News Corporation Stock: Is Wall Street Bullish or Bearish?

Company Overview - News Corporation (NWSA) has a market capitalization of $13.6 billion and operates across five segments: Digital Real Estate Services, Dow Jones, Book Publishing, News Media, and Other, providing content and data products globally [1] Stock Performance - Over the past 52 weeks, NWSA shares have decreased by 17.3%, underperforming the S&P 500 Index, which has increased by 13.1% during the same period [2] - Year-to-date, NWSA shares are down 9.8%, contrasting with a slight rise in the S&P 500 Index [2] - Compared to the State Street Communication Services Select Sector SPDR ETF (XLC), which gained 12.6% over the past year, NWSA has lagged behind [3] Financial Results - Following the Q2 2026 results, NWSA shares fell by 3.8% due to a 21% year-over-year decline in net income from continuing operations, amounting to $242 million [6] - The decline in earnings was attributed to the absence of a previous year's one-time gain of $87 million from the sale of PropertyGuru and a $16 million one-time inventory write-off at HarperCollins' international operations [6] - Reported earnings per share (EPS) decreased to $0.34 [6] Future Earnings Expectations - For the fiscal year ending in June 2026, analysts project NWSA's adjusted EPS to grow by 11.2% year-over-year to $0.99 [7] - The company's earnings surprise history is mixed, with three out of the last four quarters either beating or meeting consensus estimates [7] - Among nine analysts covering the stock, the consensus rating is a "Moderate Buy," consisting of seven "Strong Buy" ratings, one "Hold," and one "Strong Sell" [7] Analyst Ratings and Price Targets - On November 25, 2025, JPMorgan lowered its price target for News Corp to $38 while maintaining an "Overweight" rating [8] - The mean price target of $37.63 indicates a potential upside of 61.3% from current levels, while the highest price target of $43 suggests an upside of 84.3% [8]