News Corporation (NWSA/NWS) - Q3 2026 Filing Summary
Business Context and Reporting Period
This summary covers News Corporation's Form 10-Q for the quarterly period ended March 31, 2026 (Fiscal Q3 2026). News Corp is a global diversified media and information services company operating through five segments: Dow Jones, Digital Real Estate Services, Book Publishing, News Media, and Other. The company completed the sale of its Foxtel Group in April 2025, which is now reported as discontinued operations.
Key Financial Metrics
| Metric (in millions) | Q3 2026 | Q3 2025 | 9M 2026 | 9M 2025 |
|---|---|---|---|---|
| Total Revenues | $2,185 | $2,009 | $6,691 | $6,343 |
| Net Income (Continuing Ops) | $121 | $107 | $513 | $562 |
| Net Income Attributable to News Corp | $89 | $103 | $394 | $437 |
| Diluted EPS (Continuing Ops) | $0.16 | $0.14 | $0.70 | $0.75 |
| Segment EBITDA | $343 | $290 | $1,204 | $1,093 |
| Free Cash Flow (9M) | $535 | $539 | - | - |
| Cash and Equivalents | $2,171 | - | - | - |
| Total Borrowings | $1,988 | - | - | - |
Material Changes vs. Prior Period
- Revenue Growth: Total revenues increased 9% ($176M) in Q3 and 5% ($348M) for the nine months ended March 31, 2026, compared to the prior year. Growth was driven by Digital Real Estate Services (REA Group and Move), Dow Jones (subscriptions), and Book Publishing.
- Profitability: Net income from continuing operations rose 13% in Q3 but declined 9% for the nine-month period. The nine-month decline was impacted by higher operating expenses and the absence of a one-time gain from the sale of REA Group's interest in PropertyGuru in the prior year.
- Segment Performance:
- Dow Jones: Revenues up 8% (Q3) and 7% (9M); EBITDA up 11% (Q3) and 10% (9M). Driven by subscription growth and professional information services.
- Digital Real Estate: Revenues up 17% (Q3) and 10% (9M); EBITDA up 25% (Q3) and 16% (9M). Driven by REA Group and Move growth.
- Book Publishing: Revenues up 8% (Q3) and 4% (9M); EBITDA up 14% (Q3) but down 7% (9M) due to one-time write-offs and higher costs.
- News Media: Revenues up 5% (Q3) and 2% (9M); EBITDA down 55% (Q3) and 8% (9M) due to lower contributions from News UK and costs for the new California Post.
- Foreign Currency: Favorable foreign currency fluctuations contributed $88M to Q3 revenue and $118M to nine-month revenue.
Guidance, Outlook, and Risks
- Capital Allocation: The company completed its $1 billion 2021 share repurchase program in Q3 2026. A new $1 billion 2025 program remains active with approximately $851 million authorized as of March 31, 2026. A semi-annual dividend of $0.10 per share was paid in April 2026.
- Liquidity: Cash and cash equivalents stood at $2.2 billion. The company entered into a new $1.5 billion credit facility (2026 Credit Agreement) in March 2026, extending maturities to 2031.
- Risks and Contingencies:
- Legal Proceedings: Ongoing antitrust investigations and class actions involving Dow Jones (OPIS) and HarperCollins. A settlement regarding OPIS antitrust claims received preliminary approval in July 2025.
- U.K. Newspaper Matters: Civil claims related to historical practices at The News of the World and The Sun. The company has accrued approximately $16 million in liabilities, with an estimated $24 million receivable from FOX Corporation for indemnification.
- Geopolitical: Monitoring regional instability (e.g., Iran conflict) which could impact energy prices and consumer spending.
- Outlook: Management expects strong growth in free cash flow for the full fiscal year despite moderately higher capital expenditures.
Investor Verification Checklist
- Share Repurchase Status: Verify the remaining $851 million authorization under the 2025 Repurchase Program and the pace of future buybacks.
- News Media EBITDA: Monitor the impact of the new California Post launch and the performance of News UK on segment profitability.
- Legal Accruals: Track updates on the OPIS antitrust settlement finalization and the U.K. Newspaper Matters indemnification receivable from FOX.
- Foreign Currency Sensitivity: Assess the sustainability of revenue growth given the significant positive impact of currency fluctuations in the current period.
- Debt Covenants: Confirm continued compliance with the new 2026 Credit Agreement leverage ratio (3.5 to 1.0).