News Corp Q1 FY2026: $2.144B Revenue, $150M Net Income, $94M Buybacks

Overview of Financial Performance

News Corporation has kicked off fiscal 2026 with a solid quarterly performance, reporting revenues of $2.144 billion for the three months ended September 30, 2025, marking a 2% increase over the prior year. This growth was primarily fueled by stronger circulation and subscription revenues at Dow Jones and higher revenues at the Digital Real Estate Services segment, which includes REA Group and Move. However, the Book Publishing segment faced a slight revenue decline amid softer consumer spending and shifting title mixes.

Net income attributable to News Corporation stockholders rose 4% to $150 million, reflecting a combination of revenue growth and disciplined cost management. Operating expenses decreased marginally by 1%, while selling, general and administrative expenses increased by 5%, driven by higher employee and marketing costs, notably at Dow Jones and HarperCollins.

Segment Highlights and Operational Insights

The Dow Jones segment, representing 27% of consolidated revenues, saw a 6% revenue increase to $586 million, supported by a 7% rise in circulation and subscription revenues. Digital subscriptions grew robustly, with The Wall Street Journal’s digital-only subscriptions up 11% year-over-year. Advertising revenues remained flat, balancing higher digital ad sales against print declines.

Digital Real Estate Services contributed $479 million in revenues, up 5%, with Move and REA Group both posting gains. Move’s focus on premium advertising products helped offset a slight decline in lead volumes due to macroeconomic pressures in the U.S. housing market. REA Group benefited from price increases and growth in add-on products, despite some near-term headwinds in its India operations.

Book Publishing revenues declined 2% to $534 million, impacted by lower digital book sales and the absence of certain high-profile titles from the prior year. Segment EBITDA fell 28%, influenced by a $13 million write-off related to a book distributor’s closure and increased employee costs. Meanwhile, the News Media segment posted a modest 1% revenue increase to $545 million, with circulation and subscription revenues rising 2% and advertising revenues declining 4%. Cost savings initiatives and lower Talk costs contributed to a 67% jump in segment EBITDA.

Capital Management and Liquidity

News Corp remains financially robust, ending the quarter with $2.2 billion in cash and cash equivalents. The company continued its share repurchase program, buying back $94 million of Class A and Class B common stock during the quarter, and declared a semi-annual dividend of $0.10 per share. The Board’s dividend decisions will continue to weigh financial condition, earnings, and capital requirements.

Borrowings stood at $1.956 billion, with the company maintaining compliance with all debt covenants. Notably, HarperCollins entered a $120 million finance lease for new warehouse equipment to enhance operational efficiency. REA Group also amended its credit facility, reducing available commitments but retaining $200 million in undrawn capacity.

Legal and Operational Risks

News Corporation continues to manage various legal proceedings and contingencies, including class action lawsuits and regulatory inquiries, with provisions in place for probable losses. The company remains vigilant on these fronts, recognizing the potential reputational and financial impacts, though no material changes to risk factors were reported this quarter.

Looking ahead, the company is evaluating the impact of recently issued accounting standards and continues to monitor market conditions and regulatory developments that could influence its financial results.