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- **Revenue Growth**: Q1 FY26 revenue up 2% to $2.14 billion, with Dow Jones and Digital Real Estate driving 84% of EBITDA.
- **AI Strategy Success**: Pursuing partnerships and lawsuits against AI companies, including a $1.5 billion award against Anthropic.
- **Buyback Acceleration**: Share buybacks at 4x prior pace, reflecting undervalued shares and confidence in growth.
- **Segment Strengths**: Realtor.com revenue up 9%, Risk & Compliance up 16%, and News Media EBITDA up 67%.
- **Future Outlook**: Expect continued growth in B2B, Digital Real Estate, and AI-related revenues, with strong free cash flow generation.

**CEO Summary Section**
- **Overall Performance**: Q1 FY26 revenue rose 2% to $2.14 billion, with total segment EBITDA up 5% to $340 million. Adjusted EPS increased to $0.22 from $0.20.
- **Dow Jones Strength**: EBITDA grew 10% to $144 million, driven by 16% growth in Risk & Compliance and 7% in Energy. Factiva resolved a customer dispute, contributing to 9% revenue growth.
- **Digital Real Estate Renaissance**: Realtor.com revenue up 9% to $152 million, with adjacencies (new homes, rentals) accounting for 22% of revenue. Digital Real Estate margin expanded to 33%.
- **Book Publishing Challenges**: Revenue declined 2% due to market sluggishness and a $13 million receivable write-off. However, recent weeks show order rebounds, with bestsellers like R.F. Kuang's *Katabasis*.
- **AI Strategy & Legal Action**: Pursuing partnerships and lawsuits against AI companies for unauthorized content use, including a $1.5 billion award against Anthropic.
- **Share Buybacks**: Accelerated buyback program at 4x prior pace, reflecting undervalued shares and confidence in growth.

**CFO Financial Commentary**
- **Financial Highlights**: GAAP net income $150 million, up 1% YoY. Digital revenue占比 62% of total, up from 34% in FY2018. Dow Jones and Digital Real Estate now account for 49% of revenue and 84% of EBITDA.
- **Segment Breakdown**: 
  - **Dow Jones**: 6% revenue growth to $586 million, with 84% from digital. EBITDA margin 25%, up 90bps YoY.
  - **Digital Real Estate**: 5% revenue growth to $479 million, EBITDA up 13% to $158 million. Realtor.com leads in engagement (5 visits per user vs. Zillow's 2.5).
  - **Book Publishing**: EBITDA down 28% to $58 million due to write-off. Digital sales 23% of consumer revenue, down 9% YoY.
  - **News Media**: 67% EBITDA growth to $30 million, driven by cost efficiencies and 19% ad revenue growth at New York Post.
- **Free Cash Flow**: Expect strong generation, with $380 million Foxtel loan repayment and $13 million investment in HarperCollins logistics.

**Q&A Key Highlights**
- **Realtor.com Growth**: CEO confident in continued expansion despite macro challenges, citing adjacencies and high-quality audience focus.
- **Buyback Acceleration**: CFO confirms 4x prior pace buybacks, with optionality to increase further.
- **WSJ Pricing Strategy**: Testing elasticity with price increases, supported by planned product improvements.
- **Risk & Compliance Runway**: 16% Q1 growth, driven by regulatory mandates (e.g., KYC regulations) and new GenAI capabilities.
- **News Media Efficiency**: 5.5% margin expansion through cost savings and digital ad growth at New York Post.
- **Legal & AI Strategy**: CEO emphasizes content's intrinsic value, pursuing partnerships and litigation to monetize IP.

News Corporation (NWSA) Q1 2026 Earnings Call Transcript

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NWSA

NWSA fundamentals

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