News Corporation reports Q3 FY26 profit jump as digital arms shine

The News Corporation (ASX: NWS) share price is in focus after the company reported a 9% jump in third quarter revenue to US$2.19 billion and a 13% lift in net income from continuing operations to US$121 million, powered by digital real estate, Dow Jones, and book publishing gains.

What did News Corporation report?

• Revenue rose 9% year on year to US$2.19 billion (Q3 FY25: US$2.01 billion).
• Net income from continuing operations grew 13% to US$121 million.
• Total Segment EBITDA increased 18% to US$343 million.
• Reported EPS from continuing operations was US$0.16 (Q3 FY25: US$0.14); Adjusted EPS was US$0.21 (Q3 FY25: US$0.17).
• Dow Jones revenues increased 8% to US$619 million, with strength in digital and Risk & Compliance.
• Book Publishing revenues up 8% to US$555 million; REA Group’s revenue rose 20% to US$325 million.

What else do investors need to know?

News Corp’s Digital Real Estate Services and Dow Jones segments saw double-digit growth, partly thanks to positive foreign exchange movements and a resilient Australian property market. The company also highlighted strong momentum in its book publishing arm, boosted by bestselling titles tied to new media releases.

News Corp continues to invest in digital expansion, with almost all of Dow Jones’ Wall Street Journal subscriptions now digital-only. Importantly, management remains focused on defending its intellectual property against unauthorised use by AI platforms and “dodgy digital firms,” while also benefiting from new licensing deals with tech firms such as Meta and OpenAI.

What’s next for News Corporation?

News Corp expects continued top-line growth, with strong contributions from digital real estate and information services. The company is optimistic about free cash flow generation for the full year, balancing higher capital expenditures with operational gains.

Investors can also look to developments in digital content licensing and subscription models, as well as the ongoing buyback program, which management believes showcases confidence in News Corp’s long-term value.

News Corporation share price snapshot

Over the past 12 months, News Corporation shares have declined 17%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 8% over the same period.

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The post News Corporation reports Q3 FY26 profit jump as digital arms shine appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.