News Corp (NWSA)
NASDAQ:NWSA
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News Corp
(NASDAQ:NWSA)
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Rating:65Neutral
Price Target:
$28.00
▲(7.65% Upside)
Action:Reiterated
Date:05/22/26
The score reflects improving balance-sheet leverage and a constructive earnings-call outlook with strong segment momentum and free-cash-flow expectations, offset by mixed recent profitability/cash conversion in the financial statements and a demanding valuation (high P/E, low yield). Technical indicators are broadly neutral and do not materially change the view.
Positive Factors
High-margin Dow Jones subscriptions
Dow Jones is a large, recurring subscription and data business (digital ~84% of Dow Jones revenue) with sustained revenue and margin expansion. High ARPU, subscription stickiness and diversified B2B data products provide predictable cash flows and durable operating leverage over cycles.
Negative Factors
News Media profitability pressure
Legacy news operations remain margin-constrained as print declines persist and investment launches (e.g., California Post) weigh profitability. This structural drag requires sustained digital monetization or cost reductions to avoid longer-term earnings dilution across the group.
Read all positive and negative factors
Positive Factors
Negative Factors
High-margin Dow Jones subscriptions
Dow Jones is a large, recurring subscription and data business (digital ~84% of Dow Jones revenue) with sustained revenue and margin expansion. High ARPU, subscription stickiness and diversified B2B data products provide predictable cash flows and durable operating leverage over cycles.
Read all positive factors
News Corp Key Performance Indicators (KPIs)
Any
Revenue by Type
Breaks down revenue into different types, such as subscription, advertising, or product sales, highlighting which areas drive the most income and indicating potential growth or decline in specific revenue streams.
Breaks down revenue into different types, such as subscription, advertising, or product sales, highlighting which areas drive the most income and indicating potential growth or decline in specific revenue streams.
Data provided by:
The Fly
The FlyNews Corp (NWSA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.87B
Dividend Yield0.76%
Average Volume (3M)3.94M
Price to Earnings (P/E)39.2
Beta (1Y)0.75
Revenue Growth-6.39%
EPS Growth-12.34%
CountryUS
Employees23,900
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)1.88
Shares Outstanding364,894,930
10 Day Avg. Volume4,314,964
30 Day Avg. Volume3,937,907
Financial Highlights & Ratios
PEG Ratio0.04
Price to Book (P/B)1.92
Price to Sales (P/S)2.00
P/FCF Ratio23.21
Enterprise Value/Market Cap1.14
Enterprise Value/Revenue1.88
Enterprise Value/Gross Profit2.55
Enterprise Value/Ebitda10.45
Forecast
1Y Price Target
$34.10Price Target Upside31.10% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)1.05
Revenue Forecast (FY)$8.91B
News Corp 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 Corp primarily makes money through a mix of subscriptions, advertising, licensing, and transaction-related services across its operating segments. (1) Dow Jones: A major revenue driver is recurring subscription revenue from The Wall Street Jo...
News Corp 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 strong, broad-based operational momentum: double-digit profit growth, margin expansion, robust free cash flow, and accelerating buybacks. Dow Jones, Digital Real Estate Services and HarperCollins were standout performers, and strategic AI/IP partnerships offer upside. Headwinds are concentrated in News Media profitability (impact from California Post launch and print declines), housing-market cyclicality that could limit Real Estate upside in the near term, and some timing/adjustment effects on reported vs adjusted growth. On balance, the positives across high-margin digital businesses and cash deployment materially outweigh the highlighted challenges.Positive Updates
Company-wide Revenue and Profit Growth
Total revenue rose 9% year-over-year to $2.2 billion; total segment EBITDA increased 18% to $343 million; margins expanded from 14.4% to 15.7% (+130 bps). Net income from continuing operations rose 13%.
Negative Updates
News Media Profitability Decline
News Media revenue rose 5% to $538 million (currency-favorable) but segment EBITDA declined to $15 million, down $18 million year-over-year; adjusted revenues declined 2%. Decline driven partly by launch and investment costs for the California Post and tougher trading in Australia and the U.K.
Read all updates
Q3-2026 Updates
Positive
Negative
Company-wide Revenue and Profit Growth
Total revenue rose 9% year-over-year to $2.2 billion; total segment EBITDA increased 18% to $343 million; margins expanded from 14.4% to 15.7% (+130 bps). Net income from continuing operations rose 13%.
Read all positive updates
Company Guidance
The company said it expects to report strong fourth-quarter results and continued strong free cash flow for the fiscal year despite moderately higher capital expenditures, reiterating segment-level guidance: Dow Jones should deliver continued revenue growth and improved margins as it pursues a $1 billion annual segment EBITDA target within five years; Digital Real Estate Services now assumes lower operating cost growth and noted Australian residential new‑buy listings in April rose 19%, REA revenue growth was 20% (8% constant currency) with a 14% yield increase, realtor.com revenue rose 10% to $148M with visit share at 31% and lead volume up 6% (trailing‑12 month revenue per existing‑home‑sale >20% vs Q3 2022), and HarperCollins expects a stronger front‑list program; News Media expects incremental California Post costs offset in part by content licensing; management also flagged higher Q4 net adds at Dow Jones (digital‑only subs +9% in Q3; ~53k sequential net adds) and anticipated proceeds from the $1.5B Anthropic settlement beginning later this calendar year.News Corp Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
73
Positive
Cash Flow
61
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 9.03B | 8.45B | 8.25B | 8.01B | 10.38B | 9.36B |
| Gross Profit | 6.67B | 8.45B | 8.25B | 8.01B | 10.38B | 9.36B |
| EBITDA | 1.63B | 1.42B | 1.24B | 1.09B | 1.60B | 1.18B |
| Net Income | 1.06B | 1.18B | 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 | 1.96B | 1.83B | 1.82B | 2.24B |
| Total Debt | 2.84B | 2.94B | 4.05B | 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 | 566.00M | 727.00M | 602.00M | 593.00M | 855.00M | 847.00M |
| Operating Cash Flow | 1.00B | 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 Corp Technical Analysis
Neutral
26.01
Price Trends
25.43
Positive
25.16
Positive
26.29
Negative
Market Momentum
0.15
Positive
48.42
Neutral
19.83
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NWSA, the sentiment is Neutral. The current price of 26.01 is below the 20-day moving average (MA) of 26.28, above the 50-day MA of 25.43, and below the 200-day MA of 26.29, indicating a neutral trend. The MACD of 0.15 indicates Positive momentum. The RSI at 48.42 is Neutral, neither overbought nor oversold. The STOCH value of 19.83 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for NWSA.
News Corp Risk Analysis
News Corp disclosed 26 risk factors in its most recent earnings report. News Corp 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 Corp Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $12.13B | 38.58 | 19.22% | 0.95% | 10.41% | 27.40% | |
73 Outperform | $25.70B | 37.29 | 14.86% | 0.75% | 0.60% | -5.58% | |
65 Neutral | $14.87B | 39.20 | 4.88% | 0.76% | -6.39% | -12.34% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
57 Neutral | $5.76B | 8.37 | 7.52% | 3.66% | -4.57% | -76.64% | |
57 Neutral | $1.00B | 11.41 | 15.82% | 6.52% | -9.25% | -54.61% | |
55 Neutral | $67.77B | ― | -6.13% | ― | -2.78% | 84.26% |
* Communication Services Sector Average
NWSA
News Corp
25.89
-1.80
-6.50%
NYT
New York Times
74.96
20.20
36.89%
NXST
Nexstar Media Group
188.67
23.20
14.02%
SBGI
Sinclair Broadcast
13.86
0.65
4.96%
FOXA
Fox
63.98
9.46
17.35%
WBD
Warner Bros
27.03
17.48
183.04%
News Corp Corporate Events
Business Operations and StrategyStock Buyback
News Corp Launches Nasdaq-Focused Share Repurchase Program
Positive
May 22, 2026
News Corp has notified the ASX that, under its existing US$1 billion stock repurchase authorization covering Class A and Class B common shares, it is conducting an “other buy-back” of its Nasdaq-listed stock, with no ASX-listed CDIs to...
Stock BuybackRegulatory Filings and Compliance
News Corp Announces US$1 Billion Share Buyback Program
Positive
May 21, 2026
News Corporation has disclosed to the Australian Securities Exchange that, under an existing authorization, it may repurchase up to an aggregate of US$1 billion of its Nasdaq‑listed Class A and Class B common stock through a repurchase progr...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
News Corp launches $1 billion Nasdaq share buyback
Positive
May 20, 2026
News Corp has disclosed to the Australian Securities Exchange that it is conducting a buy-back of its Nasdaq-listed Class A common stock and Class B common stock under a repurchase program authorized on July 15, 2025, with capacity of up to US$1 b...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
News Corp Highlights Flexible Ongoing Share Repurchase Program
Neutral
May 19, 2026
News Corporation has an existing stock repurchase program authorizing buybacks of up to $1 billion of its Class A and Class B common shares, and is required under Australian Securities Exchange rules to provide daily disclosure of any related tran...
Stock BuybackRegulatory Filings and Compliance
News Corp Updates Progress on Ongoing Share Buyback
Positive
May 18, 2026
News Corporation has updated the Australian Securities Exchange on its ongoing share repurchase activity under a buy-back program authorized on July 15, 2025, allowing the company to repurchase up to US$1 billion of its Nasdaq-listed Class A and C...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
News Corp launches daily Nasdaq Class A share buyback
Positive
May 15, 2026
News Corporation has notified the Australian Securities Exchange that it is conducting a daily buy-back under its previously authorised stock repurchase program, which allows the company to acquire up to $1 billion of its Class A and Class B commo...
Stock BuybackRegulatory Filings and Compliance
News Corp Launches Nasdaq-Focused Share Buyback Program
Positive
May 14, 2026
News Corp has disclosed to the Australian Securities Exchange that it is executing a stock buy‑back under its existing repurchase program, which authorizes the company to acquire up to US$1 billion of its outstanding Class A and Class B comm...
Business Operations and StrategyStock Buyback
News Corp Announces US$1 Billion Share Repurchase Plan
Positive
Apr 10, 2026
News Corp has notified the ASX that, under its existing stock repurchase authorization, it may buy back up to an aggregate of US$1 billion of its Nasdaq‑listed Class A and Class B common shares. The company disclosed that no ASX‑listed...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
News Corp launches daily share buyback under 2025 program
Positive
Apr 9, 2026
News Corp has disclosed to the Australian Securities Exchange that it is conducting a daily-reported buy-back of its Nasdaq-listed Class A common stock under a broader US$1 billion repurchase authorization covering both Class A and Class B shares....
Stock Buyback
News Corp Announces US$1 Billion Share Repurchase Authorization
Positive
Apr 8, 2026
News Corp has disclosed to the ASX that, under its existing stock repurchase program, it is authorized to buy back up to US$1 billion of its Nasdaq-listed Class A and Class B shares, with a total of 366,050,844 Class A securities currently on issu...
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.