News Corp (NWS) Q2 2026 earnings summary

Executive summary

• Second quarter revenue rose 6% year-over-year to $2.36 billion, led by Dow Jones, Digital Real Estate Services, and Book Publishing, with positive foreign currency impact.

• Net income from continuing operations was $242 million, down 21% due to the absence of a prior-year gain from REA Group's PropertyGuru sale and higher operating expenses.

• Total segment EBITDA increased 9% to $521 million, with adjusted EPS at $0.40, up from $0.33, and reported EPS at $0.34, down from $0.40.

• Profitability margin improved to 22.1%, and free cash flow for the six months was $136 million, up from $121 million.

• Management highlighted strong momentum in core segments and an expanded buyback program.

Financial highlights

• Dow Jones revenue increased 8% to $648 million, with segment EBITDA up 10% to $191 million and a record margin of nearly 30%.

• Digital Real Estate segment revenue rose 8% to $511 million, with EBITDA up 11% to $206 million; Realtor.com revenue grew 10% to $143 million.

• Book Publishing revenue grew 6% to $633 million, though EBITDA declined 2% due to a $16 million one-time inventory write-off at HarperCollins.

• News Media segment revenue was flat at $570 million, with EBITDA down 5% to $70 million, impacted by weak print advertising and California Post launch costs.

• Operating expenses rose 5% to $1.01 billion for the quarter, mainly due to higher Book Publishing costs and the inventory write-off.

Outlook and guidance

• Management expects favorable trends to continue into the third quarter, with strong performance in Dow Jones, Digital Real Estate, and Book Publishing.

• Liquidity needs are expected to be met for at least the next twelve months through cash, operations, and credit markets.

• Anticipated continued investments in California Post and ongoing cost efficiency focus in News Media amid challenging ad trends.

• Share repurchases expected to increase in the second half, supported by Foxtel loan repayment.

• No material changes to risk factors or forward-looking statements were disclosed.