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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
News Class B (NWS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.24B
Dividend Yield0.67%
Average Volume (3M)938.61K
Price to Earnings (P/E)21.8
Beta (1Y)0.77
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 Cap1.02
Enterprise Value/Revenue1.69
Enterprise Value/Gross Profit3.07
Enterprise Value/Ebitda10.01
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 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
NWS 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 su...
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.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.
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).
Read all updates
Q2-2026 Updates
Positive
Negative
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.
Read all positive updates
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
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
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
Positive
29.32
Price Trends
27.60
Positive
28.58
Negative
30.59
Negative
Market Momentum
0.24
Negative
57.36
Neutral
57.54
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NWS, the sentiment is Positive. The current price of 29.32 is above the 20-day moving average (MA) of 27.52, above the 50-day MA of 27.60, and below the 200-day MA of 30.59, indicating a neutral trend. The MACD of 0.24 indicates Negative momentum. The RSI at 57.36 is Neutral, neither overbought nor oversold. The STOCH value of 57.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | $13.82B | 32.93 | 17.55% | 0.95% | 8.43% | 21.38% | |
67 Neutral | $7.96B | 8.40 | 7.05% | 5.28% | -2.80% | ― | |
64 Neutral | $23.64B | 30.69 | 16.22% | 0.85% | 14.91% | 9.30% | |
63 Neutral | $14.24B | 21.79 | 12.52% | 0.67% | -16.36% | 29.53% | |
62 Neutral | $67.75B | 98.11 | 2.05% | ― | -4.29% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
54 Neutral | $5.47B | 56.54 | 4.92% | 3.66% | -1.42% | -8.99% |
* Communication Services Sector Average
NWS
News Class B
28.11
0.88
3.25%
NYT
New York Times
85.69
40.36
89.03%
NXST
Nexstar Media Group
180.38
35.18
24.23%
SIRI
Sirius XM Holdings
23.79
4.43
22.89%
FOX
Fox
52.87
8.80
19.97%
WBD
Warner Bros
27.32
19.23
237.70%
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.