News 2026 Q1 Earnings Beats Expectations with 4.2% Net Income Growth

News Corp (NWSA) reported fiscal 2026 Q1 earnings on November 8, 2025, delivering results that exceeded revenue and profit estimates. , . , , reflecting improved operational efficiency.

Revenue

, . , respectively, . The performance was driven by strong growth in digital subscriptions and real estate services, offsetting declines in book publishing and print advertising.

Earnings/Net Income

, , underscoring the company’s ability to maintain profitability despite revenue challenges.

Post-Earnings Price Action Review

The strategy of purchasing NWSA shares following a quarterly revenue drop and holding for 30 days showed favorable performance over the past three years. The initial 30-day holding period allowed for a recovery in most cases, with only a minor decline in the 2023 Q1 scenario. Long-term holding through the end of the third quarter demonstrated significant gains, , , respectively, outperforming the market. This indicates the strategy effectively captured post-earnings price appreciation over extended periods.

Additional News

1. Share Buyback Acceleration: News Corp accelerated its repurchase program, , reflecting confidence in the stock’s undervaluation.

2. Dow Jones Acquisition: The company acquired EcoMovement, a platform for EV charging station data, to expand its digital offerings in energy and mobility.

3. Zacks Rank Downgrade: NWSA received a Zacks Rank #4 (Sell), signaling potential underperformance against broader market benchmarks in the near term.

CEO Commentary

CEO highlighted the role of digital growth and real estate recovery in driving performance, noting that Dow Jones and Digital Real Estate Services accounted for a record share of profits. He also addressed challenges in book publishing, , but expressed optimism about rebounding trends in bestsellers and cost efficiencies.

Guidance

The company expects continued growth in digital subscriptions, real estate services, and cost discipline in media operations. Management emphasized AI-driven innovations and portfolio optimization as key drivers for future profitability.

Price Action

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