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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:
$29.00
▼(-1.09% Downside)
Action:DowngradedDate:02/06/26
The score is supported by improving fundamentals (stronger profitability/returns and manageable leverage) and a generally constructive earnings call with segment strength and an accelerated buyback. It is held back primarily by weak technicals (below major moving averages with negative MACD) and only fair valuation support given the high P/E and modest dividend yield.
Positive Factors
Dow Jones segment strength
Dow Jones is delivering durable, high-margin growth driven by proprietary information products and rising digital revenues. Recurring subscription and licensing cash flows, plus strong Risk & Compliance growth, deepen a competitive moat and support sustained margins and predictable EBITDA generation over the medium term.
Manageable leverage & improving ROE
A low-to-mid 0.3x debt-to-equity ratio and material equity provide financial flexibility, lowering refinancing risk and enabling capital allocation choices. Improved returns on equity vs. 2023–2024 indicate operating recovery that supports balance sheet resilience and the ability to fund growth or buybacks without excessive leverage.
Positive cash generation & buybacks
Consistent operating cash flow and an active, accelerated repurchase program signal strong cash-generation capacity and disciplined capital allocation. When sustained, buybacks enhance per-share economics and reflect management confidence in core cash flows, supporting shareholder returns over the coming months.
Negative Factors
Uneven revenue trends
Top-line volatility and a prior sharp revenue drop undermine predictability for margins and investment planning. Even with recent segment gains, uneven revenue trends increase execution risk: sustained margin recovery requires ongoing strength across multiple businesses rather than isolated segment performance.
Declining free cash flow conversion
Weakening free cash flow and only moderate cash conversion reduce cushion for debt reduction, reinvestment, or sustaining elevated buyback levels. If FCF erosion continues, financial flexibility and ability to fund strategic initiatives or absorb shocks will be constrained, raising medium-term downside risk.
Book publishing & market exposure risks
Material write-offs and declining book segment profitability highlight exposure to distribution disruptions and softer consumer demand. Combined with regional softness (eg Australian listings), these cyclical and structural headwinds can pressure consolidated growth and margins unless offset by continued strength in higher-margin digital units.
News Class B (NWS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.95B
Dividend Yield0.67%
Average Volume (3M)938.61K
Price to Earnings (P/E)34.8
Beta (1Y)0.83
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 Cap1.04
Enterprise Value/Revenue1.68
Enterprise Value/Gross Profit3.06
Enterprise Value/Ebitda9.97
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.05
Revenue Forecast (FY)$8.80B
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:Nov 06, 2025
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 07, 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
Profitability and returns have rebounded meaningfully versus 2023–2024 with manageable leverage, but revenue has been uneven and free cash flow is weakening in the most recent periods with only moderate cash conversion.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
28.95
Negative
29.31
Negative
31.28
Negative
Market Momentum
-0.82
Negative
43.33
Neutral
72.12
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 27.05, above the 50-day MA of 28.95, and below the 200-day MA of 31.28, indicating a bearish trend. The MACD of -0.82 indicates Negative momentum. The RSI at 43.33 is Neutral, neither overbought nor oversold. The STOCH value of 72.12 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 | $12.95B | 38.26 | 17.34% | 0.95% | 8.43% | 21.38% | |
73 Outperform | $22.93B | 12.45 | 16.87% | 0.85% | 14.91% | 9.30% | |
67 Neutral | $7.61B | 83.78 | ― | 3.66% | -1.42% | -8.99% | |
67 Neutral | $7.35B | 9.74 | 7.11% | 5.28% | -2.80% | ― | |
63 Neutral | $13.95B | 34.81 | 5.59% | 0.67% | -16.36% | 29.53% | |
62 Neutral | $69.86B | 98.15 | 2.08% | ― | -4.29% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
NWS
News Class B
26.78
-5.06
-15.88%
NYT
New York Times
79.79
33.31
71.68%
NXST
Nexstar Media Group
251.02
84.34
50.60%
SIRI
Sirius XM Holdings
21.96
-0.90
-3.92%
FOX
Fox
51.73
-1.18
-2.23%
WBD
Warner Bros
28.17
17.15
155.63%
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.