NEWS CORPORATION REPORTS FIRST QUARTER RESULTS FOR FISCAL 2027
First quarter revenues were $2.28 billion, a 6% increase compared to $2.14 billion in the prior year, driven by growth at the Digital Real Estate Services, Book Publishing and Dow Jones segments, while net income in the quarter was $215 million, a 43% increase compared to $150 million in the prior year.
First quarter Total Segment EBITDA was $403 million, a 19% increase compared to $340 million in the prior year.
First quarter reported EPS were $0.29 as compared to $0.20 in the prior year - Adjusted EPS were $0.28 as compared to $0.22 in the prior year.
Dow Jones revenues for the first quarter rose a robust 8% compared to the prior year, driven by higher circulation and licensing revenues, 11% growth at Dow Jones Risk & Compliance and 8% growth at Dow Jones Energy.
REA Group revenues for the first quarter rose 13%, driven by positive foreign exchange impacts and double-digit growth in controllable buy yield.
, continued to scale profitability for the first quarter with 5% growth in revenues and improved operational efficiencies.
Book Publishing delivered 9% revenue growth for the quarter, supported by strong sales and continued growth in digital revenues.
News C orporation (“News Corp” or the “Company”) (Nasdaq: NWS, NWSA; ASX: NWS, NWSLV) today reported financial results for the three months ended September 30, 2026 .
“We began Fiscal 2027 with a record first quarter performance, as revenues increased 6 percent to $2.3 billion, net income expanded 43 percent to $215 million and Total Segment EBITDA surged 19 percent to $403 million, while our margins expanded meaningfully and earnings per share were 29 cents compared to 20 cents in the prior year. These results herald our fourteenth consecutive quarter of year-over-year profitability growth. Our three engines of growth - Digital Real Estate Services, Dow Jones and Book Publishing - collectively delivered robust results despite volatile economic conditions.
Our performance reflects the transformation of News Corp into a thriving, higher-margin business, digitally driven with peerless, profitable content. We believe we are primed for further growth in the AI age, as data centers, chips and water may be necessary components, but high quality content is the very essence of AI.
We remain vigilant in protecting that priceless intellectual property. We are pleased to have partners in OpenAI and Meta that recognize the importance of our content, and remain optimistic that other platforms will choose compensation over confiscation, principle over plunder. To that end, we will woo and we will sue.
We will continue to pursue growth and increased profitability with diligent cost discipline and prudent capital stewardship with the clear aim of creating value for all News Corp shareholders.”
The Company reported fiscal 2027 first quarter total revenues of $2.28 billion, a 6% increase compared to $2.14 billion in the prior year, primarily driven by higher revenues at Digital Real Estate Services, Book Publishing and Dow Jones. Results included a $43 million, or 2%, positive impact from foreign currency fluctuations. Adjusted 1 Revenues (which excludes the foreign currency impact, acquisitions and divestitures as defined in Note 2) increased 4% compared to the prior year.
Net income for the quarter was $215 million, a 43% increase compared to $150 million in the prior year, primarily driven by higher Total Segment EBITDA, as discussed below, and higher Other, net, primarily due to a gain related to the divestiture of REA India’s remaining business, partially offset by higher income tax expense.
The Company reported first quarter Total Segment EBITDA of $403 million, a 19% increase compared to $340 million in the prior year, primarily driven by the strong revenue growth discussed above. Adjusted Total Segment EBITDA (as defined in Note 2) increased 13%.
Net income per share attributable to News Corporation stockholders was $0.29 as compared to $0.20 in the prior year. Adjusted EPS (as defined in Note 3) were $0.28 compared to $0.22 in the prior year.
Revenues in the quarter increased $44 million, or 8%, compared to the prior year, driven by higher circulation and subscription revenues and higher digital advertising revenues. Digital revenues at Dow Jones in the quarter represented 85% of total revenues compared to 84% in the prior year. Adjusted Revenues increased 8%.
Circulation and subscription revenues increased $33 million, or 7%, reflecting higher circulation and licensing revenues and a 5% increase in professional information business revenues, led by 11% growth in Dow Jones Risk & Compliance revenues to $104 million and 8% growth in Dow Jones Energy revenues to $79 million. Circulation revenues increased 4% compared to the prior year driven by higher digital direct subscription ARPU and continued growth in digital-only subscriptions. Digital circulation revenues accounted for 76% of circulation revenues for the quarter, compared to 75% in the prior year. 2 During the first quarter, total average subscriptions to Dow Jones’ news products were over 6.9 million, an 8% increase compared to the prior year. Digital-only subscriptions to Dow Jones’ news products grew 10% to nearly 6.5 million. Total subscriptions to The Wall Street Journal grew 9% compared to the prior year, to 5.0 million average subscriptions in the quarter. Digital-only subscriptions to The Wall Street Journal grew 11% to nearly 4.7 million average subscriptions in the quarter, driven by growth in enterprise news subscriptions, and represented 93% of total Wall Street Journal subscriptions.
For the three months ended September 30, 2026 2025 % Change (in thousands, Better/(Wors… except %) The Wall Street Journal Digital-only 4,663 4,217 11 % subscriptio… Total 5,008 4,610 9 % subscriptio… Barron’s Group Digital-only 1,536 1,366 12 % subscriptio… Total 1,622 1,471 10 % subscriptio… Total News Products Digital-only 6,477 5,878 10 % subscriptio… Total 6,922 6,392 8 % subscriptio…
Advertising revenues for the quarter increased $8 million, or 9%, driven by a 12% increase in digital advertising revenues. Digital advertising accounted for 70% of total advertising revenues for the quarter, compared to 68% in the prior year.
Segment EBITDA for the quarter increased $16 million, or 11%, reflecting the higher revenues discussed above, partially offset by an increase in employee costs and the timing of marketing spend. Adjusted Segment EBITDA increased 11%.
Revenues in the quarter increased $50 million, or 10%, compared to the prior year, driven by higher revenues at both REA Group and Move. Segment EBITDA in the quarter increased $54 million, or 34%, compared to the prior year, due to higher contributions from both REA Group and Move. Adjusted Revenues and Adjusted Segment EBITDA increased 4% and 23%, respe ctively.
In the quarter, revenues at REA Group increased $42 million, or 13%, to $369 million, including a $27 million, or 8%, positive impact from foreign currency fluctuations, driven by higher Australian residential revenues primarily due to price increases, growth in add-on products and increased depth penetration, partially offset by unfavorable geographical mix. Australian national residential buy listing volumes in the quarter declined 2% compared to the prior year, with Sydney and Melbourne down 16%.
On October 23, 2026, REA Group hosted an investor briefing in Sydney. Materials, including a webcast, can be found on the REA Group Investor Relations website.
Move’s revenues in the quarter increased $8 million, or 5%, to $160 million, primarily as a result of higher sales of RealPRO Select SM , which drove both higher revenues per lead and annual contract value, and continued revenue growth in seller, new homes and rentals. Based on Move’s internal data, average monthly unique users of Realtor.com ® ’s web and mobile sites for the fiscal first quarter were 66 million, an 8% decrease compared to the prior year driven primarily by broader macroeconomic trends and a focus on higher quality leads, with lead volumes decreasing 11% compared to the prior year period. According to Comscore, monthly average visits for 3 the first quarter for Realtor.com ® were 263 million, and Realtor.com ® continues to lead the industry in engagement as measured by visits per unique user.
Revenues in the quarter increased $48 million, or 9%, compared to the prior year, driven by higher physical and digital book sales, reflecting strength in General Books and Children’s Publishing. Adjusted Revenues increased 8%.
Digital sales increased 6% compared to the prior year driven by an increase in audiobook sales. Digital sales represented 23% of consumer revenues for the first quarters of both fiscal 2027 and 2026. Backlist sales represented approximately 66% of consumer revenues in the quarter compared to 65% in the prior year.
Segment EBITDA for the quarter increased $17 million, or 29%, compared to the prior year, due to the higher revenues discussed above and the absence of a $13 million write-off of a customer receivable in the prior year, partially offset by higher costs due to higher sales volume and mix of titles. Adjusted Segment EBITDA increased 29%.
Revenues in the quarter decreased $5 million, or 1%, compared to the prior year, primarily due to lower other revenues and lower print advertising revenues, partially offset by a $17 million, or 3%, positive impact from foreign currency fluctuations. Adjusted Revenues for the segment decreased 4%.
Circulation and subscription revenues increased $8 million, or 3%, compared to the prior year, due to a $9 million, or 3%, positive impact from foreign currency fluctuations , increased cover and subscription pricing and higher content licensing revenues, partially offset by print volume declines.
Advertising revenues decreased $4 million, or 2%, compared to the prior year, primarily due to lower print advertising revenues, partially offset by a $5 million, or 3%, positive impact from foreign currency fluctuations.
In the quarter, Segment EBITDA decreased $12 million, or 40%, compared to the prior year, driven by the lower revenues discussed above. Adjusted Segment EBITDA decreased 40%.
Digital revenues represented 41% of News Media segment revenues in the quarter, compared to 38% in the prior year, and represented 40% of the combined revenues of the newspaper mastheads. Digital subscribers and users across key properties within the News Media segment are summarized below:
• Closing digital subscribers at News Corp Australia as of September 30, 2026 were 1,163,000 (1,006,000 for news mastheads), compared to 1,162,000 (993,000 for news mastheads) in the prior year (Source: Internal data).
• The Times and Sunday Times closing digital subscribers, including the Times Literary Supplement , as of September 30, 2026 were 686,000, compared to 640,000 in the prior year (Source: Internal data).
• The Sun ’s digital offering reached 57 million global monthly unique users in September 2026, compared to 77 million in the prior year (Source: Meta Pixel).
• New York Post ’s digital network reached 84 million monthly unique users in September 2026, compared to 94 million in the prior year (Source: Google Analytics). 4
The following table presents a reconciliation of net cash provided by operating activities from continuing operations to free cash flow:
Net cash provided by operating activities from continuing operations of $13 million for the three months ended September 30, 2026 was $72 million lower than net cash provided by operating activities from continuing operations of $85 million in the prior year, primarily due to the timing of working capital movements and higher tax payments, partially offset by higher Total Segment EBITDA, as discussed above.
Free cash flow in the three months ended September 30, 2026 was $(89) million compared to $4 million in the prior year. The decrease in free cash flow was primarily driven by lower cash provided by operating activities from continuing operations, as discussed above, and a $21 million increase in capital expenditures.
Free cash flow is a non-GAAP financial measure. Free cash flow is defined as net cash provided by (used in) operating activities from continuing operations, less capital expenditures. Free cash flow excludes cash flows from discontinued operations. Free cash flow may not be comparable to similarly titled measures reported by other companies, since companies and investors may differ as to what items should be included in the calculation of free cash flow.
Free cash flow does not represent the total increase or decrease in the cash balance for the period and should be considered in addition to, not as a substitute for, the net change in cash and cash equivalents as presented in the Company’s consolidated statements of cash flows prepared in accordance with GAAP, which incorporates all cash movements during the period.
The Company believes free cash flow provides useful information to management and investors about the Company’s liquidity and cash flow trends.
Adjusted Revenues, Total Segment EBITDA, Adjusted Total Segment EBITDA, Adjusted Segment EBITDA, adjusted net income attributable to News Corporation stockholders, adjusted EPS, constant currency revenues and free cash flow are non-GAAP financial measures contained in this earnings release. The Company believes these measures are important tools for investors and analysts to use in assessing the Company’s underlying business performance and to provide for more meaningful comparisons of the Company’s operating performance between periods. These measures also allow investors and analysts to view the Company’s business from the same perspective as Company management. These non-GAAP measures may be different than similar measures used by other companies and should be considered in addition to, not as a substitute for, measures of financial performance calculated in accordance with GAAP. Reconciliations for the differences between non-GAAP measures used in this earnings release and comparable financial measures calculated in accordance with U.S. GAAP are included in Notes 1, 2, 3 and 4 and the reconciliation of net cash provided by operating activities from continuing operations to free cash flow is included above.
5 News Corporation’s earnings conference call can be heard live at 5:00 p.m. EST on November 4, 2026. To listen to the call, please visit http://investors.newscorp.com.
This document contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding trends and uncertainties affecting the Company’s business, results of operations and financial condition, the Company’s strategy and strategic initiatives, including potential acquisitions, investments and dispositions, the Company’s cost savings initiatives and the outcome of contingencies such as litigation and investigations. These statements are based on management’s views and assumptions regarding future events and business performance as of the time the statements are made. Actual results may differ materially from these expectations due to the risks, uncertainties and other factors described in the Company’s filings with the Securities and Exchange Commission. More detailed information about factors that could affect future results is contained in our filings with the Securities and Exchange Commission. The “forward-looking statements” included in this document are made only as of the date of this document and we do not have and do not undertake any obligation to publicly update any “forward-looking statements” to reflect subsequent events or circumstances, and we expressly disclaim any such obligation, except as required by law or regulation.
News Corp (Nasdaq: NWS, NWSA; ASX: NWS, NWSLV) is a global, diversified media and information services company focused on creating and distributing authoritative and engaging content and other products and services. The company comprises businesses across a range of media, including: information services and news, digital real estate services and book publishing. Headquartered in New York, News Corp operates primarily in the United States, Australia, and the United Kingdom, and its content and other products and services are distributed and consumed worldwide. More information is available at: www.newscorp.com.
Investor Relations Corporate Communications Michael Florin Arthur Bochner 212-416-3363 646-422-9671 mflorin@newscorp.com abochner@newscorp.com
For the three months ended Revenues: September 30, 2026 2025 ────────────────────────────────────────────────────────────────────────────── Circulation and $ 823 $ 782 subscription Advertising 323 317 Consumer 556 510 Real estate 418 370 Other 161 165 Total Revenues 2,281 2,144 Operating expenses -988 -941 Selling, general and -890 -863 administrative Depreciation and -126 -117 amortization Impairment and -20 -19 restructuring charges Equity losses of -3 -2 affiliates Interest income, net 4 6 Other, net 38 4 Income before income 296 212 tax expense Income tax expense -81 -62 Net income 215 150 Net income attributable to -56 -38 noncontrolling interests Net income attributable to News $ 159 $ 112 Corporation stockholders Weighted-average shares outstanding: Basic 541.0 564.9 Diluted 542.7 566.9 Net income attributable to News Corporation $ 0.29 $ 0.20 stockholders per share, basic and diluted
As of September 30, 2026 As of June 30, 2026 ────────────────────────────────────────────────────────────────────────────── Assets: Current assets: Cash and cash equivalents $ 1,777 $ 2,095 Receivables, net 1,863 1,757 Inventory, net 332 302 Other current assets 321 328 Total current assets 4,293 4,482 Non-current assets: Investments 1,048 1,002 Property, plant and 1,411 1,398 equipment, net Operating lease right-of-use 755 754 assets Intangible assets, net 1,815 1,837 Goodwill 4,558 4,542 Deferred income tax assets, 251 251 net Other non-current assets 1,305 1,278 Total assets $ 15,436 $ 15,544 Liabilities and Equity: Current liabilities: Accounts payable $ 434 $ 412 Accrued expenses 941 1,080 Deferred revenue 546 543 Current borrowings 3 — Other current liabilities 722 726 Total current liabilities 2,646 2,761 Non-current liabilities: Borrowings 2,009 1,989 Retirement benefit 100 97 obligations Deferred income tax 109 108 liabilities, net Operating lease liabilities 836 840 Other non-current 519 513 liabilities Commitments and contingencies Equity: Class A common stock 4 4 Class B common stock 2 2 Additional paid-in capital 10,194 10,380 Accumulated deficit -199 -312 Accumulated other -1,512 -1,548 comprehensive loss Total News Corporation stockholders' 8,489 8,526 equity Noncontrolling interests 728 710 Total equity 9,217 9,236 Total liabilities and equity $ 15,436 $ 15,544
For the three months ended September 30, Operating activities: 2026 2025 ────────────────────────────────────────────────────────────────────────────── Net income $ 215 $ 150 Adjustments to reconcile net income to net cash provided by operating activities from continuing operations: Depreciation and 126 117 amortization Operating lease expense 17 17 Equity losses of 3 2 affiliates Impairment charges — 5 Deferred income taxes 3 18 Other, net -38 -3 Change in operating assets and liabilities, net of acquisitions:
Receivables and other -143 -77 assets Inventories, net -31 -3 Accounts payable and -139 -141 other liabilities Net cash provided by operating 13 85 activities from continuing operations Investing activities: Capital expenditures -102 -81 Proceeds from sales of property, plant — 1 and equipment Acquisitions, net of cash — -41 acquired Proceeds from business 10 — dispositions Purchases of investments in equity -14 -17 affiliates and other Proceeds from sales of investments in 31 38 equity affiliates and other Other, net -4 -1 Net cash used in investing activities -79 -101 from continuing operations Financing activities: Repayment of borrowings — -6 Repurchase of News Corp -166 -92 shares Dividends paid -61 -47 Other, net -34 -34 Net cash used in financing activities -261 -179 from continuing operations Cash flows from discontinued operations: Net cash used in operating activities — -5 from discontinued operations Net cash used in investing activities — — from discontinued operations Net cash used in financing activities — — from discontinued operations Net cash used in — -5 discontinued operations Net change in cash and cash equivalents, -327 -200 including discontinued operations Effect of exchange rate changes on cash and cash equivalents, 9 -5 including discontinued operations Cash and cash equivalents, beginning of 2,095 2,403 year Cash and cash equivalents, end of $ 1,777 $ 2,198 period
Segment EBITDA is defined as revenues less operating expenses and selling, general and administrative expenses. Segment EBITDA does not include: depreciation and amortization, impairment and restructuring charges, equity losses of affiliates, interest (expense) income, net, other, net and income tax (expense) benefit. Management believes that Segment EBITDA is an appropriate measure for evaluating the operating performance of the Company’s business segments because it is the primary measure used by the Company’s chief operating decision maker to evaluate the performance of and allocate resources within the Company’s businesses. Segment EBITDA provides management, investors and equity analysts with a measure to analyze the operating performance of each of the Company’s business segments and its enterprise value against historical data and competitors’ data, although historical results may not be indicative of future results (as operating performance is highly contingent on many factors, including customer tastes and preferences).
Total Segment EBITDA is a non-GAAP measure and should be considered in addition to, not as a substitute for, net income (loss), cash flow from continuing operations and other measures of financial performance reported in accordance with GAAP. In addition, this measure does not reflect cash available to fund requirements and excludes items, such as depreciation and amortization and impairment and restructuring charges, which are significant components in assessing the Company’s financial performance. The Company believes that the presentation of Total Segment EBITDA provides useful information regarding the Company’s operations and other factors that affect the Company’s reported results. Specifically, the Company believes that by excluding certain one-time or non-cash items such as impairment and restructuring charges and depreciation and amortization, as well as potential distortions between periods caused by factors such as financing and capital structures and changes in tax positions or regimes, the Company provides users of its consolidated financial statements with insight into both its core operations as well as the factors that affect reported results between periods but which the Company believes are not representative of its core business. As a result, users of the Company’s consolidated financial statements are better able to evaluate changes in the core operating results of the Company across different periods. The following table reconciles Net income to Total Segment EBITDA for the three months ended September 30, 2026 and 2025:
10 NOTE 2 – ADJUSTED REVENUES, ADJUSTED TOTAL SEGMENT EBITDA AND ADJUSTED SEGMENT EBITDA
The Company uses revenues, Total Segment EBITDA and Segment EBITDA excluding the impact of acquisitions, divestitures, fees and costs, net of indemnification, related to the claims and investigations arising out of certain conduct at The News of the World (the “U.K. Newspaper Matters”), charges for other significant, non-ordinary course legal or regulatory matters (“litigation charges”) and foreign currency fluctuations (“Adjusted Revenues,” “Adjusted Total Segment EBITDA” and “Adjusted Segment EBITDA,” respectively) to evaluate the performance of the Company’s core business operations exclusive of certain items that impact the comparability of results from period to period such as the unpredictability and volatility of currency fluctuations. The Company calculates the impact of foreign currency fluctuations for businesses reporting in currencies other than the U.S. dollar by multiplying the results for each quarter in the current period by the difference between the average exchange rate for that quarter and the average exchange rate in effect during the corresponding quarter of the prior year and totaling the impact for all quarters in the current period.
The calculation of Adjusted Revenues, Adjusted Total Segment EBITDA and Adjusted Segment EBITDA may not be comparable to similarly titled measures reported by other companies, since companies and investors may differ as to what type of events warrant adjustment. Adjusted Revenues, Adjusted Total Segment EBITDA and Adjusted Segment EBITDA are not measures of performance under generally accepted accounting principles and should not be construed as substitutes for amounts determined under GAAP as measures of performance. However, management uses these measures in comparing the Company’s historical performance and believes that they provide meaningful and comparable information to investors to assist in their analysis of our performance relative to prior periods and our competitors.
The following table reconciles reported revenues and reported Total Segment EBITDA to Adjusted Revenues and Adjusted Total Segment EBITDA for the three months ended September 30, 2026 and 2025:
Average foreign exchange rates used in the calculation of the impact of foreign currency fluctuations for the three months ended September 30, 2026 and 2025 are as follows:
Fiscal Year 2027 Q1 U.S. Dollar per Australian Dollar $0.71 U.S. Dollar per British Pound Sterling $1.34 Fiscal Year 2026 Q1 U.S. Dollar per Australian Dollar $0.65 U.S. Dollar per British Pound Sterling $1.35
Adjusted Revenues and Adjusted Segment EBITDA by segment for the three months ended September 30, 2026 and 2025 are as follows:
12 The following tables reconcile reported revenues and Segment EBITDA by segment to Adjusted Revenues and Adjusted Segment EBITDA by segment for the three months ended September 30, 2026 and 2025:
13 NOTE 3 – ADJUSTED NET INCOME (LOSS) ATTRIBUTABLE TO NEWS CORPORATION STOCKHOLDERS AND ADJUSTED EPS
The Company uses net income (loss) attributable to News Corporation stockholders and diluted earnings per share (“EPS”) excluding expenses related to U.K. Newspaper Matters, litigation charges, impairment and restructuring charges and “Other, net”, net of tax, recognized by the Company or its equity method investees, as well as the settlement of certain pre-Separation tax matters (“adjusted net income (loss) attributable to News Corporation stockholders” and “adjusted EPS,” respectively), to evaluate the performance of the Company’s operations exclusive of certain items that impact the comparability of results from period to period, as well as certain non-operational items. The calculation of adjusted net income (loss) attributable to News Corporation stockholders and adjusted EPS may not be comparable to similarly titled measures reported by other companies, since companies and investors may differ as to what type of events warrant adjustment. Adjusted net income (loss) attributable to News Corporation stockholders and adjusted EPS are not measures of performance under generally accepted accounting principles and should not be construed as substitutes for consolidated net income (loss) attributable to News Corporation stockholders and net income (loss) per share as determined under GAAP as a measure of performance. However, management uses these measures in comparing the Company’s historical performance and believes that they provide meaningful and comparable information to investors to assist in their analysis of our performance relative to prior periods and our competitors.
The following table reconciles reported net income attributable to News Corporation stockholders and reported diluted EPS to adjusted net income attributable to News Corporation stockholders and adjusted EPS for the three months ended September 30, 2026 and 2025:
The Company believes that the presentation of revenues excluding the impact of foreign currency fluctuations (“constant currency revenues”) provides useful information regarding the performance of the Company’s core business operations exclusive of distortions between periods caused by the unpredictability and volatility of currency fluctuations. The Company calculates the impact of foreign currency fluctuations for businesses reporting in currencies other than the U.S. dollar as described in Note 2.
Constant currency revenues are not measures of performance under generally accepted accounting principles and should not be construed as substitutes for revenues as determined under GAAP as measures of performance. However, management uses these measures in comparing the Company’s historical performance and believes that they provide meaningful and comparable information to investors to assist in their analysis of our performance relative to prior periods and our competitors.
The following table reconciles reported revenues to constant currency revenues for the three months ended September 30, 2026:
Full text with the tables
Exhibit 99.1
NEWS CORPORATION REPORTS FIRST QUARTER RESULTS FOR FISCAL 2027
FISCAL 2027 FIRST QUARTER KEY FINANCIAL HIGHLIGHTS
•
First quarter revenues were $2.28 billion, a 6% increase compared to $2.14
billion in the prior year, driven by growth at the Digital Real Estate Services,
Book Publishing and Dow Jones segments, while net income in the quarter was $215
million, a 43% increase compared to $150 million in the prior year.
•
First quarter Total Segment EBITDA was $403 million, a 19% increase compared to
$340 million in the prior year.
•
First quarter reported EPS were $0.29 as compared to $0.20 in the prior year -
Adjusted EPS were $0.28 as compared to $0.22 in the prior year.
•
Dow Jones revenues for the first quarter rose a robust 8% compared to the prior
year, driven by higher circulation and licensing revenues, 11% growth at Dow
Jones Risk & Compliance and 8% growth at Dow Jones Energy.
•
REA Group revenues for the first quarter rose 13%, driven by positive foreign
exchange impacts and double-digit growth in controllable buy yield.
•
Move, operator of Realtor.com
®
, continued to scale profitability for the first quarter with 5% growth in
revenues and improved operational efficiencies.
•
Book Publishing delivered 9% revenue growth for the quarter, supported by strong
sales and continued growth in digital revenues.
NEW YORK, NY – November 4, 2026 –
News C orporation (“News Corp” or the “Company”) (Nasdaq: NWS, NWSA; ASX: NWS,
NWSLV) today reported financial results for the three months ended September 30,
2026 .
Commenting on the results, Chief Executive Robert Thomson said:
“We began Fiscal 2027 with a record first quarter performance, as revenues
increased 6 percent to $2.3 billion, net income expanded 43 percent to $215
million and Total Segment EBITDA surged 19 percent to $403 million, while our
margins expanded meaningfully and earnings per share were 29 cents compared to
20 cents in the prior year. These results herald our fourteenth consecutive
quarter of year-over-year profitability growth. Our three engines of growth -
Digital Real Estate Services, Dow Jones and Book Publishing - collectively
delivered robust results despite volatile economic conditions.
Our performance reflects the transformation of News Corp into a thriving,
higher-margin business, digitally driven with peerless, profitable content. We
believe we are primed for further growth in the AI age, as data centers, chips
and water may be necessary components, but high quality content is the very
essence of AI.
We remain vigilant in protecting that priceless intellectual property. We are
pleased to have partners in OpenAI and Meta that recognize the importance of our
content, and remain optimistic that other platforms will choose compensation
over confiscation, principle over plunder. To that end, we will woo and we will
sue.
We will continue to pursue growth and increased profitability with diligent cost
discipline and prudent capital stewardship with the clear aim of creating value
for all News Corp shareholders.”
FIRST QUARTER RESULTS
The Company reported fiscal 2027 first quarter total revenues of $2.28 billion,
a 6% increase compared to $2.14 billion in the prior year, primarily driven by
higher revenues at Digital Real Estate Services, Book Publishing and Dow Jones.
Results included a $43 million, or 2%, positive impact from foreign currency
fluctuations. Adjusted
1
Revenues (which excludes the foreign currency impact, acquisitions and
divestitures as defined in Note 2) increased 4% compared to the prior year.
Net income for the quarter was $215 million, a 43% increase compared to $150
million in the prior year, primarily driven by higher Total Segment EBITDA, as
discussed below, and higher Other, net, primarily due to a gain related to the
divestiture of REA India’s remaining business, partially offset by higher income
tax expense.
The Company reported first quarter Total Segment EBITDA of $403 million, a 19%
increase compared to $340 million in the prior year, primarily driven by the
strong revenue growth discussed above. Adjusted Total Segment EBITDA (as defined
in Note 2) increased 13%.
Net income per share attributable to News Corporation stockholders was $0.29 as
compared to $0.20 in the prior year. Adjusted EPS (as defined in Note 3) were
$0.28 compared to $0.22 in the prior year.
SEGMENT REVIEW
For the three
months ended
September 30,
2026 % Change
Revenues: (in millions) 2025 Better/(Wors…
──────────────────────────────────────────────────────────────────────────────
Dow Jones $ 630 $ 586 8 %
Digital Real
Estate 529 479 10 %
Services
Book 582 534 9 %
Publishing
News Media 540 545 -1 %
Other — — — %
Total $ 2,281 $ 2,144 6 %
Revenues
Segment
EBITDA:
Dow Jones $ 160 $ 144 11 %
Digital Real
Estate 212 158 34 %
Services
Book 75 58 29 %
Publishing
News Media 18 30 -40 %
Other -62 -50 -24 %
Total
Segment $ 403 $ 340 19 %
EBITDA
Dow Jones
Revenues in the quarter increased $44 million, or 8%, compared to the prior
year, driven by higher circulation and subscription revenues and higher digital
advertising revenues. Digital revenues at Dow Jones in the quarter represented
85% of total revenues compared to 84% in the prior year. Adjusted Revenues
increased 8%.
Circulation and subscription revenues increased $33 million, or 7%, reflecting
higher circulation and licensing revenues and a 5% increase in professional
information business revenues, led by 11% growth in Dow Jones Risk & Compliance
revenues to $104 million and 8% growth in Dow Jones Energy revenues to $79
million. Circulation revenues increased 4% compared to the prior year driven by
higher digital direct subscription ARPU and continued growth in digital-only
subscriptions. Digital circulation revenues accounted for 76% of circulation
revenues for the quarter, compared to 75% in the prior year.
2
During the first quarter, total average subscriptions to Dow Jones’ news
products were over 6.9 million, an 8% increase compared to the prior year.
Digital-only subscriptions to Dow Jones’ news products grew 10% to nearly 6.5
million. Total subscriptions to The Wall Street Journal grew 9% compared to the
prior year, to 5.0 million average subscriptions in the quarter. Digital-only
subscriptions to The Wall Street Journal grew 11% to nearly 4.7 million average
subscriptions in the quarter, driven by growth in enterprise news subscriptions,
and represented 93% of total Wall Street Journal subscriptions.
For the three
months ended
September 30,
2026 2025 % Change
(in
thousands, Better/(Wors…
except %)
The Wall
Street
Journal
Digital-only 4,663 4,217 11 %
subscriptio…
Total 5,008 4,610 9 %
subscriptio…
Barron’s
Group
Digital-only 1,536 1,366 12 %
subscriptio…
Total 1,622 1,471 10 %
subscriptio…
Total News
Products
Digital-only 6,477 5,878 10 %
subscriptio…
Total 6,922 6,392 8 %
subscriptio…
Advertising revenues for the quarter increased $8 million, or 9%, driven by a
12% increase in digital advertising revenues. Digital advertising accounted for
70% of total advertising revenues for the quarter, compared to 68% in the prior
year.
Segment EBITDA for the quarter increased $16 million, or 11%, reflecting the
higher revenues discussed above, partially offset by an increase in employee
costs and the timing of marketing spend. Adjusted Segment EBITDA increased 11%.
Digital Real Estate Services
Revenues in the quarter increased $50 million, or 10%, compared to the prior
year, driven by higher revenues at both REA Group and Move. Segment EBITDA in
the quarter increased $54 million, or 34%, compared to the prior year, due to
higher contributions from both REA Group and Move. Adjusted Revenues and
Adjusted Segment EBITDA increased 4% and 23%, respe ctively.
In the quarter, revenues at REA Group increased $42 million, or 13%, to $369
million, including a $27 million, or 8%, positive impact from foreign currency
fluctuations, driven by higher Australian residential revenues primarily due to
price increases, growth in add-on products and increased depth penetration,
partially offset by unfavorable geographical mix. Australian national
residential buy listing volumes in the quarter declined 2% compared to the prior
year, with Sydney and Melbourne down 16%.
On October 23, 2026, REA Group hosted an investor briefing in Sydney. Materials,
including a webcast, can be found on the REA Group Investor Relations website.
Move’s revenues in the quarter increased $8 million, or 5%, to $160 million,
primarily as a result of higher sales of RealPRO Select SM , which drove both
higher revenues per lead and annual contract value, and continued revenue growth
in seller, new homes and rentals. Based on Move’s internal data, average monthly
unique users of Realtor.com ® ’s web and mobile sites for the fiscal first
quarter were 66 million, an 8% decrease compared to the prior year driven
primarily by broader macroeconomic trends and a focus on higher quality leads,
with lead volumes decreasing 11% compared to the prior year period. According to
Comscore, monthly average visits for
3
the first quarter for Realtor.com ® were 263 million, and Realtor.com ®
continues to lead the industry in engagement as measured by visits per unique
user.
Book Publishing
Revenues in the quarter increased $48 million, or 9%, compared to the prior
year, driven by higher physical and digital book sales, reflecting strength in
General Books and Children’s Publishing. Adjusted Revenues increased 8%.
Digital sales increased 6% compared to the prior year driven by an increase in
audiobook sales. Digital sales represented 23% of consumer revenues for the
first quarters of both fiscal 2027 and 2026. Backlist sales represented
approximately 66% of consumer revenues in the quarter compared to 65% in the
prior year.
Segment EBITDA for the quarter increased $17 million, or 29%, compared to the
prior year, due to the higher revenues discussed above and the absence of a $13
million write-off of a customer receivable in the prior year, partially offset
by higher costs due to higher sales volume and mix of titles. Adjusted Segment
EBITDA increased 29%.
News Media
Revenues in the quarter decreased $5 million, or 1%, compared to the prior year,
primarily due to lower other revenues and lower print advertising revenues,
partially offset by a $17 million, or 3%, positive impact from foreign currency
fluctuations. Adjusted Revenues for the segment decreased 4%.
Circulation and subscription revenues increased $8 million, or 3%, compared to
the prior year, due to a $9 million, or 3%, positive impact from foreign
currency fluctuations , increased cover and subscription pricing and higher
content licensing revenues, partially offset by print volume declines.
Advertising revenues decreased $4 million, or 2%, compared to the prior year,
primarily due to lower print advertising revenues, partially offset by a $5
million, or 3%, positive impact from foreign currency fluctuations.
In the quarter, Segment EBITDA decreased $12 million, or 40%, compared to the
prior year, driven by the lower revenues discussed above. Adjusted Segment
EBITDA decreased 40%.
Digital revenues represented 41% of News Media segment revenues in the quarter,
compared to 38% in the prior year, and represented 40% of the combined revenues
of the newspaper mastheads. Digital subscribers and users across key properties
within the News Media segment are summarized below:
• Closing digital subscribers at News Corp Australia as of September 30, 2026
were 1,163,000 (1,006,000 for news mastheads), compared to 1,162,000 (993,000
for news mastheads) in the prior year (Source: Internal data).
• The Times and Sunday Times closing digital subscribers, including the Times
Literary Supplement , as of September 30, 2026 were 686,000, compared to 640,000
in the prior year (Source: Internal data).
• The Sun ’s digital offering reached 57 million global monthly unique users in
September 2026, compared to 77 million in the prior year (Source: Meta Pixel).
• New York Post ’s digital network reached 84 million monthly unique users in
September 2026, compared to 94 million in the prior year (Source: Google
Analytics).
4
CASH FLOW
The following table presents a reconciliation of net cash provided by operating
activities from continuing operations to free cash flow:
For the three months ended
September 30,
2026
(in millions) 2025
──────────────────────────────────────────────────────────────────────────────
Net cash provided by
operating $ 13 $ 85
activities from continuing
operations
Less: Capital expenditures -102 -81
Free cash flow $ -89 $ 4
Net cash provided by operating activities from continuing operations of $13
million for the three months ended September 30, 2026 was $72 million lower than
net cash provided by operating activities from continuing operations of $85
million in the prior year, primarily due to the timing of working capital
movements and higher tax payments, partially offset by higher Total Segment
EBITDA, as discussed above.
Free cash flow in the three months ended September 30, 2026 was $(89) million
compared to $4 million in the prior year. The decrease in free cash flow was
primarily driven by lower cash provided by operating activities from continuing
operations, as discussed above, and a $21 million increase in capital
expenditures.
Free cash flow is a non-GAAP financial measure. Free cash flow is defined as net
cash provided by (used in) operating activities from continuing operations, less
capital expenditures. Free cash flow excludes cash flows from discontinued
operations. Free cash flow may not be comparable to similarly titled measures
reported by other companies, since companies and investors may differ as to what
items should be included in the calculation of free cash flow.
Free cash flow does not represent the total increase or decrease in the cash
balance for the period and should be considered in addition to, not as a
substitute for, the net change in cash and cash equivalents as presented in the
Company’s consolidated statements of cash flows prepared in accordance with
GAAP, which incorporates all cash movements during the period.
The Company believes free cash flow provides useful information to management
and investors about the Company’s liquidity and cash flow trends.
COMPARISON OF NON-GAAP TO U.S. GAAP INFORMATION
Adjusted Revenues, Total Segment EBITDA, Adjusted Total Segment EBITDA, Adjusted
Segment EBITDA, adjusted net income attributable to News Corporation
stockholders, adjusted EPS, constant currency revenues and free cash flow are
non-GAAP financial measures contained in this earnings release. The Company
believes these measures are important tools for investors and analysts to use in
assessing the Company’s underlying business performance and to provide for more
meaningful comparisons of the Company’s operating performance between periods.
These measures also allow investors and analysts to view the Company’s business
from the same perspective as Company management. These non-GAAP measures may be
different than similar measures used by other companies and should be considered
in addition to, not as a substitute for, measures of financial performance
calculated in accordance with GAAP. Reconciliations for the differences between
non-GAAP measures used in this earnings release and comparable financial
measures calculated in accordance with U.S. GAAP are included in Notes 1, 2, 3
and 4 and the reconciliation of net cash provided by operating activities from
continuing operations to free cash flow is included above.
Conference call
5
News Corporation’s earnings conference call can be heard live at 5:00 p.m. EST
on November 4, 2026. To listen to the call, please visit
http://investors.newscorp.com.
Cautionary Statement Concerning Forward-Looking Statements
This document contains certain “forward-looking statements” within the meaning
of the Private Securities Litigation Reform Act of 1995. These forward-looking
statements include, but are not limited to, statements regarding trends and
uncertainties affecting the Company’s business, results of operations and
financial condition, the Company’s strategy and strategic initiatives, including
potential acquisitions, investments and dispositions, the Company’s cost savings
initiatives and the outcome of contingencies such as litigation and
investigations. These statements are based on management’s views and assumptions
regarding future events and business performance as of the time the statements
are made. Actual results may differ materially from these expectations due to
the risks, uncertainties and other factors described in the Company’s filings
with the Securities and Exchange Commission. More detailed information about
factors that could affect future results is contained in our filings with the
Securities and Exchange Commission. The “forward-looking statements” included in
this document are made only as of the date of this document and we do not have
and do not undertake any obligation to publicly update any “forward-looking
statements” to reflect subsequent events or circumstances, and we expressly
disclaim any such obligation, except as required by law or regulation.
About News Corporation
News Corp (Nasdaq: NWS, NWSA; ASX: NWS, NWSLV) is a global, diversified media
and information services company focused on creating and distributing
authoritative and engaging content and other products and services. The company
comprises businesses across a range of media, including: information services
and news, digital real estate services and book publishing. Headquartered in New
York, News Corp operates primarily in the United States, Australia, and the
United Kingdom, and its content and other products and services are distributed
and consumed worldwide. More information is available at: www.newscorp.com.
Contacts:
Investor Relations Corporate Communications
Michael Florin Arthur Bochner
212-416-3363 646-422-9671
mflorin@newscorp.com abochner@newscorp.com
6
NEWS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited; in millions, except per share amounts)
For the three months
ended
Revenues: September 30, 2026 2025
──────────────────────────────────────────────────────────────────────────────
Circulation and $ 823 $ 782
subscription
Advertising 323 317
Consumer 556 510
Real estate 418 370
Other 161 165
Total Revenues 2,281 2,144
Operating expenses -988 -941
Selling, general and -890 -863
administrative
Depreciation and -126 -117
amortization
Impairment and -20 -19
restructuring charges
Equity losses of -3 -2
affiliates
Interest income, net 4 6
Other, net 38 4
Income before income 296 212
tax expense
Income tax expense -81 -62
Net income 215 150
Net income
attributable to -56 -38
noncontrolling
interests
Net income
attributable to News $ 159 $ 112
Corporation
stockholders
Weighted-average
shares outstanding:
Basic 541.0 564.9
Diluted 542.7 566.9
Net income
attributable to News
Corporation $ 0.29 $ 0.20
stockholders per
share,
basic and diluted
7
NEWS CORPORATION
CONSOLIDATED BALANCE SHEETS
(Unaudited; in millions)
As of September
30, 2026 As of June 30, 2026
──────────────────────────────────────────────────────────────────────────────
Assets:
Current assets:
Cash and cash equivalents $ 1,777 $ 2,095
Receivables, net 1,863 1,757
Inventory, net 332 302
Other current assets 321 328
Total current assets 4,293 4,482
Non-current assets:
Investments 1,048 1,002
Property, plant and 1,411 1,398
equipment, net
Operating lease right-of-use 755 754
assets
Intangible assets, net 1,815 1,837
Goodwill 4,558 4,542
Deferred income tax assets, 251 251
net
Other non-current assets 1,305 1,278
Total assets $ 15,436 $ 15,544
Liabilities and Equity:
Current liabilities:
Accounts payable $ 434 $ 412
Accrued expenses 941 1,080
Deferred revenue 546 543
Current borrowings 3 —
Other current liabilities 722 726
Total current liabilities 2,646 2,761
Non-current liabilities:
Borrowings 2,009 1,989
Retirement benefit 100 97
obligations
Deferred income tax 109 108
liabilities, net
Operating lease liabilities 836 840
Other non-current 519 513
liabilities
Commitments and
contingencies
Equity:
Class A common stock 4 4
Class B common stock 2 2
Additional paid-in capital 10,194 10,380
Accumulated deficit -199 -312
Accumulated other -1,512 -1,548
comprehensive loss
Total News Corporation
stockholders' 8,489 8,526
equity
Noncontrolling interests 728 710
Total equity 9,217 9,236
Total liabilities and equity $ 15,436 $ 15,544
8
NEWS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited; in millions)
For the three months
ended
September 30,
Operating activities: 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net income $ 215 $ 150
Adjustments to reconcile
net income to
net cash provided by
operating
activities from
continuing operations:
Depreciation and 126 117
amortization
Operating lease expense 17 17
Equity losses of 3 2
affiliates
Impairment charges — 5
Deferred income taxes 3 18
Other, net -38 -3
Change in operating
assets and
liabilities, net of
acquisitions:
Receivables and other -143 -77
assets
Inventories, net -31 -3
Accounts payable and -139 -141
other liabilities
Net cash provided by
operating 13 85
activities from
continuing operations
Investing activities:
Capital expenditures -102 -81
Proceeds from sales of
property, plant — 1
and equipment
Acquisitions, net of cash — -41
acquired
Proceeds from business 10 —
dispositions
Purchases of investments
in equity -14 -17
affiliates and other
Proceeds from sales of
investments in 31 38
equity affiliates and
other
Other, net -4 -1
Net cash used in
investing activities -79 -101
from continuing
operations
Financing activities:
Repayment of borrowings — -6
Repurchase of News Corp -166 -92
shares
Dividends paid -61 -47
Other, net -34 -34
Net cash used in
financing activities -261 -179
from continuing
operations
Cash flows from
discontinued operations:
Net cash used in
operating activities — -5
from discontinued
operations
Net cash used in
investing activities — —
from discontinued
operations
Net cash used in
financing activities — —
from discontinued
operations
Net cash used in — -5
discontinued operations
Net change in cash and
cash equivalents, -327 -200
including discontinued
operations
Effect of exchange rate
changes on cash
and cash equivalents, 9 -5
including
discontinued operations
Cash and cash
equivalents, beginning of 2,095 2,403
year
Cash and cash
equivalents, end of $ 1,777 $ 2,198
period
9
NOTE 1 – TOTAL SEGMENT EBITDA
Segment EBITDA is defined as revenues less operating expenses and selling,
general and administrative expenses. Segment EBITDA does not include:
depreciation and amortization, impairment and restructuring charges, equity
losses of affiliates, interest (expense) income, net, other, net and income tax
(expense) benefit. Management believes that Segment EBITDA is an appropriate
measure for evaluating the operating performance of the Company’s business
segments because it is the primary measure used by the Company’s chief operating
decision maker to evaluate the performance of and allocate resources within the
Company’s businesses. Segment EBITDA provides management, investors and equity
analysts with a measure to analyze the operating performance of each of the
Company’s business segments and its enterprise value against historical data and
competitors’ data, although historical results may not be indicative of future
results (as operating performance is highly contingent on many factors,
including customer tastes and preferences).
Total Segment EBITDA is a non-GAAP measure and should be considered in addition
to, not as a substitute for, net income (loss), cash flow from continuing
operations and other measures of financial performance reported in accordance
with GAAP. In addition, this measure does not reflect cash available to fund
requirements and excludes items, such as depreciation and amortization and
impairment and restructuring charges, which are significant components in
assessing the Company’s financial performance. The Company believes that the
presentation of Total Segment EBITDA provides useful information regarding the
Company’s operations and other factors that affect the Company’s reported
results. Specifically, the Company believes that by excluding certain one-time
or non-cash items such as impairment and restructuring charges and depreciation
and amortization, as well as potential distortions between periods caused by
factors such as financing and capital structures and changes in tax positions or
regimes, the Company provides users of its consolidated financial statements
with insight into both its core operations as well as the factors that affect
reported results between periods but which the Company believes are not
representative of its core business. As a result, users of the Company’s
consolidated financial statements are better able to evaluate changes in the
core operating results of the Company across different periods. The following
table reconciles Net income to Total Segment EBITDA for the three months ended
September 30, 2026 and 2025:
For the
three
months
ended
September
30,
2026
(in
millions) 2025 Change % Change
──────────────────────────────────────────────────────────────────────────────
Net $ 215 $ 150 $ 65 43 %
income
Reconci…
items:
Income
tax 81 62 19 31 %
expense
Other, -38 -4 -34 -850 %
net
Interest
income, -4 -6 2 33 %
net
Equity
losses 3 2 1 50 %
of
affilia…
Impairm…
and 20 19 1 5 %
restruc…
charges
Depreci…
and 126 117 9 8 %
amortiz…
Total
Segment $ 403 $ 340 $ 63 19 %
EBITDA
10
NOTE 2 – ADJUSTED REVENUES, ADJUSTED TOTAL SEGMENT EBITDA AND ADJUSTED SEGMENT
EBITDA
The Company uses revenues, Total Segment EBITDA and Segment EBITDA excluding the
impact of acquisitions, divestitures, fees and costs, net of indemnification,
related to the claims and investigations arising out of certain conduct at The
News of the World (the “U.K. Newspaper Matters”), charges for other significant,
non-ordinary course legal or regulatory matters (“litigation charges”) and
foreign currency fluctuations (“Adjusted Revenues,” “Adjusted Total Segment
EBITDA” and “Adjusted Segment EBITDA,” respectively) to evaluate the performance
of the Company’s core business operations exclusive of certain items that impact
the comparability of results from period to period such as the unpredictability
and volatility of currency fluctuations. The Company calculates the impact of
foreign currency fluctuations for businesses reporting in currencies other than
the U.S. dollar by multiplying the results for each quarter in the current
period by the difference between the average exchange rate for that quarter and
the average exchange rate in effect during the corresponding quarter of the
prior year and totaling the impact for all quarters in the current period.
The calculation of Adjusted Revenues, Adjusted Total Segment EBITDA and Adjusted
Segment EBITDA may not be comparable to similarly titled measures reported by
other companies, since companies and investors may differ as to what type of
events warrant adjustment. Adjusted Revenues, Adjusted Total Segment EBITDA and
Adjusted Segment EBITDA are not measures of performance under generally accepted
accounting principles and should not be construed as substitutes for amounts
determined under GAAP as measures of performance. However, management uses these
measures in comparing the Company’s historical performance and believes that
they provide meaningful and comparable information to investors to assist in
their analysis of our performance relative to prior periods and our competitors.
The following table reconciles reported revenues and reported Total Segment
EBITDA to Adjusted Revenues and Adjusted Total Segment EBITDA for the three
months ended September 30, 2026 and 2025:
To…
Se…
Re… EB…
For For
the the
th… th…
mo… mo…
en… en…
Se… Se…
30, 30,
20… 20…
(in (in
mi… 20… Dif… mi… 2025 Di…
──────────────────────────────────────────────────────────────────────────────
As $ 2,… $ 2,… $ 137 $ 403 $ 340 $ 63
r…
I…
of -14 — -14 -1 — -1
a…
I…
of -8 -14 6 5 6 -1
d…
I…
of
f… -43 — -43 -15 — -15
c…
f…
N…
i…
of — — — — 1 -1
U…
N…
M…
As $ 2,… $ 2,… $ 86 $ 392 $ 347 $ 45
a…
11
Foreign Exchange Rates
Average foreign exchange rates used in the calculation of the impact of foreign
currency fluctuations for the three months ended September 30, 2026 and 2025 are
as follows:
Fiscal Year 2027
Q1
U.S. Dollar per Australian Dollar $0.71
U.S. Dollar per British Pound Sterling $1.34
Fiscal Year 2026
Q1
U.S. Dollar per Australian Dollar $0.65
U.S. Dollar per British Pound Sterling $1.35
Adjusted Revenues and Adjusted Segment EBITDA by segment for the three months
ended September 30, 2026 and 2025 are as follows:
For the three
months ended
September 30,
Adjusted 2026 % Change
Revenues: (in millions) 2025 Better/(Wors…
──────────────────────────────────────────────────────────────────────────────
Dow Jones $ 630 $ 586 8 %
Digital Real
Estate 486 467 4 %
Services
Book 577 534 8 %
Publishing
News Media 523 543 -4 %
Other — — — %
Adjusted
Total $ 2,216 $ 2,130 4 %
Revenues
Adjusted
Segment
EBITDA:
Dow Jones $ 160 $ 144 11 %
Digital Real
Estate 201 164 23 %
Services
Book 75 58 29 %
Publishing
News Media 18 30 -40 %
Other -62 -49 -27 %
Adjusted
Total $ 392 $ 347 13 %
Segment
EBITDA
12
The following tables reconcile reported revenues and Segment EBITDA by segment
to Adjusted Revenues and Adjusted Segment EBITDA by segment for the three months
ended September 30, 2026 and 2025:
For
the
th…
mo…
en…
Se…
30,
20…
──────────────────────────────────────────────────────────────────────────────
Im… Net
Im… Imp… of Imp…
As of of Fo… of As
Re… Ac… Div… Cu… U.K. Ad…
Fl… New…
Mat…
-in
mi…
Re…
Dow $ 630 $ -1 $ — $ 1 $ — $ 630
Jo…
Di…
Re… 529 -8 -8 -27 — 486
Es…
Se…
Bo… 582 -5 — — — 577
Pu…
Ne… 540 — — -17 — 523
Me…
Ot… — — — — — —
To… $ 2,2… $ -14 $ -8 $ -43 $ — $ 2,2…
Re…
Se…
EB…
Dow $ 160 $ — $ — $ — $ — $ 160
Jo…
Di…
Re… 212 -1 5 -15 — 201
Es…
Se…
Bo… 75 — — — — 75
Pu…
Ne… 18 — — — — 18
Me…
Ot… -62 — — — — -62
To…
Se… $ 403 $ -1 $ 5 $ -15 $ — $ 392
EB…
For
the
thr…
mon…
end…
Sep…
30,
2025
──────────────────────────────────────────────────────────────────────────────
Imp… Net
Imp… Imp… of Imp…
As of of For… of As
Rep… Acq… Div… Cur… U.K. Ad…
Flu… New…
Mat…
-in
mil…
Re…
Dow $ 586 $ — $ — $ — $ — $ 586
Jo…
Di…
Re… 479 — -12 — — 467
Es…
Se…
Bo… 534 — — — — 534
Pu…
Ne… 545 — -2 — — 543
Me…
Ot… — — — — — —
To… $ 2,1… $ — $ -14 $ — $ — $ 2,1…
Re…
Se…
EB…
Dow $ 144 $ — $ — $ — $ — $ 144
Jo…
Di…
Re… 158 — 6 — — 164
Es…
Se…
Bo… 58 — — — — 58
Pu…
Ne… 30 — — — — 30
Me…
Ot… -50 — — — 1 -49
To…
Se… $ 340 $ — $ 6 $ — $ 1 $ 347
EB…
13
NOTE 3 – ADJUSTED NET INCOME (LOSS) ATTRIBUTABLE TO NEWS CORPORATION
STOCKHOLDERS AND ADJUSTED EPS
The Company uses net income (loss) attributable to News Corporation stockholders
and diluted earnings per share (“EPS”) excluding expenses related to U.K.
Newspaper Matters, litigation charges, impairment and restructuring charges and
“Other, net”, net of tax, recognized by the Company or its equity method
investees, as well as the settlement of certain pre-Separation tax matters
(“adjusted net income (loss) attributable to News Corporation stockholders” and
“adjusted EPS,” respectively), to evaluate the performance of the Company’s
operations exclusive of certain items that impact the comparability of results
from period to period, as well as certain non-operational items. The calculation
of adjusted net income (loss) attributable to News Corporation stockholders and
adjusted EPS may not be comparable to similarly titled measures reported by
other companies, since companies and investors may differ as to what type of
events warrant adjustment. Adjusted net income (loss) attributable to News
Corporation stockholders and adjusted EPS are not measures of performance under
generally accepted accounting principles and should not be construed as
substitutes for consolidated net income (loss) attributable to News Corporation
stockholders and net income (loss) per share as determined under GAAP as a
measure of performance. However, management uses these measures in comparing the
Company’s historical performance and believes that they provide meaningful and
comparable information to investors to assist in their analysis of our
performance relative to prior periods and our competitors.
The following table reconciles reported net income attributable to News
Corporation stockholders and reported diluted EPS to adjusted net income
attributable to News Corporation stockholders and adjusted EPS for the three
months ended September 30, 2026 and 2025:
For the For the
three three
months months
ended ended
Septem… Septem…
30, 30,
2026 2025
──────────────────────────────────────────────────────────────────────────────
(in Net Net
milli… income income
except attribu… EPS attribu… EPS
per to to
share stockho… stockho…
data)
Net $ 215 $ 150
income
Less:
Net
income
attri… -56 -38
to
nonco…
inter…
Net
income
attri…
to $ 159 $ 0.29 $ 112 $ 0.20
News
Corpo…
stock…
U.K.
Newsp… — — 1 —
Matte…
Impai…
and 20 0.04 19 0.03
restr…
charg…
Other, -38 -0.07 -4 —
net
Tax
impact
on -2 — -7 -0.01
items
above
Impact
of
nonco…
inter… 12 0.02 1 —
on
items
above
As $ 151 $ 0.28 $ 122 $ 0.22
adjus…
14
NOTE 4 – CONSTANT CURRENCY REVENUES
The Company believes that the presentation of revenues excluding the impact of
foreign currency fluctuations (“constant currency revenues”) provides useful
information regarding the performance of the Company’s core business operations
exclusive of distortions between periods caused by the unpredictability and
volatility of currency fluctuations. The Company calculates the impact of
foreign currency fluctuations for businesses reporting in currencies other than
the U.S. dollar as described in Note 2.
Constant currency revenues are not measures of performance under generally
accepted accounting principles and should not be construed as substitutes for
revenues as determined under GAAP as measures of performance. However,
management uses these measures in comparing the Company’s historical performance
and believes that they provide meaningful and comparable information to
investors to assist in their analysis of our performance relative to prior
periods and our competitors.
The following table reconciles reported revenues to constant currency revenues
for the three months ended September 30, 2026:
Q1
Fi… Q1 % %
20… Fi… Ch… C…
($ Q1 20… - -
C… in Fi… FX co… re… c…
r… mi… 20… im… cu… Be… c…
──────────────────────────────────────────────────────────────────────────────
C…
a… $ 782 $ 823 8 815 5 % 4 %
s…
A… 317 323 6 317 2 % — %
C… 510 556 — 556 9 % 9 %
R… 370 418 21 397 13 % 7 %
e…
O… 165 161 8 153 -2 % -7 %
T… $ 2,… $ 2,… $ 43 $ 2,… 6 % 4 %
r…
D…
J…
C…
a… $ 491 $ 524 $ -1 $ 525 7 % 7 %
s…
A… 85 93 — 93 9 % 9 %
O… 10 13 — 13 30 % 30 %
T…
D…
J… $ 586 $ 630 $ -1 $ 631 8 % 8 %
s…
r…
D…
R…
E…
S…
C…
a… $ 2 $ 2 $ — $ 2 — % — %
s…
A… 41 43 1 42 5 % 2 %
R… 370 418 21 397 13 % 7 %
e…
O… 66 66 5 61 — % -8 %
T…
D…
R…
E… $ 479 $ 529 $ 27 $ 502 10 % 5 %
S…
s…
r…
R…
G… $ 327 $ 369 $ 27 $ 342 13 % 5 %
r…
15
Q1
Fi… Q1 % %
20… Fi… Ch… Ch…
($ Q1 20… - -
B… in Fi… FX co… re… co…
P… mi… 20… im… cu… Be… cu…
──────────────────────────────────────────────────────────────────────────────
C… $ 510 $ 556 $ — $ 5… 9 % 9 %
O… 24 26 — 26 8 % 8 %
T…
B…
P… $ 534 $ 582 $ — $ 5… 9 % 9 %
s…
r…
N…
M…
C…
a… $ 289 $ 297 $ 9 $ 2… 3 % — %
s…
A… 191 187 5 1… -2 % -5 %
O… 65 56 3 53 -… % -… %
T…
N…
M… $ 545 $ 540 $ 17 $ 5… -1 % -4 %
s…
r…
16