News Corp Announces Updates on $1 Billion Stock Repurchase Programs

News Corporation has updated its stock repurchase programs, which are authorized to acquire up to $1 billion in shares. The company is required to disclose daily transactions to the Australian Securities Exchange and quarterly/annual reports to maintain transparency. The repurchase is part of efforts to enhance shareholder value and optimize capital structure.

News Corp (NWS) has announced a significant stock repurchase program, authorizing the acquisition of up to $1 billion in shares. This move comes on the heels of the company's strong performance in the fourth quarter of 2025, as reported in its earnings call on August 5, 2025 [1]. The stock repurchase program is part of News Corp's strategy to enhance shareholder value and optimize its capital structure.

The company reported a 71% increase in net income, with revenues rising 2% to $8.5 billion and total segment EBITDA improving 14% to over $1.4 billion [1]. This robust financial performance is attributed to strong growth in digital real estate services, publishing, and professional information businesses. For instance, Dow Jones saw a 7% increase in revenue and a 10% rise in EBITDA, driven by the professional information business. Digital real estate services also showed resilience, with a 9% revenue increase for the year, despite a sluggish US housing market [1].

The stock repurchase program reflects News Corp's confidence in its financial position and ability to return capital to shareholders. The company has authorized the repurchase of up to $1 billion in shares, which will be disclosed daily to the Australian Securities Exchange and reported quarterly/annually to maintain transparency [1]. This move aligns with the company's commitment to shareholder value and its strategic initiatives to simplify operations and optimize capital structure.

However, News Corp also faced some challenges, including a softening book market and a challenging advertising environment in the news media segment. The overall book market showed signs of softness in recent months, impacting some divisions despite strong performance in religious and children's books. News media faced a 4% decline in revenue for the quarter, partially offset by increased cover prices and subscription pricing [1]. Factiva continued to be negatively impacted by a customer dispute, although decline rates moderated in the second half of the year.

The company's CapEx increased significantly in the fourth quarter, driven by investments in Dow Jones and other growth initiatives. This may impact short-term cash flow but is expected to support long-term growth. The company remains focused on capital returns and strategic contemplation, with the sale of Foxtel as a simplification step [1].

In conclusion, News Corp's strong Q4 performance and the announcement of a $1 billion stock repurchase program demonstrate the company's financial health and commitment to shareholder value. While challenges persist, the company's strategic initiatives and focus on growth areas such as digital real estate and professional information services position it well for future success.

References:
[1] https://www.gurufocus.com/news/3038987/news-corp-nws-q4-2025-earnings-call-highlights-record-profitability-and-strategic-growth-initiatives?r=caf6fe0e0db70d936033da5461e60141