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News Corporation Class B (NWS)
:NWS
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News Class B
(NASDAQ:NWS)
Select Model
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Rating:70Outperform
Price Target:
$33.00
▲(12.55% Upside)
News Class B's overall stock score is driven by strong financial performance and positive earnings call sentiment, highlighting robust profitability and strategic initiatives like share buybacks. However, the high P/E ratio and bearish technical indicators suggest caution, as the stock may be overvalued and lacking upward momentum.
Positive Factors
Record Profitability
Record profitability indicates strong operational efficiency and strategic execution, enhancing the company's ability to invest in growth and return capital to shareholders.
Digital Real Estate Growth
Growth in digital real estate reflects robust demand and effective market positioning, contributing to diversified revenue streams and long-term financial stability.
Successful Stock Repurchase Program
The stock repurchase program demonstrates strong cash flow and a commitment to enhancing shareholder value, indicating confidence in future performance.
Negative Factors
Revenue Decline
A decline in revenue can signal challenges in market demand or competitive pressures, potentially impacting long-term growth and market share.
Cash Flow Challenges
Declining free cash flow growth may limit the company's ability to fund new investments, manage debt, and maintain operational flexibility.
CapEx Increase
Increased capital expenditures can strain financial resources and may not immediately translate into revenue growth, affecting short-term profitability.
News Class B (NWS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$15.30B
Dividend Yield0.67%
Average Volume (3M)813.22K
Price to Earnings (P/E)36.8
Beta (1Y)0.85
Revenue Growth-16.36%
EPS Growth29.53%
CountryUS
Employees23,900
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)0.22
Shares Outstanding187,029,480
10 Day Avg. Volume763,271
30 Day Avg. Volume813,224
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)2.22
Price to Sales (P/S)2.30
P/FCF Ratio26.79
Enterprise Value/Market Cap1.37
Enterprise Value/Revenue2.46
Enterprise Value/Gross Profit4.35
Enterprise Value/Ebitda15.61
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.02
Revenue Forecast (FY)$8.72B
News Class B Business Overview & Revenue Model
Company DescriptionNews Class B (NWS) is a global media and entertainment company, primarily involved in the production and distribution of news, sports, and entertainment content across various platforms. The company operates in multiple sectors, including television broadcasting, digital media, and publishing, and is known for its extensive portfolio of well-recognized news brands and entertainment networks. NWS delivers content through cable, satellite, and streaming services, catering to a diverse audience worldwide.
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:Nov 06, 2025
(Q1-2026)
| % Change Since: |
Next Earnings Date:Feb 11, 2026
Earnings Call Sentiment Positive
The earnings call reflects a generally positive sentiment with strong performances in several key segments like Dow Jones and Digital Real Estate Services, along with an accelerated share buyback program. However, challenges in the Book Publishing segment and the Australian property market were notable. Despite these lowlights, the highlights significantly outweigh the challenges, indicating a positive outlook for News Corp.Q1-2026 Updates
Positive Updates
Revenue and Profitability Increase
News Corp's revenue rose 2% to $2.14 billion, and total segment EBITDA increased by 5% to $340 million. Net income from continuing operations was $150 million, up from $149 million last year, and adjusted EPS rose from $0.20 to $0.22 in the quarter.
Strong Performance in Dow Jones
Dow Jones EBITDA rose 10% compared to a year earlier, with a solid 6% increase in revenue. Risk & Compliance revenues surged 16%, and digital accounted for 68% of advertising revenues, a new record.
Growth in Digital Real Estate Services
Digital Real Estate Services saw a 9% revenue boost year-on-year, with a margin increase from 30.6% to 33%. REA Group revenue rose 3% or 5% in constant currency, and yield grew by double digits.
Expanded Share Buyback Program
News Corp accelerated its share buyback program, repurchasing at a rate of $2.5 million per day, over 4x the previous pace, reflecting confidence in growth potential and belief in stock undervaluation.
Positive Trends in Book Publishing
Despite a challenging quarter, recent releases like R. F. Kuang's Katabasis became a bestseller, and Bible sales revenue rose more than 65% in September compared to the prior year.
News Media EBITDA Growth
News Media revenues rose 1%, while EBITDA grew 67%, driven by a 19% year-over-year increase in advertising revenue at the New York Post, with 90% of that advertising being digital.
Negative Updates
Weak Performance in Book Publishing
Book Publishing faced challenges with orders slowing and a $13 million write-off due to the expected closure of a book distributor, leading to a 28% decline in segment EBITDA.
Softer U.S. Market Conditions
The Book Publishing segment was impacted by softer U.S. market conditions and a 9% decline in digital revenues at HarperCollins, with audio books down 11%.
Challenges in Australian Property Market
In Digital Real Estate, the Australian property market saw softer listing volumes, with new buy listings in the quarter declining 8% due to tough prior year comparisons.
Company Guidance
During News Corp's First Quarter Fiscal 2026 Earnings Conference Call, the company reported a 2% increase in revenue to $2.14 billion and a 5% rise in total segment EBITDA to $340 million, compared to the prior year. Net income from continuing operations was $150 million, slightly up from $149 million last year, while adjusted EPS increased from $0.20 to $0.22. Dow Jones saw a 10% rise in EBITDA and a 6% increase in revenue, with digital circulation revenues now comprising 75% of total circulation revenues. Digital Real Estate Services experienced a 9% revenue boost, and the segment's margin rose from 30.6% to 33%. Although Book Publishing faced challenges with a write-off of $13 million due to the expected closure of a distributor, the overall outlook for the segment improved with strong recent sales. News Media's revenue grew by 1%, and EBITDA surged 67%, driven by digital advertising gains at the New York Post. The company also highlighted its robust cash position and accelerated share buyback program, repurchasing shares at a rate over four times the previous pace.News Class B Financial Statement Overview
Summary
News Class B exhibits strong financial performance with consistent revenue growth, robust profitability margins, and a solid balance sheet. The company effectively manages its leverage and generates healthy cash flows, positioning it well for future growth. However, attention should be given to stabilizing revenue growth and maintaining cash flow momentum to ensure long-term financial health.Income Statement
News Class B has demonstrated strong revenue growth with a TTM increase of 5.68% compared to the previous year. The company maintains a healthy gross profit margin of 56.5% and a net profit margin of 13.8%, indicating efficient cost management and profitability. The EBIT and EBITDA margins are also robust at 12.18% and 17.64%, respectively, showcasing operational efficiency. However, the revenue growth rate has fluctuated in the past, which could pose a risk if not stabilized.85
Very Positive
Balance Sheet
The balance sheet reflects a solid financial position with a debt-to-equity ratio of 0.34, indicating a conservative approach to leverage. The return on equity (ROE) stands at 13.87%, showcasing effective use of equity to generate profits. The equity ratio is 56.7%, highlighting a strong equity base relative to total assets. However, the company should monitor its debt levels to maintain financial flexibility.78
Positive
Cash Flow
Cash flow analysis reveals a positive trajectory with a free cash flow growth rate of 4.13% in the TTM period. The operating cash flow to net income ratio is 0.98, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 65.83%, reflecting efficient cash conversion. Despite these strengths, the company should continue to focus on sustaining cash flow growth to support future investments.80
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.50B | 8.45B | 8.25B | 8.01B | 10.38B | 9.36B |
| Gross Profit | 4.81B | 4.75B | 4.47B | 4.13B | 5.31B | 4.58B |
| EBITDA | 1.34B | 1.13B | 970.00M | 878.00M | 1.42B | 1.04B |
| Net Income | 1.17B | 1.18B | 266.00M | 149.00M | 623.00M | 330.00M |
Balance Sheet | ||||||
| Total Assets | 15.34B | 15.50B | 16.68B | 16.92B | 17.22B | 16.77B |
| Cash, Cash Equivalents and Short-Term Investments | 2.20B | 2.40B | 1.87B | 1.83B | 1.82B | 2.24B |
| Total Debt | 2.93B | 2.94B | 3.10B | 4.21B | 4.16B | 3.60B |
| Total Liabilities | 6.03B | 6.12B | 7.67B | 7.98B | 8.08B | 7.63B |
| Stockholders Equity | 8.70B | 8.77B | 8.12B | 8.06B | 8.22B | 8.21B |
Cash Flow | ||||||
| Free Cash Flow | 757.00M | 727.00M | 741.00M | 593.00M | 855.00M | 847.00M |
| Operating Cash Flow | 1.15B | 1.13B | 1.10B | 1.09B | 1.35B | 1.24B |
| Investing Cash Flow | -118.00M | -153.00M | -524.00M | -574.00M | -2.08B | -1.29B |
| Financing Cash Flow | -595.00M | -563.00M | -441.00M | -501.00M | 404.00M | 699.00M |
News Class B Technical Analysis
Neutral
29.32
Price Trends
29.73
Negative
31.61
Negative
31.72
Negative
Market Momentum
-0.10
Negative
52.39
Neutral
66.72
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 29.12, below the 50-day MA of 29.73, and below the 200-day MA of 31.72, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 52.39 is Neutral, neither overbought nor oversold. The STOCH value of 66.72 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 3 New Risks
1.
Developments in AI, Including the Company's Use of AI, May Expose it to Certain Risks, Which Could Adversely Affect its Business, Reputation or Financial Results. Q2, 2025
2.
An Inability to Attract and Retain the Right Talent and Cultivate Their Performance Could Adversely Affect the Company's Business. Q2, 2025
3.
The Company is Exposed to Fluctuations in Foreign Currency Exchange Rates. Q2, 2025
News Class B Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $11.00B | 33.01 | 17.63% | 0.99% | 8.43% | 21.38% | |
76 Outperform | $29.89B | 14.28 | 17.33% | 0.87% | 14.91% | 9.30% | |
70 Outperform | $15.30B | 36.81 | 5.59% | 0.67% | -16.36% | 29.53% | |
69 Neutral | $6.23B | 12.65 | 22.38% | 3.65% | -1.42% | -8.99% | |
68 Neutral | $73.19B | 157.20 | 1.36% | ― | -4.29% | ― | |
64 Neutral | $7.51B | 8.05 | 8.86% | 4.97% | -2.80% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
NWS
News Class B
29.66
-1.57
-5.03%
NYT
New York Times
67.97
13.59
24.99%
NXST
Nexstar Media Group
203.67
45.72
28.95%
SIRI
Sirius XM Holdings
21.75
-1.23
-5.35%
FOX
Fox
63.08
18.81
42.49%
WBD
Warner Bros
29.98
17.91
148.38%
News Class B Corporate Events
News Corporation Reports Modest Revenue Growth in Q1 2026
Nov 7, 2025
News Corporation, a global media and information services company, operates across various sectors including news, digital real estate, and book publishing, with significant operations in the United States, Australia, and the United Kingdom.
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.