The News Corporation (ASX: NWS) share price is in focus today after the company revealed first quarter results for fiscal 2026, showing revenue rose 2% to $2.14 billion and net income from continuing operations edged up 1% to $150 million.
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What did News Corporation report?
- Revenue for the quarter was $2.14 billion, up 2% from $2.10 billion in the prior year
- Net income from continuing operations increased 1% to $150 million
- Total Segment EBITDA lifted 5% to $340 million
- Adjusted EPS rose to $0.22, compared to $0.20 last year
- Dow Jones segment delivered 6% revenue growth, while Digital Real Estate Services rose 5%
- News Media posted a 67% jump in segment EBITDA, driven by cost savings and stronger subscription pricing
What else do investors need to know?
News Corporation accelerated its share buyback program in the quarter, now repurchasing shares at more than four times the pace of fiscal 2025, reflecting a focus on improving shareholder returns. The book publishing division faced challenges, with a $13 million customer write-off contributing to a 28% drop in segment EBITDA.
Digital businesses continue to underpin group growth. Dow Jones digital revenues now represent 84% of that segment's total, while digital-only subscriptions for The Wall Street Journal climbed 11% year-on-year. Digital Real Estate Services, including growth at Realtor.com and REA Group, contributed strongly despite softer housing market activity in some regions.
What did News Corporation management say?
Chief Executive Robert Thomson said:
Following a sterling performance in fiscal 2025 – one that marked a record year for profitability on a continuing operations basis – News Corp continued to increase both revenue and profitability in the first quarter of fiscal 2026, led by strength at Dow Jones and Digital Real Estate Services, and bolstered by digital and AI-related revenues… Clearly, our current cash position is robust, and we expect to generate strong free cash flow this fiscal year, and have thus materially increased the rate of our share buybacks. We believe our shares are undervalued, given the sum of our valuable parts and our profit trajectory, and we will continue to focus on ways and means to maximize shareholder value.
What's next for News Corporation?
Management expects to deliver stronger free cash flow for the rest of fiscal 2026 and will keep prioritising digital transformation and cost efficiency, especially in segments challenged by softer consumer demand. News Corp is actively seeking new digital and AI-related partnerships and sees Intellectual Property (IP) as a key competitive advantage in the evolving technology landscape.
The company anticipates further announcements regarding collaborations that could positively impact future performance, as it continues investing in its core digital assets and content, while also focusing on optimising its portfolio and maximising shareholder returns.
News Corporation share price snapshot
News Corporation shares have declined 5% over the past 12 months, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 8% over the same period.
