News Corp Reports Strong Q3 Results with 9% Revenue Growth and Increased Profitability

summarizeSummary

News Corp announced strong third-quarter fiscal 2026 results, with significant revenue and profit growth driven by robust performance in its Digital Real Estate, Dow Jones, and Book Publishing segments, alongside a positive outlook and continued share repurchases.

check_boxKey Events

• Strong Q3 Financial Performance

  News Corp reported a 9% increase in revenues to $2.19 billion, a 13% rise in net income from continuing operations to $121 million, and an 18% surge in Total Segment EBITDA to $343 million for the third quarter of fiscal 2026. Adjusted EPS grew to $0.21 from $0.17 year-over-year.

• Key Segment Growth Drivers

  Growth was primarily fueled by Digital Real Estate Services (revenues up 17%), Dow Jones (revenues up 8% with 19% growth in Risk & Compliance), and Book Publishing (revenues up 8% led by strong sales).

• Positive Outlook and Share Buybacks

  CEO Robert Thomson expressed confidence in achieving another year of record profitability and confirmed the continuation of an accelerated share buyback program, indicating management's belief in the company's intrinsic value.

• Strategic AI Positioning

  The company highlighted its role as an 'AI inputs company,' referencing existing deals with Meta and OpenAI, and stated it is in discussions with other companies while actively pursuing firms illicitly scraping its content.

auto_awesomeAnalysis

News Corp delivered robust financial results for the third quarter of fiscal 2026, demonstrating accelerated growth across key metrics. Total revenues increased by 9% to $2.19 billion, net income from continuing operations rose 13% to $121 million, and Total Segment EBITDA grew 18% to $343 million. This marks a significant improvement compared to the previous quarter's performance, particularly in net income, which had previously declined. The CEO highlighted the company's trajectory towards another year of record profitability, continued execution of an accelerated share buyback program, and strategic positioning in the AI landscape through partnerships with Meta and OpenAI. Strong performance in Digital Real Estate Services, Dow Jones, and Book Publishing segments were key drivers of this growth, while News Media saw a decline in Adjusted Segment EBITDA.