News Corp Q2 Sales Surpass Estimates with Flat YoY Revenue and Strong Non-GAAP Profit

News Corp reported Q2 CY2025 results with revenue of $2.11 billion, flat YoY and a 1% beat on estimates. Non-GAAP profit was $0.89 per share, significantly above analyst estimates. The company's operating margin was 6.5%, down from 9% in the same quarter last year. Revenue growth has been weak, declining 1.3% per year over the last five years.

Global media and publishing company News Corp (NASDAQ:NWSA) has released its Q2 CY2025 earnings report, showcasing a flat year-on-year (YoY) revenue of $2.11 billion, a 1% beat over Wall Street's estimates [3]. The company's non-GAAP profit per share stood at $0.89, significantly exceeding analysts' expectations. Despite the revenue flatness, News Corp's operating margin contracted to 6.5%, down from 9% in the same quarter last year [3].

News Corp's revenue has been weak over the past five years, declining by 1.3% annually. However, this quarter's results indicate a 1% beat on revenue estimates, suggesting a positive trend despite the overall decline. The company's adjusted earnings per share (EPS) grew by 48.7% compounded annually over the last five years, reflecting management's adaptation to a challenging demand environment [3].

Looking ahead, sell-side analysts expect News Corp's revenue to grow by 3.3% over the next 12 months, driven by newer products and services. However, this growth rate is still below the sector's average, indicating that the company may face continued headwinds in its revenue performance [3].

News Corp's stock price remains stable, trading at $29.10 with an average analyst price target of $36.28. The company's peers in the consumer discretionary sector have shown mixed results, with Scholastic reporting a 7% YoY revenue increase and Hasbro experiencing a 1.5% decline [1, 2].

In summary, News Corp's Q2 CY2025 results demonstrate a strong profit beat but a flat revenue performance. The company's long-term revenue growth has been weak, but this quarter's results show a positive trend. Investors should closely monitor News Corp's ability to sustain this momentum and adapt to changing market conditions.

References:
[1] https://www.indexbox.io/blog/news-corp-set-to-release-latest-earnings-results/
[2] https://www.tradingview.com/news/stockstory:8313fda07094b:0-news-corp-nwsa-q2-earnings-what-to-expect/
[3] https://stockstory.org/us/stocks/nasdaq/nwsa/news/earnings/news-corps-nasdaqnwsa-q2-sales-top-estimates