News Corp (NWS) Citi’s 2026 Global TMT Conference summary

Business segment overview

• Core growth engines are Dow Jones, digital real estate, and HarperCollins Book Publishing, with traditional media as a fourth pillar.

• Dow Jones includes direct-to-consumer brands and B2B services like Risk & Compliance and Energy, which are key growth drivers.

• Digital real estate includes REA in Australia and realtor.com, considered highly valuable and underappreciated.

• HarperCollins is highlighted as a strong cash generator, with a significant portion of revenue from backlist titles and Christian publishing.

• Traditional media brands have historic and current content, now monetized through AI platform deals.

Financial performance and growth sustainability

• Achieved 14% EBITDA growth in fiscal 2024 and 2025, and 15% in 2026, with 40% cash flow growth in 2026 on 7% revenue growth.

• Three consecutive years of strong growth, not just a one-off performance.

• Portfolio restructuring through divestitures and bolt-on acquisitions has accelerated growth.

• 61% of revenue is now digital and recurring, tripling since the 2012-2013 spin-out.

• Culture of curiosity and tenacity is cited as a key driver of ongoing performance.

AI strategy and impact

• AI licensing deals with major platforms like OpenAI and Meta are generating incremental value.

• AI is seen as a net positive, with more upside than downside, despite some investor concerns about referral traffic.

• Proprietary, reliable content is increasingly valued by hyperscalers and consumers wary of unreliable AI content.

• AI is driving product innovation (e.g., RealAssist, Hamilton feature) and operational efficiencies across segments.

• Cost reductions and faster product development are realized through AI, especially in coding and design.