News Corp reported fiscal second‑quarter 2026 results that surpassed consensus expectations, with revenue rising to $2.36 billion—an increase of 6% from the same period a year earlier—and total segment EBITDA reaching $521 million, up 9% year‑over‑year. Adjusted earnings per share came in at $0.40, beating the $0.36 consensus by $0.04 or 11%, while revenue beat the $2.30 billion estimate by $60 million, a 2.6% surprise.
The growth was driven by strong performance in the company’s high‑margin digital pillars. Dow Jones revenue climbed 8% to $648 million, with segment EBITDA expanding 10% to $191 million and margins approaching 30%. Digital Real Estate Services also grew 8% to $511 million, with EBITDA up 11% to $206 million. Book Publishing revenue increased 6% to $633 million, but its EBITDA slipped 2% due to a $16 million inventory write‑off at HarperCollins’ international operations. News Media revenue remained flat at $570 million, with digital subscriber gains offset by a decline in print advertising.
Net income from continuing operations fell 21% year‑over‑year to $242 million, largely because the company did not receive the $87 million gain from the sale of PropertyGuru to REA Group in the prior year. The one‑time write‑off in Book Publishing and the absence of the prior‑year gain contributed to the lower net income, even though adjusted EPS and revenue both beat expectations.
Management maintained its outlook for the remainder of the fiscal year, noting that the company sees “favorable signs for the second half” and that prospects for the third quarter are “auspicious.” The company’s accelerated share‑buyback program, which repurchased $172 million of shares in Q2, reflects confidence in its cash position and a commitment to shareholder value. Guidance for the full year remains unchanged, but the company highlighted continued investment in AI‑enabled content monetization and the expansion of its premium subscription offerings.
Investor reaction was muted, with the stock trading near a 12‑month low after the release. Analysts cited the year‑over‑year decline in reported net income and the impact of one‑time charges as key concerns, even as the company’s core digital segments showed robust growth. The market’s focus on reported net income over adjusted figures underscores the importance of non‑operational items in evaluating earnings quality.
CEO Robert Thomson emphasized the strategic advantage of News Corp’s “provenance‑guaranteed” content in an AI‑driven landscape, stating that the company is positioning itself to monetize premium content through partnerships and licensing. He also highlighted the company’s strong cash position, which supports the accelerated buyback program and provides flexibility for future strategic initiatives.
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