News Corp Q4 EPS Beats Estimates, Full-Year Revenues Rise 2%

News Corp reports Q4 adjusted EPS of 19c, beating consensus of 18c, and Q4 revenue of $2.11B, in line with consensus. For the full year, revenues rose 2% to $8.5B, and net income from continuing operations improved 71% to $648M. The company authorized a new $1B stock repurchase program, aiming to return capital to shareholders.

Title: News Corp Reports Strong Q4 Results, Authorizes $1 Billion Stock Repurchase Program

News Corp (NWS) reported its Q4 2025 earnings, revealing a modest increase in revenue and significant improvements in profitability. The company’s strategic initiatives, including a focus on digital innovation and cost management, have contributed to these results. News Corp's Q4 adjusted EPS was 19 cents, beating the consensus of 18 cents, while Q4 revenue came in at $2.1 billion, in line with consensus expectations. For the full year, revenues rose 2% to $8.5 billion, and net income from continuing operations improved by 71% to $648 million. The company authorized a new $1 billion stock repurchase program, aiming to return capital to shareholders.

Key Takeaways
- News Corp's Q4 revenues rose by 1% to $2.1 billion.
- Net income for Q4 increased by 28%, reaching $86 million.
- A new $1 billion stock repurchase program was announced.
- The company is focusing on three core pillars: Dow Jones, Digital Real Estate, and Book Publishing.
- News Corp sold its stake in Foxtel Group to DAZN.

Financial Highlights
- Full-year revenue reached $8.5 billion, a 2% increase.
- Total Segment EBITDA grew by 14% to $1.4 billion.
- Net income from continuing operations surged by 71% to $648 million.
- Profit margins improved by 170 basis points to 16.7%.
- Free cash flow increased by 5.7% to $571 million.

Outlook & Guidance
Looking forward, News Corp plans to accelerate its stock buyback program and continue investing in Dow Jones Professional Information Services. With a healthy current ratio of 1.68 and strong cash flow generation, the company is well-positioned to execute these initiatives. The company anticipates margin expansion in its B2B segments and is engaged in ongoing AI licensing negotiations. Future EPS forecasts for FY2026 are projected at $1.05, with revenue expectations set at $8.7 billion.

Executive Commentary
CEO Robert Thompson emphasized the role of artificial intelligence, stating, "AI IP powers AI," highlighting the company’s commitment to leveraging technology for growth. CFO Lavanya Chandrasekar noted, "The current share price is at a significant discount to net asset value," reflecting confidence in the company’s intrinsic value.

Risks and Challenges
The U.S. housing market remains sluggish due to high mortgage rates, impacting real estate segments. Australian residential listings have decreased by 8%, posing a challenge for the real estate business. Market saturation and competitive pressures in digital media and publishing could affect growth. Macroeconomic uncertainties and potential regulatory changes may impact future performance.

References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-news-corp-q4-2025-sees-revenue-growth-strategic-shifts-93CH-4171674