News Corporation reported a 4% revenue increase to US$4.506 billion for the half-year ended December 2025, while net income declined 9% to US$305 million. The company declared an interim dividend and continued its stock repurchase program amid mixed segment performances and ongoing legal challenges.
- 4% revenue growth to US$4.506 billion in H1 2026
- 9% decline in net income to US$305 million
- Interim unfranked dividend of US$0.10 per share declared
- Strong segment growth in Dow Jones, Digital Real Estate, and Book Publishing
- Ongoing legal contingencies and restructuring charges disclosed
Overview of Financial Performance
News Corporation, the global diversified media and information services company, has released its half-year financial results for the period ending 31 December 2025. The company reported revenues of US$4.506 billion, marking a 4% increase compared to the prior corresponding period. However, net income fell by 9% to US$305 million, reflecting a complex interplay of rising costs, restructuring charges, and other operational factors.
The board declared an interim unfranked dividend of US$0.10 per share, consistent with the prior year, signalling confidence in the company’s cash flow despite the net income decline. News Corp’s net tangible asset backing per share rose significantly to US$5.51 from US$3.09, largely influenced by the prior sale of Foxtel and receipt of a minority equity interest in DAZN.
Segment Highlights and Operational Insights
Segment performance was mixed but generally positive. Dow Jones, representing 27% of consolidated revenues, saw an 8% revenue increase driven by higher circulation, subscription, and advertising revenues, with digital products now comprising over 80% of segment revenues. Digital Real Estate Services, including REA Group and Move, reported an 8% revenue uplift, supported by price increases and growth in premium offerings, alongside higher broker commissions and employee costs.
Book Publishing revenues rose 6%, bolstered by recent acquisitions and strong physical book sales, particularly in Christian Publishing. However, segment EBITDA declined due to a one-time inventory write-off and increased employee costs. News Media revenues remained flat, with circulation and subscription growth offset by declines in print advertising. Cost-saving initiatives and lower Talk costs helped improve segment EBITDA by 9% over the prior year.
Liquidity, Capital Management, and Shareholder Returns
News Corp maintains a robust liquidity position with US$2.1 billion in cash and cash equivalents and undrawn credit facilities of US$750 million. The company’s stock repurchase programs remain active, with approximately US$1.044 billion authorized for future buybacks. During the half-year, News Corp repurchased US$264 million worth of shares and paid US$104 million in dividends.
Capital expenditures increased modestly to US$180 million, reflecting investments such as HarperCollins’ new warehouse equipment lease. Free cash flow improved to US$136 million, driven by higher operating cash flows despite increased capital spending.
Legal and Regulatory Landscape
News Corp disclosed ongoing legal proceedings, including class action settlements and investigations related to its subsidiaries. The company maintains provisions for potential liabilities but notes significant uncertainty regarding outcomes. It continues to monitor regulatory developments, including tax reforms and global minimum tax proposals, which currently are not expected to materially impact its effective tax rate.
Executive Leadership Update
Alongside financial disclosures, News Corp filed an amended and restated employment agreement for Ruth Allen, its Executive Vice President and Chief Human Resources Officer. The agreement extends through 2028, with enhanced compensation and benefits reflecting her strategic role in the company’s human capital management.
Overall, News Corporation’s half-year results reflect steady top-line growth amid operational challenges and strategic repositioning. The company’s diversified portfolio continues to generate resilient revenues, while cost management and capital allocation remain key focus areas as it navigates a dynamic media landscape.
Bottom Line?
As News Corp balances growth with margin pressures and legal uncertainties, investors will watch closely for how strategic initiatives translate into sustained profitability.
Questions in the middle?
- How will ongoing legal proceedings impact News Corp’s future financial performance and reputation?
- What are the prospects for margin improvement in Book Publishing amid rising costs and inventory challenges?
- How might the new employment agreement for the Chief Human Resources Officer influence talent retention and corporate culture?