News Corp FY26 Revenues Rise 7% to $9.03 Billion with 15% Earnings Growth

Revenue Growth Driven by Digital and News Segments

News Corporation’s fiscal 2026 results reveal a steady expansion across its diversified media and information services portfolio. Total revenues climbed 7% to $9.03 billion, with the Digital Real Estate Services segment leading the charge, posting a 12% increase to $2.02 billion. This growth was primarily fueled by REA Group’s robust Australian residential revenues and Move’s enhanced premium offerings in the U.S. market.

The Dow Jones segment, a cornerstone of News Corp’s news and information services, also contributed significantly, with revenues rising 7% to $2.5 billion. Circulation and subscription revenues increased by 7%, buoyed by digital subscription growth and price adjustments, while advertising revenues rose 6%, driven by gains in the technology and financial sectors.

Profitability and Segment Performance

Segment EBITDA expanded 15% to $1.63 billion, reflecting operational leverage and revenue growth. Digital Real Estate Services saw a 23% jump in EBITDA to $741 million, benefiting from higher revenues and the absence of prior year acquisition-related costs. Dow Jones segment EBITDA improved 13% to $663 million, despite increased employee and marketing expenses.

Book Publishing revenues grew 6% to $2.29 billion, supported by strong physical book sales and acquisitions, though segment EBITDA dipped slightly by 3% due to increased costs. News Media revenues edged up 3% to $2.23 billion, with subscription growth offsetting a 2% decline in advertising revenue. Segment EBITDA for News Media contracted 9%, impacted by new initiatives like the California Post and elevated costs linked to the FIFA World Cup.

Balance Sheet Strength and Capital Management

News Corp ended FY26 with $2.1 billion in cash and equivalents and maintained $1 billion in undrawn credit facilities, providing ample liquidity amid ongoing investments in digital transformation and AI integration. The company completed its $1 billion stock repurchase program and launched a new $1 billion buyback plan, with $667 million remaining authorization. REA Group separately executed a A$200 million share buyback during the year.

Net income from continuing operations rose 15% to $743 million, driven by higher EBITDA and interest income. However, net income attributable to News Corp stockholders declined 51% to $573 million, reflecting the absence of $692 million in discontinued operations income recognized in the prior year from the Foxtel sale.

Navigating Competitive and Regulatory Challenges

News Corp’s risk disclosures highlight intensifying competition from AI-powered platforms and evolving consumer behaviours that threaten traditional media revenue streams. The company is actively investing in AI to enhance product offerings and operational efficiency but acknowledges uncertainties around regulatory developments, intellectual property protections, and cybersecurity risks.

Management confirmed effective internal controls over financial reporting and continues to monitor geopolitical tensions and macroeconomic headwinds, including inflationary pressures and housing market softness, particularly in the U.S. real estate sector impacting Move’s performance.

What to Watch Next

Investors will be keen to track how News Corp leverages its digital scale and AI capabilities to offset advertising pressures and content commoditisation. The company’s ability to sustain subscription growth, particularly in Dow Jones and News Media, alongside managing costs in Book Publishing and new initiatives like the California Post, will be critical. Upcoming quarterly updates will also reveal the impact of foreign currency fluctuations and any further capital deployment under the buyback program.