News Corp Reports Mixed Q3 Results with Revenue Growth, Net Income Decline, and Active Capital Management
Summary
News Corp reported a 9% revenue increase and 18% Segment EBITDA growth in Q3 2026, but net income attributable to stockholders declined by 14%. The company completed a $1 billion share repurchase program and refinanced its credit facilities, enhancing liquidity and capital return.
Key Events
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Q3 Revenue and Segment EBITDA Growth
Total revenues increased by 9% to $2.185 billion for the three months ended March 31, 2026, compared to $2.009 billion in the prior year. Segment EBITDA grew by 18% to $343 million from $290 million in the same period.
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Net Income Attributable to Stockholders Declined
Net income attributable to News Corporation stockholders decreased by 14% to $89 million for the quarter, down from $103 million in the prior year.
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Significant Share Repurchases
The company completed its $1 billion 2021 Repurchase Program during the quarter and repurchased $193 million of its shares under existing programs. Approximately $851 million remains authorized under the 2025 Repurchase Program.
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Debt Refinancing Enhances Liquidity
News Corp entered into a new $1.5 billion Amended and Restated Credit Agreement on March 27, 2026, refinancing existing facilities, increasing its revolving credit facility to $1 billion, and extending maturities to March 2031.
Analysis
News Corp's Q3 2026 earnings report presents a mixed financial picture. While the company achieved a 9% increase in total revenues and an 18% rise in Segment EBITDA for the quarter, net income attributable to stockholders saw a 14% decline. This indicates strong operational performance in key segments like Digital Real Estate Services and Dow Jones, but challenges in profitability. The completion of the $1 billion 2021 share repurchase program and the ongoing $851 million remaining under the 2025 program highlight the company's commitment to returning capital to shareholders. Additionally, the refinancing of its credit facilities, extending maturity and increasing capacity, strengthens its liquidity position. Investors should monitor the company's ability to translate revenue and EBITDA growth into improved net income and the performance of its News Media segment.
At the time of this filing, NWSA was trading at $26.60 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $15.7B. The 52-week trading range was $22.20 to $31.61. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.