News Corporation (NWSA/NWS) - Q1 2026 (Ended Sept 30, 2025) Summary
Business Context and Reporting Period
This Form 10-Q covers the three months ended September 30, 2025 (Q1 of Fiscal 2026). News Corporation 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 reporting period follows the sale of the Foxtel Group, which is now classified as discontinued operations.
Key Financial Metrics
| Metric | Q1 2026 (Sept 30, 2025) | Q1 2025 (Sept 30, 2024) |
|---|---|---|
| Total Revenues | $2,144 million | $2,096 million |
| Net Income (Continuing Ops) | $150 million | $149 million |
| Net Income Attributable to Stockholders | $112 million | $119 million |
| Diluted EPS (Continuing Ops) | $0.20 | $0.21 |
| Segment EBITDA | $340 million | $325 million |
| Operating Cash Flow | $85 million | $26 million |
| Free Cash Flow | $4 million | $(49) million |
| Cash and Equivalents | $2,198 million | $1,763 million |
| Total Borrowings | $1,956 million | $1,962 million |
Material Changes vs. Prior Period
- Revenue Growth: Total revenues increased 2% ($48 million) year-over-year, driven by Dow Jones (up 6%) and Digital Real Estate Services (up 5%). This was partially offset by a 2% decline in Book Publishing revenues due to lower digital sales and title mix.
- Profitability: Net income attributable to stockholders decreased 6% to $112 million, primarily due to a $7 million increase in net income attributable to noncontrolling interests (largely from REA Group), despite a slight increase in total net income.
- Cost Management: Operating expenses decreased 1% due to lower costs in Book Publishing and News Media, though Selling, General, and Administrative (SG&A) expenses rose 5% due to higher employee/marketing costs at Dow Jones and a $13 million receivable write-off at Book Publishing.
- Cash Flow: Operating cash flow improved significantly by $59 million to $85 million, turning Free Cash Flow positive ($4 million) compared to a negative $49 million in the prior year.
Outlook, Risks, and Unusual Items
- Capital Allocation: The Company announced a new $1 billion stock repurchase program in July 2025. During Q1, it repurchased $94 million of shares. A semi-annual dividend of $0.10 per share was paid in October 2025.
- Discontinued Operations: The sale of Foxtel closed in April 2025. Results are now excluded from continuing operations, impacting year-over-year comparability for the News Media segment.
- Legal Contingencies:
- Dow Jones (OPIS): Antitrust class actions regarding PVC pipe pricing are in settlement (preliminary approval received) or under investigation by the DOJ and state attorneys general.
- HarperCollins: Antitrust litigation with Amazon was dismissed with prejudice in March 2024, though plaintiffs retain appeal rights pending the Amazon case resolution.
- U.K. Newspaper Matters: Ongoing civil claims related to historical practices; the Company has accrued approximately $20 million in liabilities.
- Investments: HarperCollins entered a new $120 million equipment lease for a warehouse in October 2025.
Investor Verification Checklist
- Noncontrolling Interests: Verify the impact of REA Group's earnings on the reduction of Net Income Attributable to News Corporation stockholders.
- Book Publishing Receivables: Review the $13 million write-off related to a book distributor closure and its impact on future SG&A trends.
- Legal Settlements: Monitor the final court approval of the OPIS antitrust settlement and potential exposure from the Canadian class action.
- Share Repurchases: Track the execution of the new $1 billion repurchase program and remaining authorization ($1.216 billion as of Sept 30, 2025).
- Foreign Currency: Assess the impact of currency fluctuations, which provided a $4 million revenue tailwind but a $5 million expense headwind in this quarter.