Business Context and Reporting Period
Company: News Corporation (News Corp)
Filing Type: Form 10-K (Annual Report)
Reporting Period: Fiscal year ended June 30, 2026 (52 weeks)
Business Overview: A global diversified media and information services company operating in five segments: Dow Jones, Digital Real Estate Services, Book Publishing, News Media, and Other. The Company distributes content via digital platforms, print, and radio, with significant operations in the U.S., Australia, and the U.K.
Key Financial Metrics
| Metric | Fiscal 2026 | Fiscal 2025 | Change |
|---|---|---|---|
| Total Revenues | $9,028 million | $8,452 million | +7% |
| Net Income (Continuing Ops) | $743 million | $648 million | +15% |
| Net Income (Total) | $743 million | $1,340 million | -45% |
| Net Income Attributable to News Corp | $573 million | $1,180 million | -51% |
| Segment EBITDA (Total) | $1,627 million | $1,415 million | +15% |
| Free Cash Flow | $811 million | $571 million | +42% |
| Cash and Cash Equivalents | $2,095 million | $2,403 million | -13% |
| Total Debt Outstanding | $2,000 million | $1,962 million | +2% |
Note: The decrease in Total Net Income is primarily due to the absence of $692 million in net income from discontinued operations (Foxtel) in Fiscal 2025, which was sold in April 2025.
Material Changes vs. Prior Period
- Revenue Growth: Total revenues increased by $576 million (7%). Growth was driven by the Digital Real Estate Services segment (+12%), Dow Jones (+7%), and Book Publishing (+6%). Foreign currency fluctuations contributed a $189 million positive impact.
- Segment Performance:
- Dow Jones: Revenues rose to $2,497 million; EBITDA increased to $663 million. Growth driven by higher circulation/subscription and advertising revenues.
- Digital Real Estate Services: Revenues rose to $2,016 million; EBITDA increased to $741 million. Driven by REA Group and Move performance.
- Book Publishing: Revenues rose to $2,288 million; EBITDA decreased slightly to $287 million due to higher costs and one-time write-offs ($16 million inventory, $13 million receivable).
- News Media: Revenues rose to $2,227 million; EBITDA decreased to $139 million due to higher costs (California Post launch, FIFA World Cup) and lower advertising revenues.
- Discontinued Operations: Fiscal 2025 included $692 million of net income from the sale of Foxtel. Fiscal 2026 had no discontinued operations.
- One-Time Items: Fiscal 2026 included $113 million in impairment and restructuring charges, compared to $132 million in Fiscal 2025.
Guidance, Outlook, and Risks
- Management Commentary: The Company continues to capitalize on the shift to digital consumption and AI-focused platforms. It is pursuing strategies to leverage global audience scale and data. Management does not ordinarily make projections of future operating results.
- Capital Allocation:
- Share Repurchases: Completed the $1 billion 2021 Repurchase Program. Announced a new $1 billion 2025 Repurchase Program; $667 million remained authorized as of June 30, 2026.
- Dividends: Paid $0.20 per share in Fiscal 2026. Declared a subsequent semi-annual dividend of $0.10 per share in August 2026.
- Key Risks:
- AI and Technology: Competition from AI platforms and unauthorized use of content (scraping) pose threats to revenue and intellectual property.
- Macroeconomic Conditions: High interest rates and housing market conditions adversely impact the Digital Real Estate Services segment. Inflation and supply chain issues affect printing costs.
- Regulatory: Evolving data privacy laws (GDPR, CCPA) and U.K. press regulations increase compliance costs and operational complexity.
- Legal Proceedings: Ongoing antitrust investigations (OPIS) and class actions (HarperCollins/Amazon) present potential liabilities.
Investor Verification Checklist
- Discontinued Operations Impact: Verify the exclusion of Foxtel results from Fiscal 2026 to accurately compare year-over-year organic growth.
- Foreign Currency Sensitivity: Assess the impact of AUD and GBP fluctuations on reported revenues and EBITDA, which provided a $189 million revenue boost in 2026.
- Real Estate Market Exposure: Monitor U.S. and Australian housing market trends, as high interest rates and low inventory continue to pressure the Digital Real Estate Services segment.
- AI Monetization vs. Risk: Evaluate the balance between revenue from AI licensing partnerships and the risk of content devaluation due to unauthorized AI scraping.
- Debt Covenants: Confirm compliance with the 3.5x adjusted operating income net leverage ratio under the new 2026 Credit Agreement.