News | 10-Q: FY2026 Q2 Revenue Beats Estimate at USD 2.362 B

Revenue: As of FY2026 Q2, the actual value is USD 2.362 B, beating the estimate of USD 2.3 B.EPS: As of FY2026 Q2, the actual value is USD 0.34, missing the estimate of USD 0.344.EBIT: As of FY2026 Q2, the actual value is USD 358 M.Overall Company Performance (Continuing Operations)Net Income from Continuing OperationsFor the three months ended December 31, 2025, News Corporation reported net income from continuing operations of $242 million, a decrease of 21% compared to $306 million in the prior year period.For the six months ended December 31, 2025, net income from continuing operations was $392 million, a decrease of 14% compared to $455 million in the prior year period.Total Segment EBITDATotal Segment EBITDA for the three months ended December 31, 2025, was $521 million, an increase of 9% compared to $478 million in the prior year period.For the six months ended December 31, 2025, Total Segment EBITDA was $861 million, an increase of 7% compared to $803 million in the prior year period.Operating ExpensesOperating expenses increased by $45 million, or 5%, to - $1,008 million for the three months ended December 31, 2025, compared to - $963 million in the prior year period.For the six months ended December 31, 2025, operating expenses increased by $34 million, or 2%, to - $1,949 million, compared to - $1,915 million in the prior year period.Selling, General and Administrative ExpensesSelling, general and administrative expenses increased by $36 million, or 5%, to - $833 million for the three months ended December 31, 2025, compared to - $797 million in the prior year period.For the six months ended December 31, 2025, these expenses increased by $80 million, or 5%, to - $1,696 million, compared to - $1,616 million in the prior year period.Depreciation and AmortizationDepreciation and amortization expense increased by $5 million, or 4%, to - $118 million for the three months ended December 31, 2025, compared to - $113 million in the prior year period.For the six months ended December 31, 2025, this expense increased by $10 million, or 4%, to - $235 million, compared to - $225 million in the prior year period.Impairment and Restructuring ChargesImpairment and restructuring charges for the three months ended December 31, 2025, were - $30 million, compared to - $16 million in the prior year period.For the six months ended December 31, 2025, these charges totaled - $49 million, compared to - $38 million in the prior year period.Equity Losses of AffiliatesEquity losses of affiliates improved by $6 million, or 75%, to - $2 million for the three months ended December 31, 2025, compared to - $8 million in the prior year period.For the six months ended December 31, 2025, these losses improved by $7 million, or 64%, to - $4 million, compared to - $11 million in the prior year period.Interest Income (Expense), NetInterest income (expense), net, improved by $12 million to $9 million for the three months ended December 31, 2025, compared to - $3 million in the prior year period.For the six months ended December 31, 2025, it improved by $18 million to $15 million, compared to - $3 million in the prior year period.Other, NetOther, net, was - $13 million for the three months ended December 31, 2025, compared to $92 million in the prior year period, which included a gain on the sale of REA Group’s interest in PropertyGuru.For the six months ended December 31, 2025, Other, net, was - $9 million, compared to $114 million in the prior year period, primarily due to the PropertyGuru gain.Segmented Financial MetricsDow JonesRevenue: Total revenues for the three months ended December 31, 2025, were $648 million (8% increase YoY), and for the six months ended December 31, 2025, were $1,234 million (7% increase YoY).Circulation and subscription revenues increased by $36 million (8%) to $497 million for the three months, and by $68 million (7%) to $988 million for the six months.Professional information business revenues increased by $26 million (12%) for the three months and $48 million (11%) for the six months, driven by Risk & Compliance and Dow Jones Energy.Digital revenues represented 76% of circulation revenue for both the three and six months ended December 31, 2025.Advertising revenues increased by $12 million (10%) to $133 million for the three months, and by $12 million (6%) to $218 million for the six months, primarily due to higher digital advertising revenues from the financial services sector.Digital advertising revenues represented 65% of advertising revenue for the three months and 67% for the six months ended December 31, 2025.Digital revenues represented 82% of total revenues for the three months and 83% for the six months ended December 31, 2025.Segment EBITDA: Increased by $17 million (10%) to $191 million for the three months, and by $30 million (10%) to $335 million for the six months, primarily due to higher revenues, partially offset by increased employee and marketing costs.Capital Expenditures: $23 million for the three months and $38 million for the six months ended December 31, 2025.Total Assets: $4,104 million as of December 31, 2025.Goodwill and Intangible Assets, Net: $3,266 million as of December 31, 2025.Digital Real Estate ServicesRevenue: Total revenues for the three months ended December 31, 2025, were $511 million (8% increase YoY), and for the six months ended December 31, 2025, were $990 million (6% increase YoY).REA Group revenues increased by $25 million (7%) to $368 million for the three months, and by $34 million (5%) to $695 million for the six months, driven by higher Australian residential revenues and financial services revenues.Move revenues increased by $13 million (10%) to $143 million for the three months, and by $26 million (10%) to $295 million for the six months, driven by higher sales of RealPRO SelectSM and growth in seller, new homes, and rentals.Lead volumes at Move increased by 13% for the three months and 5% for the six months ended December 31, 2025, compared to the prior year periods.Segment EBITDA: Increased by $21 million (11%) to $206 million for the three months, and by $39 million (12%) to $364 million for the six months, due to higher revenues, partially offset by increased employee costs at Move and higher broker commissions at REA Group.Capital Expenditures: $37 million for the three months and $75 million for the six months ended December 31, 2025.Total Assets: $3,378 million as of December 31, 2025.Goodwill and Intangible Assets, Net: $1,890 million as of December 31, 2025.Book PublishingRevenue: Total revenues for the three months ended December 31, 2025, were $633 million (6% increase YoY), and for the six months ended December 31, 2025, were $1,167 million (2% increase YoY).The increase was driven by a $15 million impact from recent acquisitions and higher physical book sales for the three months, and a $22 million impact from recent acquisitions and higher physical book sales for the six months.Digital sales increased by 2% for the three months, driven by growth in e-books, but decreased by 4% for the six months, driven by lower audiobook and e-book sales.Digital sales represented approximately 20% of consumer revenues for the three months and 22% for the six months ended December 31, 2025.Backlist sales represented approximately 59% of consumer revenues for the three months and 62% for the six months ended December 31, 2025.Segment EBITDA: Decreased by $2 million (-2%) to $99 million for the three months, and by $25 million (-14%) to $157 million for the six months, primarily due to higher costs from sales volume, a - $16 million one-time inventory write-off, and a - $13 million write-off of a customer receivable.Capital Expenditures: $6 million for the three months and $14 million for the six months ended December 31, 2025.Total Assets: $3,003 million as of December 31, 2025.Goodwill and Intangible Assets, Net: $927 million as of December 31, 2025.News MediaRevenue: Total revenues were flat at $570 million for the three months ended December 31, 2025, and increased by $4 million to $1,115 million for the six months ended December 31, 2025.Circulation and subscription revenues increased by $11 million (4%) for the three months and $18 million (3%) for the six months, driven by price increases and digital subscriber growth.Advertising revenues decreased by $13 million (-6%) for the three months and $20 million (-5%) for the six months, primarily due to lower print advertising revenues.Segment EBITDA: Decreased by $4 million (-5%) to $70 million for the three months, primarily due to lower contributions from News Corp Australia and launch costs for the California Post. It increased by $8 million (9%) to $100 million for the six months, driven by cost savings and lower Talk costs.Capital Expenditures: $30 million for the three months and $48 million for the six months ended December 31, 2025.Total Assets: $2,095 million as of December 31, 2025.Goodwill and Intangible Assets, Net: $308 million as of December 31, 2025.Other SegmentSegment EBITDA: - $45 million for the three months ended December 31, 2025, compared to - $56 million in the prior year period. For the six months ended December 31, 2025, it was - $95 million, compared to - $101 million in the prior year period.Capital Expenditures: $3 million for the three months and $5 million for the six months ended December 31, 2025.Total Assets: $1,927 million as of December 31, 2025.Cash FlowNet Cash Provided by Operating Activities from Continuing OperationsNet cash provided by operating activities from continuing operations increased by $38 million to $316 million for the six months ended December 31, 2025, compared to $278 million in the prior year period.Free Cash FlowFree cash flow for the six months ended December 31, 2025, was $136 million, an increase from $121 million in the corresponding prior year period, primarily due to higher cash provided by operating activities, partially offset by higher capital expenditures.Other Key Financial MetricsCash and Cash EquivalentsAs of December 31, 2025, News Corporation had $2.1 billion in cash and cash equivalents, with $815 million held by foreign subsidiaries, of which $321 million was held by REA Group and not readily accessible by News Corporation directly.Stock Repurchase ProgramsAs of December 31, 2025, the remaining authorized amount under News Corporation’s Stock Repurchase Programs was approximately $1,044 million.During the three months ended December 31, 2025, News Corporation repurchased 6.3 million shares (4.4 million Class A and 1.9 million Class B) for $172 million.During the six months ended December 31, 2025, News Corporation repurchased 9.3 million shares (6.5 million Class A and 2.8 million Class B) for $266 million.DividendsIn August 2025, the Board of Directors declared a semi-annual cash dividend of $0.10 per share for Class A and Class B Common Stock, paid on October 8, 2025.In February 2026, the Board of Directors declared another semi-annual cash dividend of $0.10 per share, payable on April 8, 2026.BorrowingsAs of December 31, 2025, News Corporation had total borrowings of $1,951 million and $750 million of undrawn commitments under its Revolving Facility.REA Group had A$200 million of undrawn commitments available under its 2024 REA Credit Facility as of December 31, 2025, which was amended during the six months ended December 31, 2025, to reduce the total amount available.HarperCollins entered into a finance leasing arrangement for up to $120 million for new warehouse equipment in October 2025, with lease payments commencing after June 30, 2028, for a term of 7 years.Restructuring LiabilitiesAs of December 31, 2025, restructuring liabilities totaled $66 million, with $25 million classified as current and $41 million as non-current.Contract Liabilities and AssetsDeferred revenue balance was $474 million as of December 31, 2025.Contract assets were $72 million as of December 31, 2025.Outlook and StrategyNews Corporation evaluates potential future acquisitions and dispositions, which may involve cash, securities, or assumed indebtedness. The company anticipates that its current liquidity, including internally generated funds, cash and cash equivalents, and access to credit and capital markets, will be sufficient to meet its liquidity needs for at least the next twelve months, including debt repayment.