News Corporation — Fiscal 2026 Earnings Summary

Financial Performance

• Fourth quarter revenues were $2.34 billion, an 11% increase compared to $2.11 billion in the prior year.
• Full year revenues were $9.03 billion, a 7% increase compared to $8.45 billion in the prior year.
• Fourth quarter net income from continuing operations was $230 million, a 167% increase compared to $86 million in the prior year.
• Full year net income from continuing operations was $743 million, a 15% increase compared to $648 million in the prior year.
• Fourth quarter Total Segment EBITDA was $423 million, a 31% increase compared to $322 million in the prior year.
• Full year Total Segment EBITDA was $1.63 billion, a 15% increase compared to $1.42 billion in the prior year.
• Operating cash flow for the full year increased 26% to $1.24 billion.
• Full year free cash flow was $811 million, a 42% increase compared to the prior year.
• Net cash provided by operating activities from continuing operations was $1,237 million for the fiscal year ended June 30, 2026, compared to $978 million in the prior year.
• Capital expenditures were $426 million for the fiscal year ended June 30, 2026, compared to $407 million in the prior year.
• Diluted net income from continuing operations per share was $1.03 for the full year, compared to $0.84 in the prior year.
• Adjusted diluted EPS was $1.18 for the full year, compared to $0.89 in the prior year.
• Deferred revenue increased to $543 million as of June 30, 2026, from $498 million in the prior year.
• Total assets were $15.54 billion as of June 30, 2026, compared to $15.50 billion in the prior year.
• Total borrowings were $1,989 million as of June 30, 2026, compared to $1,962 million ($1,937 million non-current + $25 million current) in the prior year.

Guidance and Future Outlook

• No specific forward financial guidance or numerical targets for future periods were provided in the press release.
• Management emphasized a sustained focus on reinvestment in core growth engines and transformation to a digital-first company.
• The company views itself as a critical participant in the emerging AI ecosystem, leveraging trusted content relationships with OpenAI and Meta.
• Management indicated advanced discussions with several other companies regarding AI content partnerships.

Business Segments and Product Lines

• Dow Jones: Fourth quarter revenues rose 7% to $644 million; full year revenues rose 7% to $2.497 billion. Segment EBITDA grew 20% in the quarter and 13% for the year. Digital revenues represented 84% of total revenues. Total average subscriptions to news products were over 6.7 million (up 7%), with digital-only subscriptions at nearly 6.3 million (up 9%). The Wall Street Journal digital-only subscriptions grew 8% to nearly 4.5 million.
• Digital Real Estate Services: Fourth quarter revenues rose 19% to $553 million; full year revenues rose 12% to $2.016 billion. Segment EBITDA grew 46% in the quarter and 23% for the year. REA Group revenues rose 21% in the quarter and 12% for the year. Move revenues rose 13% in the quarter and 11% for the year. REA India announced the sale of its remaining business, Housing.com, to Aurum Proptech Limited.
• Book Publishing: Fourth quarter revenues rose 15% to $566 million; full year revenues rose 6% to $2.288 billion. Segment EBITDA increased 14% in the quarter but decreased 3% for the year due to higher costs and write-offs. Digital sales increased 12% in the quarter and 4% for the year.
• News Media: Fourth quarter revenues rose 5% to $574 million; full year revenues rose 3% to $2.227 billion. Segment EBITDA decreased 14% in the quarter and 9% for the year, driven by costs related to the California Post launch and FIFA World Cup broadcasting. Digital revenues represented 41% of segment revenues in the quarter. The Times and Sunday Times digital subscribers reached 681,000 (up from 640,000). The Sun's digital offering reached 65 million global monthly unique users. New York Post's digital network reached 77 million unique users.

Market and Competitive Landscape

• Move's Realtor.com® achieved 33% of total visits to all U.S. real estate portals according to Comscore, leading the industry in engagement.
• REA Group saw Australian national residential buy listing volumes rise 11%, with listings in Sydney and Melbourne each up 8%.
• The company noted broader macroeconomic trends impacting Move's average monthly unique users, which decreased 6% to 68 million, though volumes increased 1%.
• The company is taking aggressive action against entities pilfering content for AI training, stating they will pursue "pilferers" and warn clients of "crass kleptomaniacs."

Risks and Challenges

• Book Publishing segment EBITDA was negatively impacted by a $16 million one-time write-off related to inventory at HarperCollins' international operations and a $13 million write-off of a customer receivable related to a closed book distributor.
• News Media segment EBITDA was pressured by costs associated with the recently launched California Post and higher costs at News Broadcasting related to the FIFA World Cup.
• Digital Real Estate Services EBITDA for the full year was partially offset by higher employee costs primarily at Move, higher broker commissions, and higher marketing costs.
• Foreign currency fluctuations had a $71 million positive impact on Q4 revenues and a $189 million positive impact on full-year revenues.

Management Commentary and Tone

• CEO Robert Thomson described the fourth quarter as "exceptional" with the "highest profitability on record."
• Management highlighted the company's "woe and sue approach" regarding AI, emphasizing the protection of content and the pursuit of legal action against content theft.
• The tone was confident regarding the company's position in the AI ecosystem and the value of its trusted content.
• Management noted that free cash flow increased significantly, enabling an aggressive capital return strategy.

Other Key Points

• The company declared a semi-annual cash dividend of $0.10 per share for Class A and Class B Common Stock, payable on October 7, 2026.
• Share repurchases accelerated to $643 million for the fiscal year, well over four times the prior year's rate ($150 million for News Corp shares plus $141 million for REA Group shares).
• REA Group announced the sale of its remaining business, Housing.com, to Aurum Proptech Limited.
• The company reported a gain on the sale of REA Group's investment in PropertyGuru in the prior year, which contributed to lower "Other, net" in the current year.
• A $12 million cost related to the withdrawn offer to acquire Rightmove in the prior year was absent in the current year, positively impacting Digital Real Estate Services EBITDA.
• The company operates primarily in the United States, Australia, and the United Kingdom.