News Corp (NWS) Q1 Fiscal 2026 Earnings Call Summary

1Key Financial Results and Metrics

Revenue:: $2.14 billion, up 2% year-over-year.

Total Segment EBITDA:: $340 million, an increase of 5%.

Net Income from Continuing Operations:: $150 million, slightly up from $149 million in the prior year.

Adjusted EPS:: Increased from $0.20 to $0.22.

Cash Position:: Robust, with strong free cash flow expected for the fiscal year and an accelerated share buyback program.

2Strategic Updates and Business Highlights

Dow Jones:: Revenue rose 6% to $586 million, with digital revenues comprising 84% of total. Notable growth in Risk & Compliance (16%) and Energy (7%). Digital subscriptions for The Wall Street Journal increased by 11%.

Digital Real Estate Services:: Revenue increased 5% to $479 million, with realtor.com achieving a 9% revenue boost, marking the highest growth rate in nearly four years. Focus on premium offerings and higher yields is paying off.

Book Publishing:: Revenue declined by 2% to $534 million, impacted by a $13 million write-off related to a distributor closure. However, recent trends show improvement in orders and sales.

News Media:: Revenues rose 1% to $545 million, with a significant EBITDA increase of 67% due to cost efficiencies and strong advertising growth at the New York Post.

3Forward Guidance and Outlook

Dow Jones and Digital Real Estate:: Expected continued strong revenue growth, with Dow Jones anticipating slightly higher cost growth in Q2.

Book Publishing:: Optimistic about Q2 with improved market conditions and a stronger front list.

Overall:: Strong free cash flow anticipated, with ongoing investments in technology and supply chain logistics for HarperCollins. Continued share buybacks are planned.

4Bad News, Challenges, or Points of Concern

Book Publishing:: Experienced a weak quarter with a significant write-off and difficult prior year comparisons. The market remains sluggish, although recent trends are improving.

Digital Real Estate:: While there are signs of recovery, new buy listings in Australia are down, and the market is not fully normalized.

Advertising Trends:: Mixed results in News Media, with some challenges in print advertising despite strong digital performance.

5Notable Q&A Insights

Share Buyback Strategy:: Management is open to increasing the buyback rate, emphasizing a robust cash position and the stock's undervaluation.

Pricing Strategy for The Wall Street Journal:: Early stages of testing subscription price increases, with expectations of positive elasticity and planned product improvements.

Risk & Compliance Growth:: Driven by regulatory demands, indicating potential for sustained growth in this segment.

News Media Outlook:: Positive margin improvements and cost efficiencies noted, with expectations for continued growth driven by strong advertising at the New York Post. Overall, News Corp reported a solid start to fiscal 2026, with mixed results across segments but a strong focus on digital growth and shareholder value. Challenges remain, particularly in Book Publishing, but recent trends suggest potential recovery.