News 2025 Q4 Earnings Strong Performance as Net Income Surges 993%

Generated by AI AgentAinvest Earnings Report Digest
Wednesday, Aug 6, 2025 1:49 am ET2min read
Aime RobotAime Summary

- News Corp (NWSA) reported Q4 2025 earnings exceeding expectations, with 993% net income growth to $776M and $1.94B revenue.

- Strong performance across segments, including $545M in News Media and $604M from Dow Jones, drove revenue growth.

- CEO Robert Thomson highlighted $1.42B EBITDA and announced a $1B accelerated stock buyback program amid AI-related IP protection concerns.

- Post-earnings 30-day buy-and-hold strategy showed 54.83% returns over three years, outperforming benchmarks despite 27.58% volatility.

News (NWSA) reported its fiscal 2025 Q4 earnings on August 5, 2025, with results that exceeded expectations. The company delivered robust financial performance, driven by strong revenue growth and a significant increase in net income. The results reflect solid operational execution across key segments and highlight News Corp’s ongoing transformation.

Revenue
News reported total revenue of $1.94 billion in fiscal 2025 Q4, an increase of 1.4% compared to $1.91 billion in the same period of the previous year. The company’s diverse business segments contributed to the growth, with the News Media segment leading with $545 million in revenue, followed by Book Publishing at $494 million. The Dow Jones division generated $604 million, while the Digital Real Estate Services segment reported $466 million in revenue.

Earnings/Net Income
News’s earnings surged dramatically, with EPS rising 1355.6% to $1.31 in fiscal 2025 Q4, compared to $0.09 in the prior-year period. The company’s net income reached $776 million, a 993.0% increase from $71 million in 2024 Q4, underscoring a significant improvement in profitability and strong cost management.

Price Action
On the stock market, NWSA edged down 0.51% on the latest trading day, gained 0.24% over the past week, and dropped 1.51% month-to-date, showing mixed short-term performance.

Post-Earnings Price Action Review
A strategy of buying NWSA shares following the announcement of its earnings and holding for 30 days proved highly effective over the past three years. This approach generated a 54.83% return, far outpacing the benchmark’s 0.00%. With a CAGR of 16.29%, the strategy reflected consistent growth and a Sharpe ratio of 0.59, indicating favorable risk-adjusted returns despite a 27.58% volatility level.

CEO Commentary
Robert Thomson, CEO of News Corp, highlighted the company’s strong performance in fiscal 2025, noting that total revenue rose 2% to $8.5 billion and net income from continuing operations increased 71% to $648 million. He also emphasized the record $1.42 billion in Total Segment EBITDA and announced a new $1 billion stock repurchase program, to be executed at an accelerated pace. Thomson raised concerns about the erosion of creative value from AI-related challenges and stressed the importance of intellectual property protection.

Guidance
The company did not provide specific guidance for future earnings or revenue but outlined the accelerated pace of the new $1 billion stock buyback program and the remaining $300 million from the previous authorization.

Additional News
On April 9, 2025, the city of Quanzhou, China, announced its third batch of 2025 "Quanxin Quan Yi" measures aimed at supporting businesses and the public. The eight initiatives focused on areas such as foreign-related services, AI applications, financial support, joint certificate processing, and maternity benefits, addressing key concerns for local enterprises and residents. The announcement was made through Quanzhouwang (Quanzhou Net), a regional news platform operated by Quanzhou Evening News and sponsored by the Quanzhou Municipal Committee. The website reiterated its commitment to legal compliance and content protection.

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