News Corp (NWSA) Q1 2026 Earnings Call Summary

1Key Financial Results and Metrics

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

Total Segment EBITDA: $340 million, up 5%.

Net Income from Continuing Operations: $150 million, slightly up from $149 million last year.

Adjusted EPS: Increased from $0.20 to $0.22.

Margins: Improved to 15.9%, up 40 basis points from the prior year.

2Strategic Updates and Business Highlights

Dow Jones: Revenue rose 6% to $586 million; EBITDA increased 10% to $144 million. Digital revenues accounted for 84% of Dow Jones revenue. Strong growth in Risk & Compliance (up 16%).

Digital Real Estate Services: Revenue increased 5% to $479 million; EBITDA rose 13% to $158 million. Realtor.com saw a 9% revenue boost, marking the highest growth rate in nearly four years.

Book Publishing: Revenue declined 2% to $534 million, impacted by a $13 million write-off due to a distributor's closure. Recent trends show improvement in sales.

News Media: Revenue grew 1% to $545 million, with EBITDA soaring 67% to $30 million, driven by cost efficiencies and strong advertising growth at the New York Post.

3Forward Guidance and Outlook

Digital Growth: Continued focus on digital revenues, which now comprise 62% of total revenues.

Book Publishing: Positive trends expected in Q2, with anticipated stronger sales from upcoming releases.

Digital Real Estate: Anticipated growth driven by improving market conditions and lower mortgage rates.

Share Buybacks: Accelerated buyback program with a rate of approximately $2.5 million per day, reflecting confidence in the company's growth potential.

4Bad News, Challenges, or Points of Concern

Book Publishing: Facing challenges with a decline in orders and a significant write-off, although recent trends are improving.

Market Conditions: The U.S. housing market remains hampered by high interest rates, which could limit growth in the Digital Real Estate segment.

Advertising Trends: Mixed results in advertising, particularly in traditional media, though digital advertising at the New York Post showed strong growth.

5Notable Q&A Insights

Growth in Realtor: Management expressed optimism about sustaining revenue growth in Realtor despite the challenging housing market.

Share Buyback Strategy: There is potential to increase the buyback rate further if deemed optimal, given the company's robust cash position.

Risk & Compliance Growth: The segment is expected to benefit from stringent regulatory requirements, contributing to future revenue growth.

News Media Trajectory: The team highlighted ongoing cost efficiencies and the positive impact of the upcoming launch of the California Post on advertising revenue. Overall, News Corp reported a solid start to fiscal 2026, with strong performance in digital segments, though challenges in Book Publishing and the broader economic environment remain areas to monitor.