Hello, everyone, and welcome to News Corp's fiscal 3rd quarter 2026 earnings call. We issued our earnings press release about 30 minutes ago, and it's now posted on our website at newscorp.com. Additionally, this call will include certain non-GAAP financial measurements, such as total segment EBITDA, adjusted segment EBITDA, and adjusted EPS. The definitions and GAAP to non-GAAP reconciliations to such measures can be found in the earnings releases for the applicable periods posted on our website.

News Corp has again delivered resounding results this quarter, indeed marking the 12th straight quarter of profitability growth on a continuing operations basis. Net income from continuing operations rose 13%, whilst both EPS and adjusted EPS were notably higher. We remain on track for another record fiscal year of profitability, given the strength seen thus far in the fourth quarter. The robust free cash flow and strong cash position have provided much optionality in maximizing long-term shareholder value.

We are negotiating several further deals with companies who recognize the preciousness of our provenance and which should have a positive impact on our revenue and profitability. Revenues rose 8% to $619 million, and segment EBITDA expanded by 11% to $147 million, with our margin expanding by 70 basis points Compared to a year-earlier to 23.7%. Significantly, this marks 13 consecutive quarters of year-over-year EBITDA growth for Dow Jones, bolstered by continuing strength across Risk & Compliance and our burgeoning Energy business. As we shared during our Investor Day in March, we see a clear path for Dow Jones to reach $1 billion in annual segment EBITDA within the next five years.

What went well
  • Total revenue rose 9% to $2.2 billion and total segment EBITDA jumped 18% to $343 million, expanding overall margin from 14.4% to 15.7%; net income from continuing operations rose 13% and adjusted EPS reached $0.21 versus $0.17, marking the 12th straight quarter of segment EBITDA growth.
  • Dow Jones posted its 13th consecutive quarter of YoY EBITDA growth: revenue +8% to $619 million, EBITDA +11% to $147 million (margin 23.7%, +70bps), with Risk & Compliance +19% to $100 million, Energy +12% to $77 million (~90% retention), digital advertising +13% and digital-only subscriptions +9%.
  • Digital Real Estate Services EBITDA surged 25% to $155 million with margin widening from 30.5% to 32.8%; Realtor.com revenue rose 10% to $148 million (gaining visit share to 31%) and REA revenue grew 20% (8% constant currency) on a 14% yield increase and a 21% rise in financial-services settlements.
  • HarperCollins delivered its highest Q3 EBITDA since fiscal 2021, up 14% to $73 million on 8% revenue growth to $555 million (margin 12.5%->13.2%), led by e-books +17%, audiobooks +7% and strong demand for the Heated Rivalry / Game Changers series.
  • Strong cash flow funded accelerated capital returns ($193 million repurchased in Q3, up from $172 million, $459 million fiscal year-to-date) and momentum in AI content licensing, including the new Meta agreement, the OpenAI partnership and an expected share of the $1.5 billion Anthropic settlement.
What went wrong
  • News Media segment EBITDA fell $18 million year-over-year to just $15 million, hit by lower News UK contribution and launch/marketing costs for the new California Post; on an adjusted basis News Media revenue declined 2% amid continued print revenue declines.
  • The U.S. and Australian housing markets remained pressured, with 30-year mortgage rates above 6% and March existing home sales near historic lows (about 3.98 million), constraining the Realtor.com/REA backdrop.
  • Dow Jones print advertising fell 6% and consumer circulation growth was tempered (circulation revenue +1%) by the absence of a prior-year licensing revenue timing benefit.
  • REA India revenue declined due to the sale of PropTiger and the closure of the Housing Edge business.

More on News Corp

Reported 2026-05-07 · figures from the News Corp Q3 2026 earnings call.

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