News Corporation Class B (NWS)
NASDAQ:NWS
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News Class B
(NASDAQ:NWS)
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Rating:69Neutral
Price Target:
$34.00
▲(15.96% Upside)
Action:Downgraded
Date:05/09/26
The score is driven mainly by a positive earnings outlook (revenue/EBITDA growth, margin expansion, buybacks and expected settlement proceeds) and constructive technical momentum (price above key moving averages with positive MACD). These positives are tempered by only mid-level underlying financial statement quality (declining/uneven free cash flow and some TTM margin deterioration) and a valuation that offers limited support (P/E 23.47 with a low ~0.64% yield).
Positive Factors
Dow Jones strength
Dow Jones is a high-margin, subscription-led information business with strong growth in Risk & Compliance and digital mix at 84%. Its recurring, enterprise-focused revenues and 23.7% segment margin underpin durable cash flows, discipline vs ad cyclicality and long-term profitability.
Negative Factors
News Media profitability pressure
Core news publishing faces structural margin pressure from print declines and investment in new products. Start-up and content-distribution costs can persist, compressing segment profitability and reducing the ability to fund digital transformation purely from operating cash in the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Dow Jones strength
Dow Jones is a high-margin, subscription-led information business with strong growth in Risk & Compliance and digital mix at 84%. Its recurring, enterprise-focused revenues and 23.7% segment margin underpin durable cash flows, discipline vs ad cyclicality and long-term profitability.
Read all positive factors
News Class B Key Performance Indicators (KPIs)
News Class B (NWS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$15.22B
Dividend Yield0.67%
Average Volume (3M)1.23M
Price to Earnings (P/E)39.3
Beta (1Y)0.77
Revenue Growth-6.39%
EPS Growth-12.34%
CountryUS
Employees23,900
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)0.75
Shares Outstanding182,551,830
10 Day Avg. Volume1,190,622
30 Day Avg. Volume1,228,921
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 Cap1.14
Enterprise Value/Revenue1.97
Enterprise Value/Gross Profit3.66
Enterprise Value/Ebitda11.55
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)1.05
Revenue Forecast (FY)$8.91B
News Class B Business Overview & Revenue Model
Company Description
News 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 Servic...
How the Company Makes Money
News Corporation generates revenue primarily through (1) subscriptions, (2) advertising, and (3) licensing and data/information services. Subscriptions include print and digital subscriptions to news publications (notably The Wall Street Journal a...
News Class B Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call conveyed a broadly positive tone: multiple core businesses reported double-digit profit growth, margins expanded, and management highlighted strategic wins in AI partnerships and strong buyback activity. Key strengths include Dow Jones, Digital Real Estate Services and HarperCollins driving profitability and digital revenue mix gains. Headwinds exist in News Media profitability (launch and print pressures), housing-market sensitivity, IP-scraping litigation risks and short-term working-capital timing effects, but management expects these to be manageable and anticipates a strong fourth quarter.Positive Updates
Top-line and EBITDA Growth
Total revenue rose 9% year-over-year to $2.2 billion and total segment EBITDA increased 18% to $343 million, demonstrating strong topline and operating-profit expansion for the quarter.
Negative Updates
News Media Profit Decline and Launch Costs
News Media revenue rose 5% to $538 million, but segment EBITDA fell by $18 million to $15 million year-over-year, driven in part by investment and startup costs for the California Post and weaker contributions from News U.K.
Read all updates
Q3-2026 Updates
Positive
Negative
Top-line and EBITDA Growth
Total revenue rose 9% year-over-year to $2.2 billion and total segment EBITDA increased 18% to $343 million, demonstrating strong topline and operating-profit expansion for the quarter.
Read all positive updates
Company Guidance
Management guided to a strong Q4 and continued margin and revenue momentum across its core pillars: overall Q3 results that underpin the outlook included revenue of ~$2.2B (+9% YoY), total segment EBITDA $343M (+18%), margin expansion of 130 bps to 15.7%, adjusted EPS $0.21 (vs $0.17) and the 12th consecutive quarter of YoY total segment EBITDA growth; Dow Jones is expected to continue strong revenue and margin improvement with a stated path to $1.0B of annual segment EBITDA within five years (Q3: rev $619M, EBITDA $147M, margin 23.7%, digital 84% of revenue; Risk & Compliance +19%, Energy +12%, digital‑only subs +9% with ~53k sequential net adds); Digital Real Estate Services anticipates further recovery and lower operating cost growth (Q3: segment rev $473M, +17% reported/8% adjusted; EBITDA $155M, +25% reported/16% adjusted; margin widened to 32.8%; REA rev +20%, realtor.com rev +10%, realtor.com visit share 31%, trailing‑12m revenue-to-existing-home-sales >20% vs Q3 2022; realtor.com avg visits/user 5.3 vs Zillow 3.5); HarperCollins expects frontlist tailwinds (Q3: rev $555M +8%, EBITDA $73M +14%, margin 13.2%, digital +11%, e‑books +17%, audiobooks +7%); News Media will absorb incremental California Post launch costs but gain content licensing revenue (Q3: rev $538M +5%, EBITDA $15M, down $18M). At the corporate level they expect strong fiscal‑year free cash flow despite moderately higher capex, anticipate proceeds from the $1.5B Anthropic settlement later this calendar year, and are continuing accelerated buybacks ($193M repurchased in Q3; $459M FYTD).News Class B Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
74
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.80B | 8.45B | 8.25B | 8.01B | 10.38B | 9.36B |
| Gross Profit | 4.75B | 4.75B | 4.47B | 4.13B | 5.31B | 4.58B |
| EBITDA | 1.50B | 1.13B | 970.00M | 878.00M | 1.42B | 1.04B |
| Net Income | 425.00M | 464.00M | 266.00M | 149.00M | 623.00M | 330.00M |
Balance Sheet | ||||||
| Total Assets | 15.52B | 15.50B | 16.68B | 16.92B | 17.22B | 16.77B |
| Cash, Cash Equivalents and Short-Term Investments | 2.17B | 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 | 6.24B | 6.12B | 7.67B | 7.98B | 8.08B | 7.63B |
| Stockholders Equity | 8.58B | 8.77B | 8.12B | 8.06B | 8.22B | 8.21B |
Cash Flow | ||||||
| Free Cash Flow | 560.00M | 727.00M | 741.00M | 593.00M | 855.00M | 847.00M |
| Operating Cash Flow | 997.00M | 1.13B | 1.10B | 1.09B | 1.35B | 1.24B |
| Investing Cash Flow | -273.00M | -153.00M | -524.00M | -574.00M | -2.08B | -1.29B |
| Financing Cash Flow | -775.00M | -563.00M | -441.00M | -501.00M | 404.00M | 699.00M |
News Class B Technical Analysis
Negative
29.32
Price Trends
29.42
Positive
28.78
Positive
29.89
Negative
Market Momentum
0.12
Positive
48.46
Neutral
54.04
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NWS, the sentiment is Negative. The current price of 29.32 is below the 20-day moving average (MA) of 30.22, below the 50-day MA of 29.42, and below the 200-day MA of 29.89, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 48.46 is Neutral, neither overbought nor oversold. The STOCH value of 54.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $26.20B | 14.22 | 14.86% | 0.85% | 0.60% | -5.58% | |
73 Outperform | $10.05B | 11.72 | 7.33% | 3.74% | -0.28% | ― | |
73 Outperform | $12.14B | 31.87 | 19.22% | 0.95% | 10.41% | 27.40% | |
69 Neutral | $15.22B | 39.28 | 4.88% | 0.67% | -6.39% | -12.34% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
57 Neutral | $5.68B | 32.84 | 7.52% | 3.66% | -4.57% | -76.64% | |
55 Neutral | $67.79B | -38.77 | -4.94% | ― | -2.78% | 84.26% |
* Communication Services Sector Average
NWS
News Class B
29.82
-2.68
-8.24%
NYT
New York Times
75.21
18.76
33.23%
NXST
Nexstar Media Group
178.43
14.01
8.52%
SIRI
Sirius XM Holdings
29.52
8.86
42.85%
FOX
Fox
57.39
7.63
15.34%
WBD
Warner Bros
27.01
17.04
170.91%
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.