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

News Corp (NWSA) reported fiscal 2026 Q1 earnings on Nov 8, 2025, delivering mixed results. The company exceeded revenue estimates and saw net income growth despite a decline in EPS. Key segments like Digital Real Estate Services and Dow Jones drove performance, while stock price volatility highlighted investor uncertainty around the strategy of buying shares post-earnings dips.

Revenue

News Corp’s total revenue rose 1.9% year-over-year to $1.98 billion, narrowly surpassing the $1.94 billion reported in Q1 2025. Strong contributions came from the Dow Jones segment, which generated $586 million, reflecting robust demand for digital subscriptions and professional services. Digital Real Estate Services added $479 million, bolstered by growth at REA Group and Move. Meanwhile, Book Publishing revenue totaled $534 million, though it faced challenges from soft consumer spending and a distributor-related write-off. The News Media segment contributed $545 million, supported by higher circulation and subscription pricing in the U.K. and Australia.

Earnings/Net Income

The company’s EPS fell 4.8% to $0.20 in Q1 2026 from $0.21 in Q1 2025, signaling margin pressure. However, net income improved by 4.2% to $150 million, outpacing the $144 million recorded in the prior-year period. While the EPS decline warrants caution, the net income growth underscores improved operational efficiency.

Post-Earnings Price Action Review

The strategy of buying News Corp shares after quarterly revenue declines and holding for 30 days showed mixed outcomes over three years. While the 3-year annualized return reached 10%, the approach faced a 15% maximum drawdown during market downturns. Strong returns followed Q1 2024 and Q3 2024 earnings reports (20% and 15%, respectively), but Q2 and Q4 2024 saw losses of 5% and 10%. The strategy’s volatility mirrored broader market trends, with performance heavily influenced by earnings release dates and macroeconomic conditions. Investors should weigh the high-risk nature of this approach against their risk tolerance and market outlook before execution.

Additional News

Recent developments beyond earnings include strategic moves and capital allocation shifts. News Corp’s Dow Jones division acquired EcoMovement, a global EV charging data platform, to expand its energy insights offerings. CEO Robert Thomson emphasized digital growth, noting “Dow Jones and Digital Real Estate Services accounted for a record share of profits.” Additionally, the company accelerated its share buyback program, repurchasing stock at a pace four times higher than previous quarters, citing confidence in undervaluation and robust cash flow. These actions reflect a focus on high-margin digital expansion and shareholder returns.