News (NASDAQ:NWS) reported fiscal second-quarter 2026 results that management described as “excellent,” citing accelerating revenue and profitability growth versus the prior quarter and what it called favorable signs for the second half of the fiscal year.
Chief Executive Robert Thomson said revenue rose 6% year over year to $2.4 billion, while total segment EBITDA increased 9% to $521 million. Profitability margin expanded to 22.1% from 21.4% in the prior quarter, and adjusted earnings per share came in at $0.40, up from $0.33 in the prior quarter. Thomson noted net income from continuing operations was $242 million, down 21% from the year-ago period, which he attributed to the absence of an $87 million gain last year tied to REA Group’s sale of PropertyGuru.
Management highlights shift toward recurring revenue and buybacks
Chief Financial Officer Lavanya Chandrashekar said the quarter marked the company’s eleventh consecutive quarter of year-over-year total segment EBITDA growth on a continuing operations basis. She added that three “core growth pillars”—Dow Jones, Digital Real Estate, and Book Publishing—collectively accounted for 95% of profitability in the quarter.
On capital allocation, Chandrashekar said the company repurchased $172 million in shares during the quarter, $132 million more than the year-ago period. She said management believes the stock remains materially undervalued relative to net asset value, and noted share repurchases in fiscal 2026 are expected to benefit from approximately $380 million repayment of Foxtel shareholder loans. Later in the Q&A, she said that at the current stock price, the company expects the purchase rate to be higher in the second half, with total dollars repurchased “meaningfully more” than in the first half.
Thomson also noted Moody’s has put the company’s outlook on positive following a recent upgrade, which he said reflected balance sheet strength and operating performance.
AI commentary and content licensing
A major theme of the call was the company’s positioning in an “age of AI.” Thomson argued that “provenance is paramount” and that proprietary content has growing value as AI creators seek reliable information. He stated that Anthropic has agreed to pay $1.5 billion for using pirated books and said HarperCollins and its authors “expect to receive our fair share of that payout starting later this calendar year.”
During Q&A, Thomson said he believes there is a “fundamental misconception” about AI’s impact on News Corp, contending that AI systems need real-time, real-world data and that the company produces “compelling content” that AI operators must pay to access. He referenced the company’s partnership with OpenAI and said News Corp already has AI deals and that negotiations are advanced for additional agreements.
On investment requirements, Chandrashekar said total capital expenditures are expected to be up moderately this year, but Dow Jones-specific capex is expected to be modestly down. She added that management expects “very strong free cash flow growth” for the year despite higher capex.
Dow Jones posts record quarter; B2B growth and pricing actions
Dow Jones was a key driver in the quarter. Thomson said the segment delivered record results on multiple fronts, including a 29.5% profit margin and a fourth consecutive quarter of double-digit EBITDA growth. Chandrashekar reported Dow Jones revenue of $648 million, up 8% year over year, and segment EBITDA of $191 million, up 10%, with margins near 30%.
Management highlighted strength across professional information offerings. Chandrashekar said professional information revenues rose 12%, while Risk & Compliance revenue increased 20% to $96 million, driven by new customers, new products, and higher yields. She also cited momentum in risk feeds and API solutions, and “increased penetration of advanced screening and monitoring products,” plus benefits from integrating Dragonfly and Oxford Analytica. Dow Jones Energy revenue rose 10% to $75 million, with customer retention around 90%, and included a modest contribution from the acquisition of Eco-Movement. Factiva posted revenue improvement, which Chandrashekar said benefited from new customer acquisition with a focus on GenAI.
Advertising improved as well. Thomson said digital advertising reached a record $87 million, up 12%, supported by demand from financial services. Chandrashekar said total advertising revenue rose 10% to $133 million, with print advertising up 7% and digital representing 65% of advertising revenue.
On the consumer side, Thomson said digital volumes increased 12% to over six million subscriptions, helped by enterprise partnerships that embed content in corporate workflows. Chandrashekar said circulation revenue increased 3%, with digital circulation up 7%. She also discussed pricing actions, including raising the full price rate for The Wall Street Journal digital subscription for new customers, increasing prices for some tenured customers, and adjusting promotions toward shorter durations and higher introductory pricing, which she said should help ARPU. Management noted that overall digital ARPU has been impacted by growth in enterprise partnerships, while “direct subscription ARPU” excluding enterprise has been improving.
Digital Real Estate and Book Publishing improve; News Media pressured by advertising
In Digital Real Estate Services, Thomson said Realtor.com revenue rose 10%, driven by premium products and improved lead volume, while REA in Australia benefited from yield growth and improved listing volumes in Sydney and Melbourne. Chandrashekar reported segment revenue of $511 million, up 8%, and segment EBITDA of $206 million, up 11%.
Chandrashekar said Realtor.com revenue rose 10% to $143 million, with leads up 13% and higher annual contract values tied to RealPro Select penetration. She said growth adjacencies—new homes, rentals, and sellers—accounted for 21% of Realtor.com revenue, up 100 basis points from the prior year, and average monthly unique users increased 1% to 62 million. Management also highlighted engagement and audience share metrics from Comscore, and referenced the launch of “Realtor.com Plus,” a platform intended to enhance home search through agent-client collaboration, transparency, and insights.
Asked about competitive pressure from Homes.com, Thomson said News Corp was “absolutely delighted” with Realtor.com’s progress and characterized its trajectory as positive. Chandrashekar added that Realtor.com has the highest engagement among portals at almost five visits per unique user and said visits to its properties reached 29% of total visits to all real estate portals in the second quarter.
At HarperCollins, management said results rebounded from a softer first quarter. Thomson said revenue grew 6% and expressed “mounting optimism” for the second half. Chandrashekar reported book publishing revenue of $633 million, up 6%, while segment EBITDA declined 2% to $99 million. She attributed the margin pressure to a $16 million one-time write-off primarily related to inventory at HarperCollins’ international operations.
In News Media, revenue was flat at $570 million and EBITDA fell 5% to $70 million. Management cited a challenging print advertising market and investment related to the January launch of the California Post. Thomson said The Times and The Sunday Times grew digital subscribers 7% to 659,000, while News Corp Australia reached nearly 1.2 million total subscribers, up 4%.
Looking ahead, Chandrashekar said trends at Dow Jones remain healthy with continued strong B2B growth expected, while advertising challenges in News Media are likely to persist as the company focuses on cost efficiencies. Thomson said management sees “patently positive” signs for the second half, supported by the company’s balance sheet, free cash flow, and its emphasis on the three core growth drivers.
About News (NASDAQ:NWS)
News Corporation (NASDAQ: NWS) is a global media and information services company engaged in news and digital real estate, book publishing and other media businesses. The company’s operations include print and digital newsbrands, business and financial information services, consumer platforms for property listings, and a major book publishing arm. Through its subsidiaries and brands, News Corp produces news content, market and financial reporting, online real-estate marketplaces and trade and consumer publishing products.
Key areas of activity include news and information, where the company publishes national and regional newspapers and operates business information services; book publishing through a well-known global publisher; and property-related digital businesses that operate online marketplaces for real estate listings.
