News Corp Reports $2.185 Billion Revenue and $89 Million Net Income in Q3 FY2026

Revenue Growth Driven by Digital Real Estate and Dow Jones

News Corporation (ASX:NWS, Nasdaq:NWS, NWSA) posted a 9% increase in quarterly revenues to $2.185 billion for the three months ended March 31, 2026, supported by strong performances in its Digital Real Estate Services and Dow Jones segments. REA Group and Move, the company’s key real estate assets, contributed significant revenue growth, with REA Group’s Australian residential revenues boosted by price increases and product expansion, while Move focused on premium offerings like RealPRO SelectSM. Dow Jones saw a 7% rise in circulation and subscription revenues, driven by digital subscription growth and price increases across its professional information services. Digital revenues now represent 84% of Dow Jones’s total, underscoring the company’s ongoing digital transition.

Advertising revenues also edged higher, particularly in technology and financial services sectors, with digital advertising accounting for 67% of total advertising revenue in the quarter. The impact of foreign currency fluctuations added approximately $88 million, or 5%, to revenues in the quarter, reflecting a weaker US dollar against key currencies.

Segment EBITDA climbed 18% to $343 million, led by the Digital Real Estate Services segment’s 25% increase and Dow Jones’s 11% rise, highlighting operational leverage despite cost pressures. The company’s book publishing segment also saw an 8% revenue increase, driven by physical and digital book sales, including titles from Rachel Reid’s Game Changers series, although segment EBITDA declined 7% over nine months due to higher costs and one-time write-offs.

Net Income Declines Amid Rising Costs and Restructuring Charges

Despite revenue and EBITDA growth, net income attributable to News Corp stockholders fell 14% to $89 million in the quarter, reflecting higher operating expenses, increased restructuring charges, and foreign currency headwinds. Operating expenses rose 5% to $952 million, driven by higher employee costs at Dow Jones, costs related to higher sales volumes at HarperCollins, and negative currency impacts at the News Media segment. Selling, general and administrative expenses increased 9%, with notable rises in marketing costs and broker commissions at the Digital Real Estate Services segment and costs associated with the recently launched California Post at News Media.

Impairment and restructuring charges increased 38% to $18 million in the quarter, including $14 million in restructuring costs. The company’s effective tax rate was higher than the US statutory rate, influenced by foreign operations subject to higher tax rates and valuation allowances against certain tax benefits.

Net income from continuing operations was $121 million, up 13% year-on-year, but the absence of discontinued operations income, which included Foxtel in the prior year, contributed to the overall net income decline. The company’s segment EBITDA growth and net income trends align with its focus on strategic investments and cost management amid a complex macroeconomic environment.

Capital Management and Credit Facilities

News Corp completed a $1.5 billion amended and restated credit agreement in March 2026, extending the maturity of its credit facilities to five years and increasing revolving credit capacity from $750 million to $1 billion. The new facilities include a $1 billion unsecured revolving credit facility and a $500 million unsecured term loan, with flexible amortization schedules and customary covenants, including a leverage ratio cap of 3.5x adjusted operating income.

The company repurchased $193 million of its Class A and Class B common stock during the quarter under its ongoing stock repurchase programs, which have a remaining authorized amount of approximately $851 million under the 2025 program. Additionally, REA Group announced a separate A$200 million share buyback program, repurchasing A$70 million in the quarter, with A$130 million remaining authorized.

In February 2026, News Corp declared a semi-annual cash dividend of $0.10 per share, paid in April, continuing its shareholder return strategy. The company’s liquidity position remains robust, with $2.2 billion in cash and equivalents and $1 billion undrawn on its revolving credit facility, supporting operational and strategic flexibility.

Legal Proceedings and Risk Factors

News Corp continues to face various legal proceedings, including class action lawsuits related to its subsidiary Oil Price Information Service and antitrust claims involving HarperCollins. While some settlements have been preliminarily approved, outcomes remain uncertain and could impact future results. The company has accrued liabilities where losses are probable and estimable but acknowledges the inherent unpredictability of such matters.

Management reports no material changes to risk factors or internal controls in this quarter. The company is monitoring geopolitical tensions, such as the conflict in Iran, which have yet to materially affect operations but could influence macroeconomic conditions and consumer behaviour.

News Corp’s financial results reflect a balancing act between growth in digital and real estate services, cost pressures, and strategic capital management, all underpinned by ongoing legal and geopolitical uncertainties. The company’s next key milestones include monitoring the impact of restructuring initiatives, execution of share buybacks, and navigating the evolving regulatory landscape.

This quarter’s performance builds on the company’s recent solid third quarter with revenues climbing 9% and follows dividend confirmations in USD 0.10 dividend for April payment, positioning News Corp in a cautious but growth-oriented stance.