Revenue Performance - Total revenues increased by $48 million, or 2%, to $2,144 million for the three months ended September 30, 2025, compared to $2,096 million in the same period of 2024[111] - Circulation and subscription revenues rose by $39 million, or 5%, to $782 million, while advertising revenues decreased by $4 million, or 1%, to $317 million[111] - Revenues at the Dow Jones segment increased by $34 million, or 6%, to $586 million for the three months ended September 30, 2025, driven by higher circulation and subscription revenues[132] - Digital revenues represented 84% of total revenues at the Dow Jones segment for the three months ended September 30, 2025, compared to 82% in the same period of fiscal 2025[132] - Revenues at the Digital Real Estate Services segment increased by $22 million, or 5%, to $479 million for the three months ended September 30, 2025[141] - News Media segment revenues increased by $4 million, or 1%, to $545 million for the three months ended September 30, 2025, driven by a $7 million increase in circulation and subscription revenues[145] Operating Expenses - Operating expenses decreased by $11 million, or 1%, to $941 million for the three months ended September 30, 2025[114] - Selling, general and administrative expenses increased by $44 million, or 5%, to $863 million, primarily due to higher employee and marketing costs[116] Net Income and Earnings - Net income from continuing operations was $150 million, an increase of $1 million, or 1%, compared to $149 million for the same period in 2024[125] - Net income for the three months ended September 30, 2025, was $150 million, an increase of $6 million, or 4%, compared to the same period in fiscal 2025[127] - Net income attributable to noncontrolling interests from continuing operations increased by $7 million, or 23%, for the three months ended September 30, 2025, primarily driven by higher earnings at REA Group[128] Segment Performance - The Digital Real Estate Services segment contributed to revenue growth, driven by higher revenues at Move and REA Group[112] - The Book Publishing segment experienced lower revenues due to decreased book sales, impacting overall performance[112] - Circulation and subscription revenues increased by $32 million, or 7%, to $491 million for the three months ended September 30, 2025, primarily due to growth in digital-only subscriptions[134] - Average daily digital-only subscriptions for The Wall Street Journal increased by 406 thousand, or 11%, to 4,217 thousand for the three months ended September 30, 2025[135] - Digital sales in the Book Publishing segment fell by 9%, representing approximately 23% of consumer revenues in Q3 2025, down from 25% in Q3 2024[143] - Segment EBITDA for Book Publishing decreased by $23 million, or 28%, to $58 million in Q3 2025, primarily due to a $13 million write-off of a customer receivable[144] - Segment EBITDA at the Digital Real Estate Services segment increased by $18 million, or 13%, to $158 million for the three months ended September 30, 2025[141] - Segment EBITDA for News Media increased by $12 million, or 67%, to $30 million in Q3 2025, attributed to cost savings initiatives and higher revenues[146] Cash Flow and Financing - As of September 30, 2025, the Company had cash and cash equivalents of $2.2 billion, with $720 million held by foreign subsidiaries[147][148] - Free cash flow improved to $4 million in Q3 2025, compared to a negative $49 million in the same period of 2024, due to higher cash provided by operating activities[161] - Net cash used in financing activities increased to $179 million in Q3 2025 from $109 million in Q3 2024, influenced by stock repurchases and dividend payments[156][157] - The Company announced a new stock repurchase program on July 15, 2025, authorizing the purchase of up to $1 billion in outstanding Class A and Class B Common Stock[150] - As of September 30, 2025, total borrowings amounted to $1,956 million, with $750 million of undrawn commitments available under the Revolving Facility[162] - HarperCollins entered into a finance leasing arrangement for up to $120 million for equipment, expected to enhance efficiencies[164] - The Equipment Lease will accrue interest based on the Term SOFR plus a margin of 1.475% and can be drawn until June 30, 2028[164] - The total commitments for operating leases as of September 30, 2025, amount to $1,565 million, with $216 million due in less than 1 year[167] Legal and Market Risk - The Company is involved in various legal proceedings, which may adversely affect its financial condition[168] - The Company establishes an accrued liability for legal claims when a loss is probable and can be reasonably estimated[169] - There has been no material change in the Company's assessment of its sensitivity to market risk since the last report[170]

Core Viewpoint - News Corp's CEO Robert Thomson emphasized that artificial intelligence companies must compensate for the data and journalism they utilize, highlighting the importance of valuing creativity and content in the AI landscape [1][4][8] Financial Performance - News Corp reported a 2% increase in revenue for the quarter ending September 30, reaching $2.14 billion, surpassing analyst expectations [4] - Net income from continuing operations rose by 1% to $150 million [4] - The News Media segment, which includes notable publications, saw revenues increase by 1% to $545 million, driven by higher cover and subscription prices in the UK and Australia [5] - Segment EBITDA for News Corp increased by 5% to $340 million, while the News Media segment's EBITDA surged 67% to $30 million due to cost efficiencies [5] Business Segments - Revenue at Dow Jones, which encompasses The Wall Street Journal, grew by 6% to $586 million, supported by a 16% increase in its professional information unit and rising digital subscriptions [9] - Realtor.com's parent company, Move, reported a 9% revenue increase to $152 million, marking its strongest quarterly growth since early 2022 [10] Strategic Insights - Thomson noted a positive trend in the recognition of the value of creativity and content by both companies and courts, indicating a shift in the perception of intellectual property in the AI era [8][9] - News Corp's legal and licensing strategy with AI firms is progressing, with expectations of announcing further partnerships that could positively impact results [12][13]

Core Insights - News Corp. reported a revenue of $2.14 billion for the quarter ended September 2025, reflecting a decline of 16.8% year-over-year, while EPS increased to $0.22 from $0.21 in the previous year [1] - The revenue exceeded the Zacks Consensus Estimate of $2.11 billion by 1.53%, and the EPS surpassed the consensus estimate of $0.18 by 22.22% [1] Revenue Performance - Dow Jones revenue was $586 million, slightly below the average estimate of $586.05 million, showing a year-over-year increase of 6.2% [4] - Book Publishing revenue reached $534 million, exceeding the average estimate of $530.29 million, but down 2.2% year-over-year [4] - Digital Real Estate Services generated $479 million, surpassing the average estimate of $473.39 million, with a year-over-year growth of 4.8% [4] - News Media revenue was $545 million, above the average estimate of $522.49 million, marking a 4.6% increase compared to the previous year [4] EBITDA Analysis - Dow Jones EBITDA was reported at $144 million, closely matching the average estimate of $144.07 million [4] - News Media EBITDA significantly improved to $30 million, compared to the average estimate of $16.34 million [4] - Other EBITDA was reported at -$50 million, better than the average estimate of -$58 million [4] - Book Publishing EBITDA was $58 million, below the average estimate of $69.29 million [4] - Digital Real Estate Services EBITDA was $158 million, slightly below the average estimate of $158.62 million [4] Stock Performance - Over the past month, News Corp. shares have declined by 5.1%, contrasting with a 1.3% increase in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Core Insights - News Corp reported Q3 CY2025 results that exceeded Wall Street's revenue expectations, with sales increasing by 2.3% year-on-year to $2.14 billion and a GAAP profit of $0.20 per share, which was 9.4% above analysts' consensus estimates [1][6]. Company Overview - News Corp, established in 2013 after a restructuring, is a multinational conglomerate involved in news publishing, broadcasting, digital media, and book publishing [3]. Revenue Growth - Despite a modest year-on-year revenue growth of 2.3%, News Corp's long-term performance has been inconsistent, with total sales of $8.5 billion for the trailing 12 months being close to its revenue five years ago, indicating lower quality business performance [4][6]. - Over the last two years, News Corp's revenue has declined by 5.1% annually, reflecting suppressed demand within the consumer discretionary sector [5]. Quarterly Performance - The company reported revenue of $2.14 billion, surpassing analyst estimates of $2.10 billion, and an EPS of $0.20 compared to the expected $0.18 [6]. - Adjusted EBITDA was $347 million, exceeding estimates of $331.6 million, with a margin of 16.2% [6]. - Operating margin improved significantly to 56.1%, up from 10.2% in the same quarter last year, and free cash flow turned positive at $4 million, compared to a negative $31 million in the same quarter last year [6]. Segment Performance - News Corp's revenue breakdown shows that its three key segments—Dow Jones, News Media, and Book Publishing—contributed 27.3%, 24.9%, and 25.4% of total revenue, respectively [7]. - Dow Jones and Book Publishing segments averaged year-on-year growth of 4.3% and 3.3%, while News Media experienced an average decline of 2.6% [7]. Future Outlook - Analysts project a revenue growth of 2.8% over the next 12 months, indicating expectations for improved performance from newer products and services, although this remains below the average for the sector [8].

Core Insights - The segment profits of the group that publishes The Wall Street Journal, MarketWatch, and Barron's increased by 10% [1] Financial Performance - The group reported a 10% rise in segment profits, indicating strong financial performance in its publishing operations [1]

Group 1 - News Corp exceeded Wall Street revenue estimates for the first quarter [1] - Growth was primarily driven by the Dow Jones and digital real estate services segments [1]

Financial Performance - Total revenue for the first quarter of fiscal 2026 was $2.14 billion, a 2% increase from $2.10 billion in the prior year, driven by growth in Dow Jones and Digital Real Estate Services segments[8]. - Net income from continuing operations was $150 million, a 1% increase compared to $149 million in the prior year, with Total Segment EBITDA rising 5% to $340 million[5]. - Adjusted EPS increased to $0.22 from $0.20 in the prior year, while reported EPS from continuing operations decreased to $0.20 from $0.21[12]. - Net income attributable to News Corporation stockholders for the three months ended September 30, 2025, was $112 million, a decrease of 5.9% from $119 million in the prior year[46]. - Net income from continuing operations for Q3 2025 was $150 million, a marginal increase of 1% from $149 million in Q3 2024[55]. - Adjusted net income for Q1 Fiscal 2026 was $122 million, compared to $117 million in Q1 Fiscal 2025, resulting in adjusted EPS of $0.22 versus $0.20[65]. Revenue Segments - Dow Jones revenues increased by 6% to $586 million, supported by a 16% growth in Risk & Compliance revenues[15]. - Digital Real Estate Services revenues rose 5% to $479 million, with Move's revenues increasing 9% to $152 million, marking the highest quarterly growth since Q2 fiscal 2022[20][23]. - Book Publishing segment revenues decreased by 2% to $534 million, impacted by a $13 million write-off of a customer receivable[24][26]. - News Media revenues increased by 1% to $545 million, driven by higher circulation and subscription revenues[27]. - Adjusted Revenues for Q3 2025 were $2,128 million, up 2% from $2,092 million in Q3 2024[59]. - Dow Jones segment reported Adjusted Revenues of $579 million, a 5% increase from $552 million in Q3 2024[61]. - Digital Real Estate Services segment saw Adjusted Revenues rise by 7% to $485 million from $455 million in Q3 2024[61]. - Book Publishing segment's Adjusted Revenues decreased by 4% to $522 million from $546 million in Q3 2024[61]. - News Media segment reported Adjusted Revenues of $542 million, a slight increase of 1% from $539 million in Q3 2024[61]. Cash Flow and Expenses - Free cash flow improved to $4 million from $(49) million in the prior year, primarily due to higher cash provided by operating activities[32]. - Operating expenses for the three months ended September 30, 2025, were $941 million, a decrease of 1.2% compared to $952 million in the prior year[46]. - The company reported a net cash used in financing activities from continuing operations of $179 million for the three months ended September 30, 2025, compared to $109 million in the prior year[52]. Digital and Advertising Performance - Digital revenues accounted for 68% of total advertising revenues, with a 2% increase in digital advertising offset by a 4% decrease in print advertising[18]. - Digital subscribers at News Corp Australia reached 1,162,000 as of September 30, 2025, up from 1,127,000 in the prior year, representing a growth of 3.1%[35]. - The Times and Sunday Times closing digital subscribers increased to 640,000, compared to 600,000 in the prior year, reflecting a growth of 6.7%[35]. - Advertising revenues for Q1 Fiscal 2026 were $317 million, a slight decrease from $321 million in Q1 Fiscal 2025, showing a 1% decline[69]. Asset and Cash Position - Cash and cash equivalents as of September 30, 2025, were $2,198 million, down from $2,403 million as of June 30, 2025, indicating a decrease of 8.5%[49]. - Total assets as of September 30, 2025, were $15,343 million, a decrease from $15,504 million as of June 30, 2025, reflecting a decline of 1.0%[49]. Currency Impact - The impact of foreign currency fluctuations on revenues was a decrease of $4 million in Q3 2025 compared to the previous year[59]. - Constant currency revenues for total revenues in Q1 Fiscal 2026 showed a 2% increase compared to the previous year, indicating stable performance despite foreign currency fluctuations[68]. - The company emphasizes the importance of constant currency revenues for assessing core business performance, excluding the impact of currency volatility[67].

Core Viewpoint - Wall Street analysts anticipate a decline in News Corp.'s quarterly earnings and revenues, indicating potential challenges for the company in the upcoming report [1]. Financial Performance Expectations - Analysts expect News Corp. to report quarterly earnings of $0.18 per share, reflecting a year-over-year decline of 14.3% [1]. - Revenue projections stand at $2.11 billion, down 18.1% from the same quarter last year [1]. - The consensus EPS estimate has remained unchanged over the past 30 days, indicating a reassessment of initial projections by analysts [1]. Revenue by Product Estimates - 'Revenues by Product (GAAP) - Dow Jones' is expected to reach $586.05 million, a 6.2% increase from the prior year [4]. - 'Revenues by Product (GAAP) - Book Publishing' is projected at $530.29 million, showing a decline of 2.9% from the previous year [4]. - 'Revenues by Product (GAAP) - Digital Real Estate Services' is estimated at $473.39 million, reflecting a 3.6% increase year-over-year [5]. - 'Revenues by Product (GAAP) - News Media' is expected to be $522.49 million, indicating a slight increase of 0.3% from the year-ago quarter [5]. EBITDA Estimates - 'EBITDA - Dow Jones' is projected to be $144.07 million, up from $131.00 million in the same quarter last year [6]. - 'EBITDA - News Media' is expected to reach $16.34 million, slightly up from $16.00 million year-over-year [6]. - 'EBITDA - Book Publishing' is estimated at $69.29 million, down from $81.00 million in the previous year [7]. - 'EBITDA - Digital Real Estate Services' is projected at $158.62 million, an increase from $140.00 million in the same quarter last year [7]. Stock Performance - News Corp. shares have decreased by 5.8% over the past month, contrasting with a 1% increase in the Zacks S&P 500 composite [7]. - The company holds a Zacks Rank 4 (Sell), indicating expectations of underperformance relative to the overall market in the near term [7].

Core Insights - News Corporation (NWSA) is expected to report first-quarter fiscal 2026 results on November 6, with revenues projected at $2.11 billion, reflecting an 18.06% decline year-over-year. Earnings per share are estimated to be 18 cents, indicating a 14.29% decrease from the previous year [1][7]. Financial Performance - The Zacks Consensus Estimate indicates a mixed earnings surprise history for News Corp, with one earnings beat, one miss, and one match in the last four quarters, resulting in an average surprise of 5.18% [2]. - The company's current Earnings ESP is 0.00%, and it holds a Zacks Rank of 4 (Sell), suggesting low odds for an earnings beat this time [6]. Segment Analysis - The News Media segment is anticipated to be negatively impacted by ongoing advertising softness, with a 4% revenue decline year-over-year in the previous quarter due to weaker ad demand and lower audience engagement [3]. - Factiva's customer disputes are expected to continue affecting performance, potentially limiting B2B growth and slowing subscription renewals, which could hurt profitability [4]. Positive Developments - The success of Move's product enhancements and pricing strategies is likely to have positively influenced News Corp's performance, with previous quarters showing revenue improvement driven by premium listing products and partnerships [5].

Core Insights - Brave Bison, a London-listed marketing group backed by Rupert Murdoch and Lord Ashcroft, has made a £50 million offer to acquire M&C Performance, a division of M&C Saatchi [1][2] - M&C Performance specializes in media planning and buying across digital channels, which is a significant growth area in the marketing industry [1] - The acquisition would involve issuing new stock and utilizing Brave Bison's debt facilities [3] Company Developments - M&C Performance's clients include major companies like Amazon and Meta [2] - Brave Bison has been active in acquisitions, having purchased five other businesses this year, including MiniMBA and Engage [2][3] - Brave Bison's market capitalization is approximately £82 million, while M&C Saatchi's market capitalization is around £160 million, reflecting a decline of 22% in M&C Saatchi's stock over the year [3][5] Strategic Context - The acquisition aligns with Brave Bison's strategic realignment and improvement in performance since the Green brothers took over in 2020 [4] - News Corporation's investment in Brave Bison earlier this year indicates a strengthening of its influencer marketing capabilities [4] - The market capitalization of M&C Saatchi has significantly decreased from over £300 million three years ago, highlighting the challenges faced by the company [4]