News Corp Reports Q2 Revenue Growth and Increased Share Repurchases Amidst Net Income Decline
NWSA is trading near its 52-week low of $23.38 (2.4% above the low) on elevated volume (2.2× avg).
Summary
News Corp's Q2 2026 10-Q details a 6% revenue increase and 9% Segment EBITDA growth, alongside a 10% decrease in net income attributable to stockholders, while significantly boosting share repurchases.
Key Events · Earnings and Guidance · NWSA
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Q2 Revenue Growth
Total revenues increased 6% to $2.36 billion for the three months ended December 31, 2025, compared to $2.24 billion in the prior-year period.
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Segment EBITDA Improvement
Total Segment EBITDA rose 9% to $521 million for the three months ended December 31, 2025, up from $478 million in the corresponding period of fiscal 2025.
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Net Income Decline
Net income attributable to News Corporation stockholders decreased 10% to $193 million for the quarter, down from $215 million in the prior year, primarily due to higher operating costs and the absence of a significant prior-year gain.
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Increased Share Repurchases
The company repurchased $172 million in shares during the quarter, a substantial increase from $40 million in the prior-year period, with approximately $1.044 billion remaining under the current authorization.
Analysis · NWSA · Manufacturing
This 10-Q provides a comprehensive financial update, building on the preliminary 8-K earnings release. While News Corp achieved solid operational growth with a 6% increase in Q2 revenues and a 9% rise in Segment EBITDA, the 10% decline in net income attributable to stockholders is a notable concern, primarily due to higher operating expenses and the absence of a significant prior-year gain. The substantial increase in share repurchases, totaling $172 million for the quarter and $266 million for the six-month period, signals strong management confidence and a commitment to returning capital to shareholders, especially with the stock trading near its 52-week low. Investors should closely monitor the company's ability to translate revenue growth into improved bottom-line profitability and the ongoing developments in its legal proceedings.
At the time of this filing, NWSA was trading at $23.95 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $14.2B. The 52-week trading range was $23.38 to $31.61. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.