NWS Q3 2026 Earnings Call Summary

News Corp Q3 2026 Earnings Call Summary

1. Key Financial Results and Metrics

Total Revenue: Increased 9% year-over-year to $2.2 billion.
Total Segment EBITDA: Rose 18% to $343 million, with margins expanding from 14.4% to 15.7%.
Net Income from Continuing Operations: Increased 13%.
Earnings Per Share (EPS): $0.16, up from $0.14; adjusted EPS was $0.21, up from $0.17.
Share Buybacks: $193 million repurchased in Q3, totaling $459 million for the fiscal year-to-date.

2. Strategic Updates and Business Highlights

Continued Profitability Growth: Marked the 12th consecutive quarter of profitability growth on a continuing operations basis.
Key Growth Segments:
- Dow Jones: Revenue grew 8% to $619 million; segment EBITDA increased 11% to $147 million.
- Digital Real Estate Services: Revenue increased 17% to $473 million; segment EBITDA surged 25% to $155 million.
- Book Publishing (HarperCollins): Revenue grew 8% to $555 million; EBITDA increased 14% to $73 million.
AI Partnerships: Continued collaboration with Meta and OpenAI, with expectations of significant revenue contributions from these partnerships.
Digital Transformation: Emphasized the shift towards a digital-first company with a strong recurring revenue base.

3. Forward Guidance and Outlook

Q4 Expectations: Anticipate strong results driven by core growth engines. Dow Jones is projected to maintain strong revenue performance, while Digital Real Estate Services is expected to benefit from improving housing market conditions.
Continued Investment: Plans to invest in new projects, including the California Post, while managing costs effectively.
Cash Flow: Strong free cash flow growth expected despite higher capital expenditures.

4. Bad News, Challenges, or Points of Concern

News Media Segment: Reported a decline in profits due to investment costs associated with the California Post and ongoing challenges in the U.K. and Australian markets.
Market Conditions: High interest rates and geopolitical uncertainties, particularly in the Middle East, pose risks to revenue stability.
Digital Advertising: While digital advertising grew, print revenue continues to decline, reflecting ongoing challenges in traditional media.

5. Notable Q&A Insights

Investment in Dow Jones Energy: Management is balancing investment in new energy benchmarks with expected returns, indicating a strategic focus on high-margin segments.
Realtor.com Growth: Despite high mortgage rates, Realtor.com has seen consecutive quarters of revenue growth, attributed to effective team strategies and a focus on premium listings.
AI Revenue Potential: While specific revenue figures from AI partnerships were not disclosed, management expressed confidence in significant future contributions from these collaborations.
Cost Management in News Media: Efforts to streamline operations and drive cost efficiencies were highlighted, particularly in the context of the California Post launch.

Overall, News Corp's Q3 2026 results reflect strong financial performance and strategic positioning, though challenges in the News Media segment and external market conditions warrant close monitoring.

NWS — News Corporation