer tastes and preferences).
Total Segment EBITDA is a non-GAAP measure and should be considered in addition to, not as a substitute for, net income (loss) from continuing operations, cash flow from continuing operations and other measures of financial performance reported in accordance with GAAP. In addition, this measure does not reflect cash available to fund requirements and excludes items, such as depreciation and amortization and impairment and restructuring charges, which are significant components in assessing the Company’s financial performance. The Company believes that the presentation of Total Segment EBITDA provides useful information regarding the Company’s operations and other factors that affect the Company’s reported results. Specifically, the Company believes that by excluding certain one-time or non-cash items such as impairment and restructuring charges and depreciation and amortization, as well as potential distortions between periods caused by factors such as financing and capital structures and changes in tax positions or regimes, the Company provides users of its consolidated financial statements with insight into both its core operations as well as the factors that affect reported results between periods but which the Company believes are not representative of its core business. As a result, users of the Company’s consolidated financial statements are better able to evaluate changes in the core operating results of the Company across different periods. The following tables reconcile net income from continuing operations to Total Segment EBITDA for the three and nine months ended March 31, 2026 and 2025:
| For the three months ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | Change | % Change | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Net income from continuing operations | 121 | 107 | 14 | 13 | % | ||||||||||||||||||
Reconciling items: | |||||||||||||||||||||||
Income tax expense from continuing operations | 68 | 44 | 24 | 55 | % | ||||||||||||||||||
| Other, net | 18 | 13 | 5 | 38 | % | ||||||||||||||||||
| Interest income, net | (5) | (1) | (4) | (400) | % | ||||||||||||||||||
| Equity losses of affiliates | 1 | — | 1 | ** | |||||||||||||||||||
| Impairment and restructuring charges | 18 | 13 | 5 | 38 | % | ||||||||||||||||||
| Depreciation and amortization | 122 | 114 | 8 | 7 | % | ||||||||||||||||||
| Total Segment EBITDA | $ | 343 | $ | 290 | $ | 53 | 18 | % | |||||||||||||||
11
| For the nine months ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | Change | % Change | ||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||
| Net income from continuing operations | 513 | 562 | (49) | (9) | % | ||||||||||||||||||
Reconciling items: | |||||||||||||||||||||||
Income tax expense from continuing operations | 255 | 229 | 26 | 11 | % | ||||||||||||||||||
| Other, net | 27 | (101) | 128 | ** | |||||||||||||||||||
Interest (income) expense, net | (20) | 2 | (22) | ** | |||||||||||||||||||
| Equity losses of affiliates | 5 | 11 | (6) | (55) | % | ||||||||||||||||||
| Impairment and restructuring charges | 67 | 51 | 16 | 31 | % | ||||||||||||||||||
| Depreciation and amortization | 357 | 339 | 18 | 5 | % | ||||||||||||||||||
| Total Segment EBITDA | $ | 1,204 | $ | 1,093 | $ | 111 | 10 | % | |||||||||||||||
** Not meaningful
12
NOTE 2 – ADJUSTED REVENUES, ADJUSTED TOTAL SEGMENT EBITDA AND ADJUSTED SEGMENT EBITDA
The Company uses revenues, Total Segment EBITDA and Segment EBITDA excluding the impact of acquisitions, divestitures, fees and costs, net of indemnification, related to the claims and investigations arising out of certain conduct at The News of the World (the “U.K. Newspaper Matters”), charges for other significant, non-ordinary course legal or regulatory matters (“litigation charges”) and foreign currency fluctuations (“Adjusted Revenues,” “Adjusted Total Segment EBITDA” and “Adjusted Segment EBITDA,” respectively) to evaluate the performance of the Company’s core business operations exclusive of certain items that impact the comparability of results from period to period such as the unpredictability and volatility of currency fluctuations. The Company calculates the impact of foreign currency fluctuations for businesses reporting in currencies other than the U.S. dollar by multiplying the results for each quarter in the current period by the difference between the average exchange rate for that quarter and the average exchange rate in effect during the corresponding quarter of the prior year and totaling the impact for all quarters in the current period.
The calculation of Adjusted Revenues, Adjusted Total Segment EBITDA and Adjusted Segment EBITDA may not be comparable to similarly titled measures reported by other companies, since companies and investors may differ as to what type of events warrant adjustment. Adjusted Revenues, Adjusted Total Segment EBITDA and Adjusted Segment EBITDA are not measures of performance under generally accepted accounting principles and should not be construed as substitutes for amounts determined under GAAP as measures of performance. However, management uses these measures in comparing the Company’s historical performance and believes that they provide meaningful and comparable information to investors to assist in their analysis of our performance relative to prior periods and our competitors.
The following tables reconcile reported revenues and reported Total Segment EBITDA to Adjusted Revenues and Adjusted Total Segment EBITDA for the three and nine months ended March 31, 2026 and 2025:
| Revenues | Total Segment EBITDA | |||||||||||||||||||||||||||||||||||||
| For the three months ended March 31, | For the three months ended March 31, | |||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | Difference | 2026 | 2025 | Difference | |||||||||||||||||||||||||||||||||
| (in millions) | (in millions) | |||||||||||||||||||||||||||||||||||||
| As reported | $ | 2,185 | $ | 2,009 | $ | 176 | $ | 343 | $ | 290 | $ | 53 | ||||||||||||||||||||||||||
| Impact of acquisitions | (16) | — | (16) | 4 | — | 4 | ||||||||||||||||||||||||||||||||
| Impact of divestitures | — | (4) | 4 | — | — | — | ||||||||||||||||||||||||||||||||
| Impact of foreign currency fluctuations | (88) | — | (88) | (16) | — | (16) | ||||||||||||||||||||||||||||||||
| Net impact of U.K. Newspaper Matters | — | — | — | — | 4 | (4) | ||||||||||||||||||||||||||||||||
| As adjusted | $ | 2,081 | $ | 2,005 | $ | 76 | $ | 331 | $ | 294 | $ | 37 | ||||||||||||||||||||||||||
13
| Revenues | Total Segment EBITDA | |||||||||||||||||||||||||||||||||||||
| For the nine months ended March 31, | For the nine months ended March 31, | |||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | Difference | 2026 | 2025 | Difference | |||||||||||||||||||||||||||||||||
| (in millions) | (in millions) | |||||||||||||||||||||||||||||||||||||
| As reported | $ | 6,691 | $ | 6,343 | $ | 348 | $ | 1,204 | $ | 1,093 | $ | 111 | ||||||||||||||||||||||||||
| Impact of acquisitions | (52) | — | (52) | 9 | — | 9 | ||||||||||||||||||||||||||||||||
| Impact of divestitures | (3) | (15) | 12 | 1 | 3 | (2) | ||||||||||||||||||||||||||||||||
| Impact of foreign currency fluctuations | (118) | — | (118) | (20) | — | (20) | ||||||||||||||||||||||||||||||||
| Net impact of U.K. Newspaper Matters | — | — | — | 1 | 10 | (9) | ||||||||||||||||||||||||||||||||
| As adjusted | $ | 6,518 | $ | 6,328 | $ | 190 | $ | 1,195 | $ | 1,106 | $ | 89 | ||||||||||||||||||||||||||
Foreign Exchange Rates
Average foreign exchange rates used in the calculation of the impact of foreign currency fluctuations for the three and nine months ended March 31, 2026 and 2025 are as follows:
| Fiscal Year 2026 | |||||||||||||||||
| Q1 | Q2 | Q3 | |||||||||||||||
| U.S. Dollar per Australian Dollar | $0.65 | $0.66 | $0.69 | ||||||||||||||
| U.S. Dollar per British Pound Sterling | $1.35 | $1.33 | $1.35 | ||||||||||||||
| Fiscal Year 2025 | |||||||||||||||||
| Q1 | Q2 | Q3 | |||||||||||||||
| U.S. Dollar per Australian Dollar | $0.67 | $0.65 | $0.63 | ||||||||||||||
| U.S. Dollar per British Pound Sterling | $1.30 | $1.28 | $1.26 | ||||||||||||||
14
Adjusted Revenues and Adjusted Segment EBITDA by segment for the three and nine months ended March 31, 2026 and 2025 are as follows:
| For the three months ended March 31, | |||||||||||||||||
| 2026 | 2025 | % Change | |||||||||||||||
| (in millions) | Better/(Worse) | ||||||||||||||||
| Adjusted Revenues: | |||||||||||||||||
| Dow Jones | $ | 607 | $ | 575 | 6 | % | |||||||||||
| Digital Real Estate Services | 437 | 404 | 8 | % | |||||||||||||
| Book Publishing | 537 | 514 | 4 | % | |||||||||||||
| News Media | 500 | 512 | (2) | % | |||||||||||||
| Other | — | — | — | % | |||||||||||||
| Adjusted Total Revenues | $ | 2,081 | $ | 2,005 | 4 | % | |||||||||||
| Adjusted Segment EBITDA: | |||||||||||||||||
| Dow Jones | $ | 148 | $ | 132 | 12 | % | |||||||||||
| Digital Real Estate Services | 144 | 124 | 16 | % | |||||||||||||
| Book Publishing | 73 | 64 | 14 | % | |||||||||||||
| News Media | 13 | 33 | (61) | % | |||||||||||||
| Other | (47) | (59) | 20 | % | |||||||||||||
| Adjusted Total Segment EBITDA | $ | 331 | $ | 294 | 13 | % | |||||||||||
| For the nine months ended March 31, | |||||||||||||||||
| 2026 | 2025 | % Change | |||||||||||||||
| (in millions) | Better/(Worse) | ||||||||||||||||
| Adjusted Revenues: | |||||||||||||||||
| Dow Jones | $ | 1,823 | $ | 1,727 | 6 | % | |||||||||||
| Digital Real Estate Services | 1,428 | 1,330 | 7 | % | |||||||||||||
| Book Publishing | 1,669 | 1,655 | 1 | % | |||||||||||||
| News Media | 1,598 | 1,616 | (1) | % | |||||||||||||
| Other | — | — | — | % | |||||||||||||
| Adjusted Total Revenues | $ | 6,518 | $ | 6,328 | 3 | % | |||||||||||
| Adjusted Segment EBITDA: | |||||||||||||||||
| Dow Jones | $ | 483 | $ | 437 | 11 | % | |||||||||||
| Digital Real Estate Services | 515 | 450 | 14 | % | |||||||||||||
| Book Publishing | 228 | 246 | (7) | % | |||||||||||||
| News Media | 110 | 127 | (13) | % | |||||||||||||
| Other | (141) | (154) | 8 | % | |||||||||||||
| Adjusted Total Segment EBITDA | $ | 1,195 | $ | 1,106 | 8 | % | |||||||||||
15
The following tables reconcile reported revenues and Segment EBITDA by segment to Adjusted Revenues and Adjusted Segment EBITDA by segment for the three and nine months ended March 31, 2026 and 2025:
| For the three months ended March 31, 2026 | |||||||||||||||||||||||||||||||||||
| As Reported | Impact of Acquisitions | Impact of Divestitures | Impact of Foreign Currency Fluctuations | Net Impact of U.K. Newspaper Matters | As Adjusted | ||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||||||||
| Dow Jones | $ | 619 | $ | (5) | $ | — | $ | (7) | $ | — | $ | 607 | |||||||||||||||||||||||
| Digital Real Estate Services | 473 | (5) | — | (31) | — | 437 | |||||||||||||||||||||||||||||
| Book Publishing | 555 | (6) | — | (12) | — | 537 | |||||||||||||||||||||||||||||
| News Media | 538 | — | — | (38) | — | 500 | |||||||||||||||||||||||||||||
| Other | — | — | — | — | — | — | |||||||||||||||||||||||||||||
| Total Revenues | $ | 2,185 | $ | (16) | $ | — | $ | (88) | $ | — | $ | 2,081 | |||||||||||||||||||||||
| Segment EBITDA: | |||||||||||||||||||||||||||||||||||
| Dow Jones | $ | 147 | $ | 1 | $ | — | $ | — | $ | — | $ | 148 | |||||||||||||||||||||||
| Digital Real Estate Services | 155 | 3 | — | (14) | — | 144 | |||||||||||||||||||||||||||||
| Book Publishing | 73 | — | — | — | — | 73 | |||||||||||||||||||||||||||||
| News Media | 15 | — | — | (2) | — | 13 | |||||||||||||||||||||||||||||
| Other | (47) | — | — | — | — | (47) | |||||||||||||||||||||||||||||
| Total Segment EBITDA | $ | 343 | $ | 4 | $ | — | $ | (16) | $ | — | $ | 331 | |||||||||||||||||||||||
| For the three months ended March 31, 2025 | |||||||||||||||||||||||||||||||||||
| As Reported | Impact of Acquisitions | Impact of Divestitures | Impact of Foreign Currency Fluctuations | Net Impact of U.K. Newspaper Matters | As Adjusted | ||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||||||||
| Dow Jones | $ | 575 | $ | — | $ | — | $ | — | $ | — | $ | 575 | |||||||||||||||||||||||
| Digital Real Estate Services | 406 | — | (2) | — | — | 404 | |||||||||||||||||||||||||||||
| Book Publishing | 514 | — | — | — | — | 514 | |||||||||||||||||||||||||||||
| News Media | 514 | — | (2) | — | — | 512 | |||||||||||||||||||||||||||||
| Other | — | — | — | — | — | — | |||||||||||||||||||||||||||||
| Total Revenues | $ | 2,009 | $ | — | $ | (4) | $ | — | $ | — | $ | 2,005 | |||||||||||||||||||||||
| Segment EBITDA: | |||||||||||||||||||||||||||||||||||
| Dow Jones | $ | 132 | $ | — | $ | — | $ | — | $ | — | $ | 132 | |||||||||||||||||||||||
| Digital Real Estate Services | 124 | — | — | — | — | 124 | |||||||||||||||||||||||||||||
| Book Publishing | 64 | — | — | — | — | 64 | |||||||||||||||||||||||||||||
| News Media | 33 | — | — | — | — | 33 | |||||||||||||||||||||||||||||
| Other | (63) | — | — | — | 4 | (59) | |||||||||||||||||||||||||||||
| Total Segment EBITDA | $ | 290 | $ | — | $ | — | $ | — | $ | 4 | $ | 294 | |||||||||||||||||||||||
16
| For the nine months ended March 31, 2026 | |||||||||||||||||||||||||||||||||||
| As Reported | Impact of Acquisitions | Impact of Divestitures | Impact of Foreign Currency Fluctuations | Net Impact of U.K. Newspaper Matters | As Adjusted | ||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||||||||
| Dow Jones | $ | 1,853 | $ | (15) | $ | — | $ | (15) | $ | — | $ | 1,823 | |||||||||||||||||||||||
| Digital Real Estate Services | 1,463 | (9) | (1) | (25) | — | 1,428 | |||||||||||||||||||||||||||||
| Book Publishing | 1,722 | (28) | — | (25) | — | 1,669 | |||||||||||||||||||||||||||||
| News Media | 1,653 | — | (2) | (53) | — | 1,598 | |||||||||||||||||||||||||||||
| Other | — | — | — | — | — | — | |||||||||||||||||||||||||||||
| Total Revenues | $ | 6,691 | $ | (52) | $ | (3) | $ | (118) | $ | — | $ | 6,518 | |||||||||||||||||||||||
| Segment EBITDA: | |||||||||||||||||||||||||||||||||||
| Dow Jones | $ | 482 | $ | 2 | $ | — | $ | (1) | $ | — | $ | 483 | |||||||||||||||||||||||
| Digital Real Estate Services | 519 | 6 | 1 | (11) | — | 515 | |||||||||||||||||||||||||||||
| Book Publishing | 230 | 1 | — | (3) | — | 228 | |||||||||||||||||||||||||||||
| News Media | 115 | — | — | (5) | — | 110 | |||||||||||||||||||||||||||||
| Other | (142) | — | — | — | 1 | (141) | |||||||||||||||||||||||||||||
| Total Segment EBITDA | $ | 1,204 | $ | 9 | $ | 1 | $ | (20) | $ | 1 | $ | 1,195 | |||||||||||||||||||||||
| For the nine months ended March 31, 2025 | |||||||||||||||||||||||||||||||||||
| As Reported | Impact of Acquisitions | Impact of Divestitures | Impact of Foreign Currency Fluctuations | Net Impact of U.K. Newspaper Matters | As Adjusted | ||||||||||||||||||||||||||||||
| (in millions) | |||||||||||||||||||||||||||||||||||
| Revenues: | |||||||||||||||||||||||||||||||||||
| Dow Jones | $ | 1,727 | $ | — | $ | — | $ | — | $ | — | $ | 1,727 | |||||||||||||||||||||||
| Digital Real Estate Services | 1,336 | — | (6) | — | — | 1,330 | |||||||||||||||||||||||||||||
| Book Publishing | 1,655 | — | — | — | — | 1,655 | |||||||||||||||||||||||||||||
| News Media | 1,625 | — | (9) | — | — | 1,616 | |||||||||||||||||||||||||||||
| Other | — | — | — | — | — | — | |||||||||||||||||||||||||||||
| Total Revenues | $ | 6,343 | $ | — | $ | (15) | $ | — | $ | — | $ | 6,328 | |||||||||||||||||||||||
| Segment EBITDA: | |||||||||||||||||||||||||||||||||||
| Dow Jones | $ | 437 | $ | — | $ | — | $ | — | $ | — | $ | 437 | |||||||||||||||||||||||
| Digital Real Estate Services | 449 | — | 1 | — | — | 450 | |||||||||||||||||||||||||||||
| Book Publishing | 246 | — | — | — | — | 246 | |||||||||||||||||||||||||||||
| News Media | 125 | — | 2 | — | — | 127 | |||||||||||||||||||||||||||||
| Other | (164) | — | — | — | 10 | (154) | |||||||||||||||||||||||||||||
| Total Segment EBITDA | $ | 1,093 | $ | — | $ | 3 | $ | — | $ | 10 | $ | 1,106 | |||||||||||||||||||||||
17
NOTE 3 – ADJUSTED NET INCOME (LOSS) ATTRIBUTABLE TO NEWS CORPORATION STOCKHOLDERS AND ADJUSTED EPS
The Company uses net income (loss) attributable to News Corporation stockholders from continuing operations and diluted earnings per share from continuing operations (“EPS”) excluding expenses related to U.K. Newspaper Matters, litigation charges, impairment and restructuring charges and “Other, net”, net of tax, recognized by the Company or its equity method investees, as well as the settlement of certain pre-Separation tax matters (“adjusted net income (loss) attributable to News Corporation stockholders” and “adjusted EPS,” respectively), to evaluate the performance of the Company’s operations exclusive of certain items that impact the comparability of results from period to period, as well as certain non-operational items. The calculation of adjusted net income (loss) attributable to News Corporation stockholders and adjusted EPS may not be comparable to similarly titled measures reported by other companies, since companies and investors may differ as to what type of events warrant adjustment. Adjusted net income (loss) attributable to News Corporation stockholders and adjusted EPS are not measures of performance under generally accepted accounting principles and should not be construed as substitutes for consolidated net income (loss) attributable to News Corporation stockholders from continuing operations and net income (loss) per share from continuing operations as determined under GAAP as a measure of performance. However, management uses these measures in comparing the Company’s historical performance and believes that they provide meaningful and comparable information to investors to assist in their analysis of our performance relative to prior periods and our competitors.
18
The following tables reconcile reported net income attributable to News Corporation stockholders from continuing operations and reported diluted EPS to adjusted net income attributable to News Corporation stockholders and adjusted EPS for the three and nine months ended March 31, 2026 and 2025:
| For the three months ended March 31, 2026 | For the three months ended March 31, 2025 | ||||||||||||||||||||||
| (in millions, except per share data) | Net income attributable to stockholders | EPS | Net income attributable to stockholders | EPS | |||||||||||||||||||
| Net income from continuing operations | $ | 121 | $ | 107 | |||||||||||||||||||
| Less: Net income attributable to noncontrolling interests from continuing operations | (32) | (26) | |||||||||||||||||||||
| Net income attributable to News Corporation stockholders from continuing operations | $ | 89 | $ | 0.16 | $ | 81 | $ | 0.14 | |||||||||||||||
| U.K. Newspaper Matters | — | — | 4 | 0.01 | |||||||||||||||||||
Impairment and restructuring charges | 18 | 0.03 | 13 | 0.02 | |||||||||||||||||||
| Other, net | 18 | 0.03 | 13 | 0.02 | |||||||||||||||||||
| Tax impact on items above | (6) | (0.01) | (15) | (0.02) | |||||||||||||||||||
| Impact of noncontrolling interest on items above | (1) | — | 2 | — | |||||||||||||||||||
| As adjusted | $ | 118 | $ | 0.21 | $ | 98 | $ | 0.17 | |||||||||||||||
| For the nine months ended March 31, 2026 | For the nine months ended March 31, 2025 | ||||||||||||||||||||||
| (in millions, except per share data) | Net income attributable to stockholders | EPS | Net income attributable to stockholders | EPS | |||||||||||||||||||
| Net income from continuing operations | $ | 513 | $ | 562 | |||||||||||||||||||
| Less: Net income attributable to noncontrolling interests from continuing operations | (119) | (135) | |||||||||||||||||||||
| Net income attributable to News Corporation stockholders from continuing operations | $ | 394 | $ | 0.70 | $ | 427 | $ | 0.75 | |||||||||||||||
| U.K. Newspaper Matters | 1 | — | 10 | 0.02 | |||||||||||||||||||
Impairment and restructuring charges | 67 | 0.12 | 51 | 0.09 | |||||||||||||||||||
| Other, net | 27 | 0.05 | (101) | (0.18) | |||||||||||||||||||
| Tax impact on items above | (22) | (0.04) | (18) | (0.03) | |||||||||||||||||||
| Impact of noncontrolling interest on items above | — | — | 35 | 0.06 | |||||||||||||||||||
| As adjusted | $ | 467 | $ | 0.83 | $ | 404 | $ | 0.71 | |||||||||||||||
19
NOTE 4 – CONSTANT CURRENCY REVENUES
The Company believes that the presentation of revenues excluding the impact of foreign currency fluctuations (“constant currency revenues”) provides useful information regarding the performance of the Company’s core business operations exclusive of distortions between periods caused by the unpredictability and volatility of currency fluctuations. The Company calculates the impact of foreign currency fluctuations for businesses reporting in currencies other than the U.S. dollar as described in Note 2.
Constant currency revenues are not measures of performance under generally accepted accounting principles and should not be construed as substitutes for revenues as determined under GAAP as measures of performance. However, management uses these measures in comparing the Company’s historical performance and believes that they provide meaningful and comparable information to investors to assist in their analysis of our performance relative to prior periods and our competitors.
The following tables reconcile reported revenues to constant currency revenues for the three and nine months ended March 31, 2026:
Q3 Fiscal 2025 | Q3 Fiscal 2026 | FX impact | Q3 Fiscal 2026 constant currency | % Change - reported | % Change - constant currency | ||||||||||||||||||||||||||||||
| ($ in millions) | Better/(Worse) | ||||||||||||||||||||||||||||||||||
| Consolidated results: | |||||||||||||||||||||||||||||||||||
| Circulation and subscription | $ | 755 | $ | 809 | $ | 28 | $ | 781 | 7 | % | 3 | % | |||||||||||||||||||||||
| Advertising | 308 | 322 | 14 | 308 | 5 | % | — | % | |||||||||||||||||||||||||||
| Consumer | 492 | 530 | 12 | 518 | 8 | % | 5 | % | |||||||||||||||||||||||||||
| Real estate | 318 | 365 | 24 | 341 | 15 | % | 7 | % | |||||||||||||||||||||||||||
| Other | 136 | 159 | 10 | 149 | 17 | % | 10 | % | |||||||||||||||||||||||||||
| Total revenues | $ | 2,009 | $ | 2,185 | $ | 88 | $ | 2,097 | 9 | % | 4 | % | |||||||||||||||||||||||
| Dow Jones: | |||||||||||||||||||||||||||||||||||
| Circulation and subscription | $ | 478 | $ | 511 | $ | 7 | $ | 504 | 7 | % | 5 | % | |||||||||||||||||||||||
| Advertising | 86 | 91 | — | 91 | 6 | % | 6 | % | |||||||||||||||||||||||||||
| Other | 11 | 17 | — | 17 | 55 | % | 55 | % | |||||||||||||||||||||||||||
| Total Dow Jones segment revenues | $ | 575 | $ | 619 | $ | 7 | $ | 612 | 8 | % | 6 | % | |||||||||||||||||||||||
| Digital Real Estate Services: | |||||||||||||||||||||||||||||||||||
| Circulation and subscription | $ | 1 | $ | 2 | $ | — | $ | 2 | 100 | % | 100 | % | |||||||||||||||||||||||
| Advertising | 36 | 40 | 1 | 39 | 11 | % | 8 | % | |||||||||||||||||||||||||||
| Real estate | 318 | 365 | 24 | 341 | 15 | % | 7 | % | |||||||||||||||||||||||||||
| Other | 51 | 66 | 6 | 60 | 29 | % | 18 | % | |||||||||||||||||||||||||||
| Total Digital Real Estate Services segment revenues | $ | 406 | $ | 473 | $ | 31 | $ | 442 | 17 | % | 9 | % | |||||||||||||||||||||||
| REA Group revenues | $ | 271 | $ | 325 | $ | 31 | $ | 294 | 20 | % | 8 | % | |||||||||||||||||||||||
20
Q3 Fiscal 2025 | Q3 Fiscal 2026 | FX impact | Q3 Fiscal 2026 constant currency | % Change - reported | % Change - constant currency | ||||||||||||||||||||||||||||||
| ($ in millions) | Better/(Worse) | ||||||||||||||||||||||||||||||||||
| Book Publishing: | |||||||||||||||||||||||||||||||||||
| Consumer | $ | 492 | $ | 530 | $ | 12 | $ | 518 | 8 | % | 5 | % | |||||||||||||||||||||||
| Other | 22 | 25 | — | 25 | 14 | % | 14 | % | |||||||||||||||||||||||||||
| Total Book Publishing segment revenues | $ | 514 | $ | 555 | $ | 12 | $ | 543 | 8 | % | 6 | % | |||||||||||||||||||||||
| News Media: | |||||||||||||||||||||||||||||||||||
| Circulation and subscription | $ | 276 | $ | 296 | $ | 21 | $ | 275 | 7 | % | — | % | |||||||||||||||||||||||
| Advertising | 186 | 191 | 13 | 178 | 3 | % | (4) | % | |||||||||||||||||||||||||||
| Other | 52 | 51 | 4 | 47 | (2) | % | (10) | % | |||||||||||||||||||||||||||
| Total News Media segment revenues | $ | 514 | $ | 538 | $ | 38 | $ | 500 | 5 | % | (3) | % | |||||||||||||||||||||||
21
Q3 YTD Fiscal 2025 | Q3 YTD Fiscal 2026 | FX impact | Q3 YTD Fiscal 2026 constant currency | % Change - reported | % Change - constant currency | ||||||||||||||||||||||||||||||
| ($ in millions) | Better/(Worse) | ||||||||||||||||||||||||||||||||||
| Consolidated results: | |||||||||||||||||||||||||||||||||||
| Circulation and subscription | $ | 2,243 | $ | 2,383 | $ | 45 | $ | 2,338 | 6 | % | 4 | % | |||||||||||||||||||||||
| Advertising | 1,014 | 1,028 | 20 | 1,008 | 1 | % | (1) | % | |||||||||||||||||||||||||||
| Consumer | 1,585 | 1,647 | 25 | 1,622 | 4 | % | 2 | % | |||||||||||||||||||||||||||
| Real estate | 1,052 | 1,136 | 19 | 1,117 | 8 | % | 6 | % | |||||||||||||||||||||||||||
| Other | 449 | 497 | 9 | 488 | 11 | % | 9 | % | |||||||||||||||||||||||||||
| Total revenues | $ | 6,343 | $ | 6,691 | $ | 118 | $ | 6,573 | 5 | % | 4 | % | |||||||||||||||||||||||
| Dow Jones: | |||||||||||||||||||||||||||||||||||
| Circulation and subscription | $ | 1,398 | $ | 1,499 | $ | 15 | $ | 1,484 | 7 | % | 6 | % | |||||||||||||||||||||||
| Advertising | 292 | 309 | — | $ | 309 | 6 | % | 6 | % | ||||||||||||||||||||||||||
| Other | 37 | 45 | — | $ | 45 | 22 | % | 22 | % | ||||||||||||||||||||||||||
| Total Dow Jones segment revenues | $ | 1,727 | $ | 1,853 | $ | 15 | $ | 1,838 | 7 | % | 6 | % | |||||||||||||||||||||||
| Digital Real Estate Services: | |||||||||||||||||||||||||||||||||||
| Circulation and subscription | $ | 5 | $ | 6 | $ | — | $ | 6 | 20 | % | 20 | % | |||||||||||||||||||||||
| Advertising | 109 | 121 | 1 | $ | 120 | 11 | % | 10 | % | ||||||||||||||||||||||||||
| Real estate | 1,052 | 1,136 | 19 | $ | 1,117 | 8 | % | 6 | % | ||||||||||||||||||||||||||
| Other | 170 | 200 | 5 | $ | 195 | 18 | % | 15 | % | ||||||||||||||||||||||||||
| Total Digital Real Estate Services segment revenues | $ | 1,336 | $ | 1,463 | $ | 25 | $ | 1,438 | 10 | % | 8 | % | |||||||||||||||||||||||
| REA Group revenues | $ | 932 | $ | 1,020 | $ | 25 | $ | 995 | 9 | % | 7 | % | |||||||||||||||||||||||
| Book Publishing: | |||||||||||||||||||||||||||||||||||
| Consumer | 1,585 | 1,647 | 25 | $ | 1,622 | 4 | % | 2 | % | ||||||||||||||||||||||||||
| Other | 70 | 75 | — | $ | 75 | 7 | % | 7 | % | ||||||||||||||||||||||||||
| Total Book Publishing segment revenues | $ | 1,655 | $ | 1,722 | $ | 25 | $ | 1,697 | 4 | % | 3 | % | |||||||||||||||||||||||
| News Media: | |||||||||||||||||||||||||||||||||||
| Circulation and subscription | $ | 840 | $ | 878 | $ | 30 | $ | 848 | 5 | % | 1 | % | |||||||||||||||||||||||
| Advertising | 613 | 598 | 19 | $ | 579 | (2) | % | (6) | % | ||||||||||||||||||||||||||
| Other | 172 | 177 | 4 | $ | 173 | 3 | % | 1 | % | ||||||||||||||||||||||||||
| Total News Media segment revenues | $ | 1,625 | $ | 1,653 | $ | 53 | $ | 1,600 | 2 | % | (2) | % | |||||||||||||||||||||||
22
FAQ
How did News Corp (NWS) perform financially in Q3 fiscal 2026?
News Corp delivered solid Q3 fiscal 2026 results, with revenue rising 9% to $2.19 billion and net income from continuing operations increasing 13% to $121 million. Total Segment EBITDA climbed 18% to $343 million, and diluted EPS from continuing operations reached $0.16, with adjusted EPS at $0.21.
Which segments drove News Corp (NWS) revenue growth this quarter?
Growth was led by Digital Real Estate Services, Dow Jones and Book Publishing. Digital Real Estate revenues rose 17% to $473 million, Dow Jones increased 8% to $619 million, and Book Publishing grew 8% to $555 million. News Media revenue grew 5% to $538 million but saw weaker profitability.
How are News Corp’s (NWS) digital and subscription businesses performing?
Digital and subscription businesses are expanding strongly. At Dow Jones, digital revenues were 84% of segment revenue, and total consumer digital-only subscriptions grew 9% to about 6.1 million. The Wall Street Journal digital-only subscriptions increased 11% to 4.3 million, representing 92% of its total subscriptions.
What were News Corp’s (NWS) cash flow and capital allocation highlights year-to-date?
For the nine months ended March 31, 2026, News Corp generated $815 million in net cash from operating activities from continuing operations and free cash flow of $535 million. The company increased capital expenditures to $280 million and repurchased $456 million of its own shares over the same period.
How did the Digital Real Estate Services segment perform for News Corp (NWS)?
Digital Real Estate Services delivered strong growth, with revenues up 17% to $473 million and Segment EBITDA up 25% to $155 million. REA Group revenues grew 20% to $325 million, aided by currency and Australian residential strength, while Move (Realtor.com) revenues rose 10% to $148 million.
What challenges did News Corp (NWS) face in the News Media segment?
News Media revenues increased 5% to $538 million, mainly from favorable currency, pricing and digital subscriber growth. However, Segment EBITDA fell 55% to $15 million, impacted by lower contribution from News UK and costs related to launching the California Post, leading to weaker segment profitability.