News Corp (NWS) Q3 2026 earnings summary

Executive summary

• Achieved 12th consecutive quarter of profitability growth from continuing operations, with total revenue up 9% year-over-year to $2.19 billion and segment EBITDA up 18% to $343 million, driven by Digital Real Estate Services, Dow Jones, and Book Publishing.

• Net income from continuing operations rose 13% to $121 million, with both EPS and adjusted EPS notably higher compared to the prior year.

• Strategic focus on Dow Jones, Digital Real Estate Services, and Book Publishing drove double-digit profit increases in each segment.

• Accelerated share buyback program, repurchasing $456 million in shares in the nine months ended March 31, 2026, reflecting belief that shares are undervalued.

• Robust free cash flow and strong cash position provide flexibility for long-term value creation.

Financial highlights

• Total revenue: $2.19 billion, up 9% year-over-year; segment EBITDA: $343 million, up 18%; margin expanded to 15.7%.

• Adjusted revenue up 4%, adjusted segment EBITDA up 13%.

• EPS from continuing operations: $0.16; adjusted EPS: $0.21, both higher than the prior year.

• Free cash flow for the nine months ended March 31, 2026 was $535 million, slightly down from $539 million year-over-year due to higher capital expenditures.

• Operating margin for the quarter was 16%.

Outlook and guidance

• Management expects record profitability for the fiscal year, citing strong Q4 performance to date.

• Anticipates strong free cash flow growth for the full year despite higher capital expenditures.

• Digital Real Estate Services outlook positive, with Australian new buy listings up 19% in April; U.S. housing recovery may be impacted by mortgage rates.

• Book Publishing trends favorable, with anticipated benefit from a stronger frontlist program.

• News Media to incur incremental costs from California Post launch but expects benefits from new content licensing revenues.