NWS Q2 2026 Earnings Call Summary

News Corp Q2 2026 Earnings Call Summary

1. Key Financial Results and Metrics

Revenue: Increased by 6% to $2.4 billion.
Total Segment EBITDA: Rose 9% to $521 million, with a profitability margin improvement from 21.4% to 22.1%.
Net Income: Decreased 21% to $242 million, primarily due to the absence of an $87 million gain from the previous year.
Adjusted EPS: Increased to $0.40 from $0.33 in the prior quarter.
Share Buybacks: $172 million repurchased in Q2, significantly up from the previous year.

2. Strategic Updates and Business Highlights

Dow Jones: Achieved 8% revenue growth, with digital revenues accounting for 82% of total segment revenues. Professional Information Business revenues rose 12%, driven by new products and customer acquisition.
Digital Real Estate Services: Revenues grew 8%, with Realtor.com seeing a 10% increase, aided by premium products and lead volume growth.
Book Publishing: Revenues increased 6%, with notable sales in the faith segment and a recovery in general book sales.
News Media: Revenues were flat at $570 million, with digital subscriber growth in the U.K. and Australia offsetting weak print advertising trends.

3. Forward Guidance and Outlook

Positive Outlook: Management expressed optimism for continued growth in the second half of the fiscal year, particularly in Dow Jones and Digital Real Estate.
Investment in AI: The company is positioning itself to capitalize on AI opportunities, with expectations of revenue from AI partnerships.
CapEx: Expected to increase moderately, with a focus on operational efficiency and growth in core segments.

4. Bad News, Challenges, or Points of Concern

Net Income Decline: The significant drop in net income due to the lack of prior year gains raises concerns about underlying profitability.
News Media Segment: Flat revenues and a 5% decline in EBITDA highlight ongoing challenges in the print advertising market.
Competitive Pressures: Concerns regarding competition from Homes.com, although management remains confident in Realtor.com's growth trajectory.

5. Notable Q&A Insights

AI Impact: Management emphasized that AI's retrospective nature poses limited threats to News Corp, as they possess unique, proprietary content that AI companies require.
CapEx Allocation: There will be a modest reduction in Dow Jones CapEx, with overall strong free cash flow expected despite increased investments.
Pricing Strategy: Dow Jones is focusing on optimizing pricing strategies for digital subscriptions, with expectations for improved ARPU as promotional pricing rolls off.

Overall, News Corp reported solid growth in revenues and EBITDA, driven by its core segments, while navigating challenges in the News Media sector and adapting to the evolving landscape influenced by AI. The outlook remains positive, with strategic investments aimed at enhancing shareholder value.

NWS — News Corporation