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Dec 31, 2025
News Corp Q2 2026 Earnings Report
News Corp reported a 6% increase in total revenues, reaching $2.36 billion, driven by growth in Dow Jones, Digital Real Estate Services, and Book Publishing segments, with net income from continuing operations decreasing by 21% to $242 million.
Key Takeaways
News Corp delivered a strong second quarter for fiscal year 2026, with total revenues increasing by 6% to $2.36 billion, primarily fueled by robust performance in Dow Jones, Digital Real Estate Services, and Book Publishing. Despite this revenue growth, net income from continuing operations decreased by 21% to $242 million, largely due to the absence of a significant gain from the prior year. Adjusted EPS saw a positive increase to $0.40, up from $0.33 in the prior year, indicating underlying operational strength.
Total revenues for the second quarter increased by 6% to $2.36 billion, compared to $2.24 billion in the prior year, driven by growth across key segments.
Net income from continuing operations decreased by 21% to $242 million, primarily due to the absence of an $87 million gain on REA Group's sale of PropertyGuru in the prior year.
Total Segment EBITDA rose by 9% to $521 million, with strong contributions from Digital Real Estate Services and Dow Jones, despite a $16 million inventory write-off in Book Publishing.
Adjusted EPS for the quarter was $0.40, an increase from $0.33 in the prior year, reflecting improved operational performance excluding one-time items.
Revenue by Segment
Forward Guidance
News Corp anticipates continued strong performance in the second half of the fiscal year, with favorable signs for the third quarter, driven by sustained growth in Dow Jones and Digital Real Estate Services.
Positive Outlook
- Expectations of AI's impact are evolving, with a growing realization that provenance is paramount, leading to a premium for quality content.
- Expanded partnership with Bloomberg to include AI rights for unique Dow Jones content, with other negotiations progressing.
- Continued active execution of the expanded buyback program, running at over four times the prior rate, reflecting confidence in the Company's cash position and intrinsic value.
- Dow Jones achieved record digital advertising revenues and record Segment EBITDA margins at nearly 30%, indicating strong operational efficiency.
- Digital Real Estate Services and Dow Jones segments achieved double-digit profit growth and started the calendar year strongly.
Challenges Ahead
- Net income from continuing operations decreased by 21% due to the absence of a prior-year gain, which could impact future comparisons.
- Book Publishing segment experienced a $16 million one-time write-off related to inventory at HarperCollins' international operations, impacting Segment EBITDA.
Historical Earnings Impact
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