Education
About Us
Working with TipRanks
Follow Us
News Corp (NWSA)
NASDAQ:NWSA
Top Page
News Corp
(NASDAQ:NWSA)
Select Model
Select Model
Rating:67Neutral
Price Target:
$28.00
▲(7.28% Upside)
News Corp's overall stock score reflects strong earnings call performance and solid financial fundamentals. However, technical indicators suggest a bearish trend, and the stock's valuation appears high. The company's strategic initiatives, including share buybacks, signal confidence in future growth, but challenges in specific segments and macroeconomic uncertainties remain.
Positive Factors
Strong Digital Revenue Contributions
High digital revenue contributions indicate a successful transition to digital platforms, enhancing long-term growth potential and market relevance.
Cash Flow Generation
Improved cash flow generation supports financial flexibility, enabling reinvestment in growth initiatives and shareholder returns.
Share Buyback Program
The aggressive buyback program reflects management's confidence in the company's future and enhances shareholder value through capital return.
Negative Factors
Revenue Growth Challenges
Declining revenue growth indicates potential difficulties in expanding market share and sustaining long-term business momentum.
Weak Performance in Book Publishing
Challenges in Book Publishing can impact overall profitability and highlight vulnerabilities in diversifying revenue streams.
Macroeconomic Uncertainty
Macroeconomic uncertainties pose risks to revenue stability and strategic planning, potentially affecting long-term growth prospects.
News Corp (NWSA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$15.22B
Dividend Yield0.77%
Average Volume (3M)3.80M
Price to Earnings (P/E)32.3
Beta (1Y)0.82
Revenue Growth-16.36%
EPS Growth29.53%
CountryUS
Employees23,900
SectorCommunication Services
Sector Strength97
IndustryEntertainment
Share Statistics
EPS (TTM)0.22
Shares Outstanding374,479,740
10 Day Avg. Volume2,535,487
30 Day Avg. Volume3,799,852
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 Cap1.23
Enterprise Value/Revenue2.21
Enterprise Value/Gross Profit2.21
Enterprise Value/Ebitda12.55
Forecast
1Y Price Target
$40.33Price Target Upside54.52% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)1.02
Revenue Forecast (FY)$8.72B
News Corp Business Overview & Revenue Model
Company DescriptionNews Corp (NWSA) is a global media and information services company that operates across various sectors including news, digital media, book publishing, and cable television. The company is known for its extensive portfolio of brands, which includes The Wall Street Journal, New York Post, and HarperCollins Publishers, among others. News Corp is focused on delivering quality journalism and informative content through its traditional print media, digital platforms, and multimedia services, catering to a diverse audience worldwide.
How the Company Makes MoneyNews Corp generates revenue through several key streams, primarily from advertising, subscription services, and the sale of books and other media content. Advertising revenue is derived from both print and digital platforms, with significant contributions from its newspapers and online properties. Subscription services, particularly from its digital news outlets, provide a steady income through monthly or annual fees paid by consumers for access to premium content. Additionally, the company's book publishing division, HarperCollins, contributes significantly to revenue through the sale of physical and digital books. Partnerships with other media companies and technology platforms also enhance its distribution capabilities and advertising reach, further bolstering its earnings.
News Corp Key Performance Indicators (KPIs)
News Corp Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q1-2026)
| % Change Since: |
Next Earnings Date:Feb 11, 2026
Earnings Call Sentiment Positive
The call reflected a generally positive outlook with strong revenue and profitability growth, especially in digital and real estate sectors. However, challenges in Book Publishing and macroeconomic uncertainties presented notable concerns.Q1-2026 Updates
Positive Updates
Increased Revenue and Profitability
News Corp's revenue rose 2% to $2.14 billion, and total segment EBITDA increased by 5% to $340 million.
Strong Performance in Dow Jones and Digital Real Estate
Dow Jones EBITDA rose 10% with a 6% revenue increase. Digital Real Estate Services saw a 9% revenue boost, and the margin rose from 30.6% to 33%.
Successful Cost Management in News Media
EBITDA for News Media grew 67%, with a margin increase from 3.3% to 5.5%.
Record Digital Revenue Contributions
Digital accounted for 68% of advertising revenues and 84% of Dow Jones segment revenue.
Accelerated Share Buyback Program
The share buyback program accelerated to $2.5 million per day, over 4 times the previous pace.
Negative Updates
Weak Performance in Book Publishing
Book Publishing faced a $13 million write-off due to a distributor closure, with segment EBITDA declining by 28%.
Challenges in the U.S. Real Estate Market
Despite signs of recovery, the U.S. real estate market remains hamstrung by high interest rates.
Continued Macroeconomic Uncertainty
The company faces ongoing macroeconomic uncertainty, affecting various segments, particularly Book Publishing.
Company Guidance
During News Corp's First Quarter Fiscal 2026 Earnings Call, several key metrics were highlighted, reflecting the company's positive financial trajectory. The company's revenue for the period rose by 2% compared to the previous year, reaching $2.14 billion, while total segment EBITDA increased by 5% to $340 million. Net income from continuing operations slightly increased from $149 million to $150 million, and adjusted EPS improved from $0.20 to $0.22. Dow Jones demonstrated strong performance with a 10% increase in EBITDA and a 6% rise in revenue, underpinned by a 16% surge in Risk & Compliance revenues. Digital Real Estate Services also showed promising growth, with revenues rising 5%, and a margin increase from 30.6% to 33%. Despite challenges in Book Publishing, where revenues declined by 2% partly due to a $13 million write-off, News Media saw a 1% revenue increase and a significant 67% growth in EBITDA, with digital advertising at the New York Post rising by 23%. The company emphasized its robust cash position, announcing a substantial acceleration in its share buyback program, repurchasing at a rate of approximately $2.5 million per day, quadrupling the previous pace.News Corp Financial Statement Overview
Summary
News Corp demonstrates strong profitability and operational efficiency, with a solid equity base and manageable leverage. However, challenges in revenue growth and room for improvement in cash flow relative to net income slightly temper the overall financial performance.Income Statement
News Corp's income statement shows a strong gross profit margin of 74.78% TTM, indicating efficient cost management. However, the net profit margin is moderate at 15.71% TTM, and the revenue growth rate has declined by 4.85% TTM, suggesting potential challenges in revenue generation. The EBIT and EBITDA margins are healthy at 9.54% and 14.74% TTM, respectively, reflecting solid operational efficiency.75
Positive
Balance Sheet
The balance sheet reveals a stable debt-to-equity ratio of 0.33 TTM, indicating a balanced approach to leveraging. The return on equity is robust at 15.78% TTM, showcasing effective use of equity to generate profits. The equity ratio stands at 56.72% TTM, highlighting a strong equity base relative to total assets, which enhances financial stability.70
Positive
Cash Flow
Cash flow analysis shows a positive free cash flow growth rate of 4.13% TTM, indicating improved cash generation. The operating cash flow to net income ratio is 0.98 TTM, suggesting efficient conversion of net income into cash. However, the free cash flow to net income ratio of 0.66 TTM indicates room for improvement in cash flow relative to net income.68
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 | 8.50B | 8.45B | 8.25B | 8.01B | 10.38B | 9.36B |
| EBITDA | 1.49B | 1.42B | 1.24B | 1.09B | 1.60B | 1.18B |
| 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 | 1.96B | 1.83B | 1.82B | 2.24B |
| Total Debt | 2.93B | 2.94B | 4.05B | 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 | 602.00M | 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 Corp Technical Analysis
Neutral
26.10
Price Trends
26.25
Negative
27.91
Negative
27.79
Negative
Market Momentum
-0.14
Negative
52.55
Neutral
72.81
Neutral
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 26.1 is above the 20-day moving average (MA) of 25.67, below the 50-day MA of 26.25, and below the 200-day MA of 27.79, indicating a neutral trend. The MACD of -0.14 indicates Negative momentum. The RSI at 52.55 is Neutral, neither overbought nor oversold. The STOCH value of 72.81 is Neutral, 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 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 Corp Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $10.63B | 31.89 | 17.63% | 0.99% | 8.43% | 21.38% | |
77 Outperform | $29.30B | 15.82 | 17.33% | 0.77% | 14.91% | 9.30% | |
69 Neutral | $6.00B | 12.20 | 22.38% | 3.53% | -1.42% | -8.99% | |
68 Neutral | $70.04B | 157.41 | 1.36% | ― | -4.29% | ― | |
67 Neutral | $15.22B | 32.32 | 5.59% | 0.77% | -16.36% | 29.53% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
53 Neutral | $1.05B | ― | -11.81% | 6.05% | -0.98% | 82.16% |
* Communication Services Sector Average
NWSA
News Corp
26.10
-2.67
-9.28%
NYT
New York Times
67.75
13.13
24.04%
NXST
Nexstar Media Group
210.67
52.34
33.06%
SBGI
Sinclair Broadcast
17.00
0.79
4.84%
FOXA
Fox
71.82
24.92
53.13%
WBD
Warner Bros
29.49
17.00
136.11%
News Corp Corporate Events
Stock BuybackBusiness Operations and Strategy
News Corp Extends Stock Repurchase Program by $1B
Positive
Sep 26, 2025
News Corporation has announced an extension of its stock repurchase program, authorizing an additional $1 billion for the buyback of its Class A and Class B common stock as of July 15, 2025. This initiative, aimed at enhancing shareholder value, reflects the company’s strategic focus on optimizing its capital structure, with the buyback being executed under the rules of the Australian Securities Exchange and involving no ASX-listed CDIs.
Stock Buyback
News Corp Extends Stock Repurchase Program
Positive
Sep 25, 2025
News Corporation announced an extension of its stock repurchase program, authorizing an additional $1 billion for the buyback of Class A and Class B common stock as of July 15, 2025. This initiative, initially established in 2021, aims to enhance shareholder value by repurchasing shares in the open market, subject to market conditions and stock price, without requiring security holder approval or imposing foreign participation restrictions.
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.