News Corp (NWS) Q1 2027 earnings summary

Executive summary

• Q1 FY27 revenue was $2.281B, up 6%; net income rose to $215M from $150M and Total Segment EBITDA increased 19% to $403M.

• Adjusted revenue increased 4% to $2.216B and adjusted Total Segment EBITDA rose 13% to $392M.

• Digital Real Estate Services, Dow Jones and Book Publishing collectively grew segment EBITDA 24%; profitability growth continued for a 14th consecutive quarter.

Financial highlights

• Reported diluted EPS was $0.29 versus $0.20; adjusted diluted EPS was $0.28 versus $0.22. Net income attributable to stockholders was $159M versus $112M.

• Circulation and subscription revenue rose 5% to $823M, advertising increased 2% to $323M, consumer revenue grew 9% to $556M and real estate revenue rose 13% to $418M.

• Foreign currency movements added $43M, or 2%, to consolidated revenue; operating expenses increased 5% and SG&A rose 3%.

• Other income included a $37M gain on the REA India sale; net income included $38M of Other, net versus $4M a year earlier.

Outlook and guidance

• Dow Jones expects continued strong revenue performance, disciplined reinvestment and further margin expansion.

• REA is pursuing marketplace growth through new offerings, product enhancements and adjacencies alongside cost efficiencies; October listings fell 13% YoY, or 8% excluding one fewer working day.

• Realtor.com is focused on revenue growth and scaling profitability amid higher mortgage rates and difficult housing conditions; recent rate increases may continue to weigh on the U.S. market.

• Book Publishing expects healthy trends and higher costs supporting a strong frontlist; News Media expects Q1-like trends and modest incremental California Post costs.

• Free cash flow is expected to be second-half weighted; management expressed confidence in strong FY2027 free cash flow.