News Corp posted a 7% revenue increase to $9.028 billion in fiscal 2026, driven by gains across its key segments, while net income attributable to stockholders fell 51% due to absence of prior discontinued operations income.
- 7% revenue growth to $9.028 billion
- Net income from continuing operations up 15%
- Net income attributable to stockholders down 51%
- Segment EBITDA rises 15% to $1.627 billion
- Stock repurchase program extended with $667 million remaining
Top-Line Momentum Masks Profit Pressure
News Corporation (ASX:NWS, Nasdaq:NWS, NWSA) reported a 7% revenue increase to US$9.028 billion for the fiscal year ended June 30, 2026, buoyed by growth across its Digital Real Estate Services, Dow Jones, Book Publishing, and News Media segments. However, net income attributable to News Corp stockholders halved to US$573 million, weighed down by the absence of US$692 million in discontinued operations income from the prior year’s Foxtel sale.
Net income from continuing operations rose 15% to US$743 million, reflecting operational improvements, while segment EBITDA climbed 15% to US$1.627 billion. The company declared total dividends of US$0.20 per share, unchanged from the prior year, with the final unfranked dividend payable in October 2026.
Segment Performances Highlight Diverse Growth Drivers
The Digital Real Estate Services segment led revenue growth with a 12% jump to US$2.016 billion, driven by REA Group’s Australian residential market gains and Move’s premium offerings in the U.S. REA Group’s financial services and add-on products also contributed, despite divestitures in India.
Dow Jones posted 7% revenue growth to US$2.497 billion, lifted by higher circulation and subscription sales, including digital subscriptions, and a 6% increase in advertising revenue, with digital advertising now representing 67% of segment advertising sales. The segment’s professional information products, such as Dow Jones Risk & Compliance and Dow Jones Energy, saw strong price increases and new customer additions.
Book Publishing revenues rose 6% to US$2.288 billion, boosted by physical book sales from titles like Rachel Reid’s Game Changers series and growth in Christian publishing. Digital sales accounted for approximately 23% of consumer revenues. News Media revenues increased 3% to US$2.227 billion, supported by digital subscriber growth and favorable foreign currency movements, offsetting declines in print advertising.
Costs and Investments Weigh on Profitability
Operating expenses rose 4% to US$3.892 billion, with increases mainly at Book Publishing due to higher sales volume and a one-time inventory write-off, and at News Media driven by foreign exchange impacts and new initiatives like the California Post launch. Selling, general and administrative expenses increased 6% to US$3.509 billion, reflecting higher employee, marketing, broker commission costs and FIFA World Cup-related expenses in News Broadcasting.
Depreciation and amortization rose 6% to US$485 million, largely due to capitalized software investments at Digital Real Estate Services and Dow Jones. The company recorded US$113 million in impairment and restructuring charges, down from US$132 million the prior year.
Balance Sheet and Capital Management
News Corp ended the fiscal year with US$2.1 billion in cash and cash equivalents and US$2.0 billion in borrowings, including a new five-year US$1.5 billion credit facility completed in March 2026. The facility includes a US$1 billion revolving credit line and a US$500 million term loan, with ample undrawn capacity of US$1 billion.
The company completed its US$1 billion 2021 stock repurchase program during the year and launched a new US$1 billion program in July 2025, with US$667 million remaining authorization as of June 30, 2026. REA Group separately completed an A$200 million share buyback program.
Risks and Strategic Challenges Remain
News Corp continues to face intensifying competition from digital platforms and AI-driven content providers, putting pressure on its traditional advertising and subscription revenues. The company is actively investing in AI-powered products and new licensing arrangements but acknowledges the uncertainties and costs associated with these initiatives.
Regulatory compliance, data privacy laws, supply chain disruptions, and geopolitical tensions, particularly in energy markets, add layers of risk to the business. The company maintains robust cybersecurity programs and effective internal controls, as confirmed by its independent auditor Ernst & Young LLP.
Looking ahead, News Corp’s ability to sustain revenue growth while managing rising costs and navigating a rapidly evolving media landscape will be critical. The company’s upcoming dividend payment and remaining share repurchase capacity will be closely watched by investors seeking clarity on capital returns.
Bottom Line?
News Corp’s solid revenue growth contrasts with profit pressures and strategic risks, underscoring the challenge of monetizing premium content amid digital disruption.
Questions in the middle?
- How will News Corp’s AI initiatives impact its competitive positioning and revenue streams over the next fiscal year?
- What are the potential effects of evolving digital advertising standards and privacy regulations on News Corp’s advertising revenues?
- To what extent can the company sustain dividend payments and share buybacks amid rising costs and market uncertainties?