News Corporation — Fiscal 2027 Q1 Earnings Summary

Financial Performance:

• Total revenues reached $2.28 billion, a 6% increase from $2.14 billion in the prior year; adjusted revenues increased 4% excluding foreign currency, acquisitions, and divestitures.
• Net income was $215 million, a 43% increase compared to $150 million in the prior year.
• Total Segment EBITDA was $403 million, a 19% increase from $340 million in the prior year; adjusted Total Segment EBITDA increased 13%.
• Reported EPS was $0.29 compared to $0.20 in the prior year; adjusted EPS was $0.28 compared to $0.22 in the prior year.
• Net cash provided by operating activities from continuing operations was $13 million, down from $85 million in the prior year.
• Free cash flow was $(89) million compared to $4 million in the prior year, driven by lower operating cash flow and a $21 million increase in capital expenditures.
• Cash and cash equivalents were $1.777 billion as of September 30, 2026, down from $2.095 billion at June 30, 2026.
• Borrowings increased to $2.012 billion ($3 million current, $2.009 billion non-current) from $1.989 billion at June 30, 2026.
• Deferred revenue was $546 million as of September 30, 2026, up from $543 million at June 30, 2026.

Guidance and Future Outlook:

• Management stated the company is "primed for further growth in the AI age," emphasizing that high-quality content is the essence of AI.
• The company aims to continue pursuing growth and increased profitability through diligent cost discipline and prudent capital stewardship.
• Management expressed optimism that other platforms will choose compensation over confiscation regarding intellectual property.

Business Segments and Product Lines:

• Dow Jones: Revenues increased 8% to $630 million, driven by higher circulation, licensing, and digital advertising. Segment EBITDA rose 11% to $160 million. Digital revenues represented 85% of total segment revenues. Total average subscriptions grew 8% to over 6.9 million; digital-only subscriptions grew 10% to nearly 6.5 million. Dow Jones Risk & Compliance grew 11% to $104 million; Dow Jones Energy grew 8% to $79 million.
• Digital Real Estate Services: Revenues increased 10% to $529 million, with Segment EBITDA rising 34% to $212 million.
  • REA Group: Revenues rose 13% to $369 million, including an $27 million positive foreign currency impact. Australian national residential buy listing volumes declined 2%.
  • Move: Revenues increased 5% to $160 million. Average monthly unique users on Realtor.com® decreased 8% to 66 million, while lead volumes decreased 11%.
• Book Publishing: Revenues increased 9% to $582 million, with Segment EBITDA up 29% to $75 million. Digital sales grew 6%, representing 23% of consumer revenues. Backlist sales accounted for approximately 66% of consumer revenues.
• News Media: Revenues decreased 1% to $540 million, with Segment EBITDA declining 40% to $18 million. Digital revenues represented 41% of segment revenues.
  • News Corp Australia digital subscribers closed at 1,163,000.
  • The Times and Sunday Times digital subscribers closed at 686,000.
  • The Sun's digital offering reached 57 million monthly unique users (down from 77 million).
  • New York Post's digital network reached 84 million monthly unique users (down from 94 million).

Market and Competitive Landscape:

• Digital Real Estate Services, Dow Jones, and Book Publishing collectively delivered robust results despite volatile economic conditions.
• The company maintains partnerships with OpenAI and Meta regarding intellectual property protection.
• In the Digital Real Estate Services segment, Move continues to lead the industry in engagement as measured by visits per unique user.

Risks and Challenges:

• News Media segment faced lower print advertising revenues and print volume declines.
• REA Group experienced unfavorable geographical mix and declines in Sydney and Melbourne residential buy listing volumes.
• Move experienced a decrease in average monthly unique users and lead volumes driven by broader macroeconomic trends.
• Free cash flow was negatively impacted by timing of working capital movements and higher tax payments.
• The company faces ongoing litigation and investigations related to U.K. Newspaper Matters and other legal matters.

Management Commentary and Tone:

• CEO Robert Thomson described the quarter as a "record first quarter performance" and noted the company's transformation into a "thriving, higher-margin business."
• Management highlighted the 14th consecutive quarter of year-over-year profitability growth.
• The tone regarding intellectual property was assertive, stating the company will "woo and we will sue" to protect content.

Other Key Points:

• The company reported a gain related to the divestiture of REA India's remaining business, contributing to higher Other, net income.
• REA Group hosted an investor briefing in Sydney on October 23, 2026.
• The company repurchased News Corp shares for $166 million in the quarter, compared to $92 million in the prior year.
• Dividends paid were $61 million in the quarter, compared to $47 million in the prior year.
• Capital expenditures increased to $102 million from $81 million in the prior year.
• The company recognized a $13 million write-off of a customer receivable in the prior year's Book Publishing segment, which was absent in the current quarter.