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News Corporation Class B (NWS)
NASDAQ:NWS
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News Class B
(NASDAQ:NWS)
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Rating:63Neutral
Price Target:
$28.00
▼(-4.50% Downside)
Action:ReiteratedDate:03/04/26
The score is driven primarily by improving fundamentals (stronger profitability and manageable leverage) and a constructive earnings call highlighting continued EBITDA growth, strong free-cash-flow expectations, and accelerated buybacks. These positives are tempered by weak technical momentum (price below major moving averages with negative MACD) and a relatively rich valuation (high P/E with a low dividend yield).
Positive Factors
Improved profitability and margins
News Corp's rebound to mid‑teens net margins and stronger ROE indicates durable operating improvement and better cost discipline. Sustained margin expansion increases cash generation, supports reinvestment in digital growth and debt reduction, and reduces earnings sensitivity to cyclical ad markets over coming quarters.
Strong cash generation enabling buybacks
Robust free cash flow and a planned ~$380M loan repayment provide structural flexibility to accelerate buybacks and return capital. Reliable cash generation enhances creditor confidence (credit upgrade referenced) and gives management options to fund M&A, digital investments, or continued shareholder returns without compromising the balance sheet.
High‑quality B2B digital franchises
Dow Jones' high-margin, subscription‑heavy B2B mix (Risk & Compliance +20%) offers durable recurring revenue and pricing power. Large digital share reduces exposure to ad cycles, supports margin sustainability, and provides long‑term monetization avenues (subscriptions, data, AI/IP licensing) that are less cyclical than consumer ad revenue.
Negative Factors
Uneven revenue trends
Large negative trailing revenue growth reflects volatility across segments and a sharp prior decline, undermining top‑line predictability. Persistent uneven revenue complicates investment planning, raises risk that margin gains may reverse if key segments weaken, and increases reliance on buybacks to prop shareholder returns.
Declining free cash flow and moderate conversion
While operating cash flow is positive, falling free cash flow and only ~66% conversion raise sustainability concerns. Weaker FCF constrains room for capex, M&A, and buybacks if profitability softens, and increases dependence on continued margin improvement to maintain balance sheet trajectory and support credit metrics.
Housing cycle and legacy media headwinds
Exposure to housing markets and legacy print advertising creates structural volatility: REA’s performance depends on cyclical listings, and News Media faces secular print ad decline. These sector dynamics require sustained digital monetization to offset cyclical and structural revenue pressures across several quarters.
News Class B (NWS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.08B
Dividend Yield0.67%
Average Volume (3M)938.61K
Price to Earnings (P/E)21.8
Beta (1Y)0.81
Revenue Growth-16.36%
EPS Growth29.53%
CountryUS
Employees23,900
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)0.40
Shares Outstanding185,152,270
10 Day Avg. Volume1,392,404
30 Day Avg. Volume938,613
Financial Highlights & Ratios
PEG Ratio0.56
Price to Book (P/B)2.22
Price to Sales (P/S)2.30
P/FCF Ratio26.79
Enterprise Value/Market Cap1.03
Enterprise Value/Revenue1.69
Enterprise Value/Gross Profit3.07
Enterprise Value/Ebitda9.99
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.05
Revenue Forecast (FY)$8.81B
News Class B Business Overview & Revenue Model
Company DescriptionNews Corporation, a media and information services company, creates and distributes authoritative and engaging content, and other products and services for consumers and businesses worldwide. It operates in six segments: Digital Real Estate Services, Subscription Video Services, Dow Jones, Book Publishing, News Media, and Other. The company distributes content and data products, including The Wall Street Journal, Barron's, MarketWatch, Investor's Business Daily, Factiva, Dow Jones Risk & Compliance, Dow Jones Newswires, and OPIS through various media channels, such as newspapers, newswires, websites, mobile apps, newsletters, magazines, proprietary databases, live journalism, video, and podcasts. It also owns and operates daily, Sunday, weekly, and bi-weekly newspapers comprising The Australian, The Weekend Australian, The Daily Telegraph, The Sunday Telegraph, Herald Sun, Sunday Herald Sun, The Courier Mail, The Sunday Mail, The Advertiser, Sunday Mail, The Sun, The Sun on Sunday, The Times, The Sunday Times, and New York Post, as well as digital mastheads and other websites. In addition, the company publishes general fiction, nonfiction, children's, and religious books; provides sports, entertainment, and news services to pay-TV and streaming subscribers, and other commercial licensees through cable, satellite, and internet distribution; and broadcasts rights to live sporting events. Further, it offers property and property-related advertising and services on its websites and mobile applications; online real estate services; and financial services. The company was founded in 2012 and is headquartered in New York, New York.
How the Company Makes MoneyNWS generates revenue through several key streams. The primary source of income comes from advertising sales, where the company sells advertising space across its television networks, digital platforms, and publications. Additionally, NWS earns subscription fees from its cable and streaming services, where consumers pay for premium content access. The company also engages in syndication, licensing its content to third-party networks and platforms for a fee. Significant partnerships with advertisers and technology companies enhance its digital reach and provide additional monetization opportunities, contributing to its overall earnings.
News Class B Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call emphasized broad, multi-segment operational momentum—notably at Dow Jones and Digital Real Estate—driving revenue, EBITDA and margin expansion, stronger adjusted EPS, and accelerated buybacks backed by robust free cash flow and an improved credit outlook. Offsets include a GAAP net income decline due to a prior-year nonrecurring gain, a HarperCollins inventory write-off that pressured margins, flat News Media revenue with print ad weakness, and continued housing-market variability in Australia/India. On balance, the positive, recurring-growth trends, record Dow Jones performance, and strong cash returns to shareholders outweigh the transitory and segment-specific headwinds.Q2-2026 Updates
Positive Updates
Company-wide Revenue and Profitability Improvement
Total revenue rose 6% year-over-year to $2.4 billion in the quarter. Total segment EBITDA increased 9% to $521 million and adjusted total segment EBITDA rose 7% year-over-year. Profitability margin improved by ~70 basis points to 22.1%. Adjusted EPS was $0.40 versus $0.33 in the prior year.
Dow Jones Record Quarter and Strong B2B Performance
Dow Jones revenue grew 8% to $648 million and segment EBITDA rose 10% to $191 million, driving a record margin near 29.5–30% (up ~50 bps YoY). Digital revenues were 82% of segment revenues. Professional Information (B2B) revenue increased 12%; Risk & Compliance was up 20% to $96 million. Digital advertising reached a record $87 million, up 12%. Digital subscriptions increased ~12% to over 6 million (digital-only subscriptions up 12% and +133k sequentially).
Digital Real Estate Momentum (REA and Realtor.com)
Digital Real Estate segment revenues rose 8% to $511 million and segment EBITDA increased 11% to $206 million (12% adjusted). REA revenue grew 7% to $368 million with Australian revenues up ~10%. Realtor.com revenue grew 10% to $143 million; lead volumes improved 13%; average monthly unique users were ~62 million (+1%); portal visits share reached 29% and engagement remained high (~4.8–5 visits per unique user). Adjacent businesses (new homes, rentals, sellers) accounted for 21% of revenues (up 100 bps YoY).
Book Publishing Recovery and Strong Frontlist
HarperCollins revenue increased 6% to $633 million, driven by a stronger frontlist and growth in the faith segment. Digital revenues grew 2% and e-book sales rose 7%. Management signaled improving trends heading into the back half of the year and cited notable upcoming titles and potential streaming-linked demand.
Balance Sheet Strength and Accelerated Buybacks
The company repurchased $172 million of shares in the quarter (up $132 million YoY) and said buybacks are running ~4x the prior year pace with expectations for higher repurchases in H2. Management cited strong free cash flow, a robust balance sheet, and a recent Moody’s upgrade with a positive outlook. Foxtel shareholder loan repayment (~$380 million) expected to further support repurchases.
AI and IP Monetization Opportunities
Management highlighted AI-related monetization potential for proprietary content, noting advanced/expanding deals (e.g., partnership with OpenAI and expanded Bloomberg AI rights for Dow Jones). Company referenced industry precedent (Anthropic $1.5 billion payout for pirated books) and expects to receive AI-related IP-driven payments later this calendar year, positioning proprietary content as a growth/monetization lever.
Negative Updates
GAAP Net Income Decline Due to Prior-Year Gain Absence
Net income from continuing operations was $242 million, a 21% decrease YoY driven by the absence of an $87 million gain from the prior-year REA sale of PropertyGuru. GAAP EPS from continuing operations was $0.34 versus $0.40 in the prior year (adjusted EPS improved).
HarperCollins One-time Inventory Charge and Margin Pressure
HarperCollins reported a $16 million one-time inventory-related write-off (primarily International), which reduced segment EBITDA to $99 million (down 2% YoY) and compressed margins (reported margin decline of ~140 bps; write-off impacted margins by ~260 bps).
News Media Revenue Flat and Advertising Weakness
News Media revenues were flat at $570 million while segment EBITDA declined 5% to $70 million, driven by weak print advertising trends and modest investment associated with the California Post launch.
Real Estate Market Headwinds and International Impacts
Australian national new buy listings declined ~3% in the quarter (January down 8% YoY), and REA India revenues fell primarily due to the sale of PropTiger and closure of Housing Edge. Management acknowledged housing market remains 'far from normal,' posing near-term headwinds despite strong operational performance at Realtor.com.
Advertising/ARPU Dynamics from Enterprise Mix
While enterprise partnership volume is a strategic positive, management noted those deals can modestly depress ARPU metrics (enterprise deals have lower ARPU vs direct subs) even as they deliver lower acquisition cost and high retention—creating a short-term ARPU/composition challenge.
Company Guidance
Management's forward-looking tone was upbeat and metric-driven: they said Q3/H2 prospects are "auspicious" with continued strong B2B revenue growth at Dow Jones, and reiterated 11 consecutive quarters of year‑over‑year total segment EBITDA growth; they expect overall FY CapEx to be up moderately (with Dow Jones CapEx modestly down) but still forecast "very strong" free cash‑flow growth for the year. They are accelerating buybacks (repurchased $172M in Q2, up $132M YoY and running ~4x last year's pace), expect repurchases to be meaningfully higher in H2 and to benefit from an approximately $380M Foxtel loan repayment. Key near‑term datapoints guiding posture include reported Q2 revenue of ~$2.4B (+6%) and total segment EBITDA of $521M (+9%, margin up ~70 bps to 22.1%), adjusted revenue +3% and adjusted segment EBITDA +7% YoY, Dow Jones revenue $648M (+8%) and segment EBITDA $191M (+10%, ~29.5–30% margin) with Risk & Compliance +20% to $96M and record digital advertising of $87M (+12%); Digital Real Estate revenue $511M (+8%) and EBITDA $206M (+11%) with Realtor.com revenue $143M (+10%), leads +13%, avg monthly uniques 62M and 29% portal visit share; HarperCollins expected to benefit in H2 from frontlist/backlist improvements despite a $16M one‑time inventory charge; and they signaled modest investments at News Media for the California Post while emphasizing continued margin discipline.News Class B Financial Statement Overview
Summary
Profitability has rebounded meaningfully with solid mid-teens net margins and improved ROE, while leverage is manageable (low-to-mid 0.3x debt-to-equity). Offsetting strengths, revenue has been uneven over the cycle and free cash flow has recently declined with only moderate cash conversion versus net income.Income Statement
TTM (Trailing-Twelve-Months) revenue is up strongly versus the prior annual period, and profitability is solid with net margin around the mid-teens and EBIT margin in the low-teens. The multi-year trend shows a meaningful rebound in net income and margins from weaker 2023–2024 levels, suggesting improved operating performance. Offsetting this, revenue has been uneven over the cycle (including a sharp drop in 2023), and margin consistency is not yet fully proven across multiple years.72
Positive
Balance Sheet
Leverage looks manageable with debt-to-equity in the low-to-mid 0.3x range in the most recent periods, improving from higher levels earlier in the series. Equity is sizable relative to total assets, and returns on equity have strengthened materially versus 2023–2024, aligning with the earnings recovery. The main watch-out is that total debt remains meaningful in absolute dollars, so sustained profitability is important to keep the balance sheet trajectory favorable.78
Positive
Cash Flow
The business generates steady operating cash flow and positive free cash flow across all periods shown, which supports financial flexibility. However, free cash flow is declining in TTM (Trailing-Twelve-Months) and the latest annual period, and cash conversion is only moderate with free cash flow running at roughly two-thirds of net income. Overall cash generation is healthy, but the recent direction in free cash flow is a near-term concern.62
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.62B | 8.45B | 8.25B | 8.01B | 10.38B | 9.36B |
| Gross Profit | 4.74B | 4.75B | 4.47B | 4.13B | 5.31B | 4.58B |
| EBITDA | 1.46B | 1.13B | 970.00M | 878.00M | 1.42B | 1.04B |
| Net Income | 439.00M | 464.00M | 266.00M | 149.00M | 623.00M | 330.00M |
Balance Sheet | ||||||
| Total Assets | 15.51B | 15.50B | 16.68B | 16.92B | 17.22B | 16.77B |
| Cash, Cash Equivalents and Short-Term Investments | 2.05B | 2.40B | 1.87B | 1.83B | 1.82B | 2.24B |
| Total Debt | 3.82B | 2.94B | 3.10B | 4.21B | 4.16B | 3.60B |
| Total Liabilities | 6.05B | 6.12B | 7.67B | 7.98B | 8.08B | 7.63B |
| Stockholders Equity | 8.79B | 8.77B | 8.12B | 8.06B | 8.22B | 8.21B |
Cash Flow | ||||||
| Free Cash Flow | 646.00M | 727.00M | 741.00M | 593.00M | 855.00M | 847.00M |
| Operating Cash Flow | 1.08B | 1.13B | 1.10B | 1.09B | 1.35B | 1.24B |
| Investing Cash Flow | -305.00M | -153.00M | -524.00M | -574.00M | -2.08B | -1.29B |
| Financing Cash Flow | -629.00M | -563.00M | -441.00M | -501.00M | 404.00M | 699.00M |
News Class B Technical Analysis
Neutral
29.32
Price Trends
28.19
Negative
28.85
Negative
30.84
Negative
Market Momentum
-0.15
Negative
51.65
Neutral
58.30
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NWS, the sentiment is Neutral. The current price of 29.32 is above the 20-day moving average (MA) of 26.69, above the 50-day MA of 28.19, and below the 200-day MA of 30.84, indicating a neutral trend. The MACD of -0.15 indicates Negative momentum. The RSI at 51.65 is Neutral, neither overbought nor oversold. The STOCH value of 58.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NWS.
News Class B Risk Analysis
News Class B disclosed 26 risk factors in its most recent earnings report. News Class B reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
News Class B Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $12.94B | 32.93 | 17.55% | 0.95% | 8.43% | 21.38% | |
67 Neutral | $7.21B | 56.54 | 4.92% | 3.66% | -1.42% | -8.99% | |
67 Neutral | $7.58B | 8.40 | 7.05% | 5.28% | -2.80% | ― | |
66 Neutral | $23.54B | 30.69 | 16.22% | 0.85% | 14.91% | 9.30% | |
63 Neutral | $14.08B | 21.79 | 12.52% | 0.67% | -16.36% | 29.53% | |
62 Neutral | $68.55B | 98.11 | 2.05% | ― | -4.29% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
NWS
News Class B
27.37
-3.67
-11.82%
NYT
New York Times
80.23
31.79
65.62%
NXST
Nexstar Media Group
237.82
65.05
37.65%
SIRI
Sirius XM Holdings
22.63
0.69
3.13%
FOX
Fox
52.71
4.14
8.52%
WBD
Warner Bros
27.64
16.72
153.11%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.