News Corp Q3 Fiscal 2026 Revenues Up 9%, Net Income Rises 13%, Strong Segment EBITDA Growth

Revenue and Profit Growth Fuel Confidence

News Corporation (ASX:NWS) delivered a compelling third quarter for fiscal 2026, with total revenues up 9% year-on-year to $2.19 billion and net income from continuing operations rising 13% to $121 million. The company’s Total Segment EBITDA jumped 18% to $343 million, underscoring operational leverage across its core businesses. Adjusted earnings per share climbed to $0.21 from $0.17, reflecting both top-line growth and margin expansion.

Chief Executive Robert Thomson emphasised the strength of the quarter as evidence of a business transformation underway, buoyed by resilient growth engines that include digital real estate, information services, and publishing. Thomson also reiterated confidence in the company’s intrinsic value, noting an accelerated share buyback program that aims to capitalise on perceived undervaluation.

Dow Jones Powers Forward with Digital Subscriptions and Compliance Growth

Dow Jones revenues rose 8% to $619 million, fuelled by a 19% surge in Risk & Compliance revenues and 13% growth in digital advertising. The segment’s digital revenues now represent 84% of total revenues, up from 82% the previous year. Consumer digital-only subscriptions increased 9% to nearly 6.1 million, with The Wall Street Journal’s digital subscriber base growing 11% to 4.3 million. This subscription momentum supports Dow Jones’ pathway to $1 billion in annual Segment EBITDA within five years, a target unveiled in a March investor briefing.

Advertising revenues at Dow Jones also grew 6%, driven by digital gains that offset declines in print. The segment’s EBITDA improved 11% to $147 million despite higher employee costs, signalling effective cost management alongside growth. This robust performance builds on the company’s strategic emphasis on digital transformation and premium content monetisation, as evidenced by recent partnerships with Meta and OpenAI to leverage AI inputs.

Digital Real Estate Services and Book Publishing Show Strong Momentum

Digital Real Estate Services revenues increased 17% to $473 million, led by REA Group’s 20% revenue growth to $325 million, boosted by favourable foreign exchange and strong Australian residential market performance. Move, the operator of Realtor.com®, contributed a 10% revenue increase, driven by premium offerings and expansion into growth adjacencies. Segment EBITDA jumped 25% to $155 million, reflecting higher contributions from both REA Group and Move. The segment’s adjusted revenues and EBITDA rose 8% and 16%, respectively.

Book Publishing revenues climbed 8% to $555 million, propelled by strong sales of Rachel Reid’s Game Changers, linked to the Heated Rivalry streaming series release. Digital sales grew 11%, now accounting for 26% of consumer revenues, while segment EBITDA improved 14% to $73 million. The publishing arm’s growth underscores the value of cross-media synergies and digital content expansion within News Corp’s diversified portfolio.

Challenges in News Media and Content Protection Efforts

News Media revenues edged up 5% to $538 million, aided by an 8% positive foreign currency impact, but adjusted revenues declined 2%. Segment EBITDA fell sharply by 55% to $15 million, weighed down by lower contributions from News UK and costs related to the newly launched California Post. Digital revenues now represent 40% of News Media segment revenues, with digital subscribers growing modestly across key properties.

Thomson highlighted the company’s vigilance against illicit digital content scraping, describing efforts to pursue “baleful bad-boy bots” and their buyers. This stance reflects ongoing challenges in protecting proprietary content amid the rise of AI and digital distribution, a theme increasingly relevant across media companies.

Cash Flow and Capital Allocation Remain Solid

Free cash flow for the nine months ended March 31 stood at $535 million, slightly down from $539 million the prior year, primarily due to increased capital expenditures. Operating cash flows rose $26 million to $815 million, supporting the company’s ongoing investments and buyback initiatives. News Corp anticipates strong free cash flow growth for the full fiscal year despite these higher capital costs.

The company’s balance sheet remains robust with $2.17 billion in cash and equivalents and manageable borrowings. The accelerated share repurchase program, combined with strategic AI partnerships, positions News Corp to capitalise on digital transformation opportunities while managing legacy media headwinds.

News Corp’s Q3 results build on earlier quarterly momentum, following a 6% revenue rise in Q2 and steady gains in digital subscriptions and advertising, as detailed in its recent Q2 FY26 revenue climb and H1 2026 revenue growth reports. The company’s focus on AI collaborations and content provenance may prove critical as the media landscape evolves rapidly.