NWS US S&P 500Russell 1000 Earnings call

News Corp (Class B) (NWS) · Q2 2026 results and valuation

Share price: $29.93 · 2026-11-11

News Corp is a global media and information services company that provides news, book publishing, and digital real estate services. It serves consumers and businesses through various digital and traditional platforms in the United States, Australia, and the United Kingdom. Source: 10-K annual report (2026-08-07)

Results Q2 2026 vs Q1 2026 · previous quarter · fiscal Q4 2026 · published 5 Aug 2026 and 7 May 2026

Net income up 292.1% on the previous quarter. Management sounded very upbeat, though noticeably less so answering analysts.

1 · Numbers

+292.1%

Net income vs Q1 2026

Net income 349.0M vs 89.0M

Revenue +7.0%

Against the same quarter last year (Q2 2025) it is −61.4%, so the move on last quarter looks seasonal or timing-related rather than a trend.

2 · How management spoke

Very upbeat

More upbeat than 96% of company calls

Answers to analysts: upbeat, but clearly less so than the script.

Last call it was different: the answers were more upbeat than the script.

3 · What stood out

News Corp reported free cash flow of $811 million for fiscal 2026, a 42% year-over-year increase, representing approximately a 50% conversion from EBITDA.

Valuation

Is News Corp (Class B) undervalued?

Reverse DCF. Free cash flow from the last full fiscal year (2026-06-30), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.

At 4.1% growth a year (3-year revenue growth), the model's fair value is $22.42 a share — the stock trades 33% above it. Today's price assumes 8.0% growth a year.

Current price

$29.93

close of 2026-11-11

Market implies growth of i

+8.0% for 10 yrs

Fair value / share

$22.42

Buy below

$16.82

Price vs fair value

Overvalued 33%

Price vs buy-below price

Overvalued 78%

FCF growth / yr i Discount rate i Terminal growth i Margin of safety i

Official channels

The company's own website and social media accounts.

Website

Read between the lines

Figure

Revenue increased 11% to $2.3 billion and segment EBITDA rose 31% to $423 million over last year, resulting in record profitability for the fourth quarter.

Source quote
“We are delighted to report record profitability for our fourth quarter, with a sterling 11% increase in revenue to $2.3 billion, whilst we generated $423 million in total segment EBITDA, soaring 31% over last year.”
Figure

Dow Jones reported fourth quarter revenues of $644 million, a 7% increase, and EBITDA of $191 million, which grew 20% to close the year.

Source quote
“Dow Jones delivered impressive results to close the year, with fourth quarter revenues rising 7% to $644 million, and EBITDA growth of 20% to $191 million.”
Figure

Revenue rose 19% to $553 million and EBITDA expanded 46% to $222 million in Q4, marking a performance described as emphatic.

Source quote
“Together, they posted an emphatic Q4 performance, with revenues rising 19% to $553 million, while EBITDA expanded 46% to $222 million.”
Figure

Digital demand drove a 12% revenue increase in Q4 2026, supported by a 16% audiobook boost and an 11% e-book resurgence.

Source quote
“Digital demand was robust, with revenues growing 12%, supported by a 16% audiobook boost and an e-book resurgence of 11%.”
Figure

Revenues grew 15% to $566 million, outperforming recent industry trends.

4 more

Figure

Free cash flow improved in fiscal 2026 to $811 million, a 42% year-over-year increase, representing a conversion of approximately 50% from EBITDA.

Source quote
“Finally, free cash flow, defined as cash from operations less CapEx, improved in fiscal 2026 to $811 million, up 42% year-over-year, and represented approximately 50% conversion from EBITDA.”
Figure

The fiscal year margin rose from 16.7% to 18%, providing a basis for the company's expectation of further margin expansion in the current fiscal year.

Source quote
“It is particularly noteworthy that our margin for the fiscal year rose from 16.7% to 18%, and we are encouraged by the prospect of further margin expansion in the current fiscal year.”
Figure

NWS accelerated its share buyback to more than four times the prior year's rate at $643 million for the fiscal year due to a stronger cash position.

Source quote
“That stronger cash position enabled us to aggressively return capital to shareholders, with the buyback accelerating to well over four times the prior year's rate at $643 million for the fiscal year.”
Key theme

The company plans to focus on free cash flow improvement in fiscal 2027 because it is expected to be a source of value expansion.

Source quote
“Looking forward into fiscal 2027, I would just say that free cash flow improvement remains a key focus for us, and we do expect it to be a source of value expansion.”

Tone

How upbeat the language was, compared with other companiesi. Dot: Q2 2026. Ring: Q1 2026.

Prepared remarks Very upbeat (was cautious)

Answers to analysts Upbeat (was very upbeat)

Management sounded noticeably less positive answering analysts than in its prepared script — a bigger drop than in 96% of calls. Scripts are polished in advance; a drop under questioning often marks the topics analysts pressed on, so the answers deserve a closer read than the script.

Sentences that drove the tone

“Digital revenues at HarperCollins grew 12%, including 16% in audiobooks, exiting with the highest quarterly growth rate this year, driven by strong growth at both Spotify and Audible.”

“Fiscal 2026 marked another big step in the transformation of News Corp as we added new AI licensing revenues, accelerated the pace of product innovation, meaningfully improved profit margins and...”

“At Realtor.com, revenues increased 13%, marking the third straight quarter of double-digit growth and the seventh consecutive quarter of year-on-year expansion, even though mortgage rates rose in recent months.”

Full figures

USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)

Metric	Q2 2026period end 2026-06-30	Q1 2026period end 2026-03-31	Change	Q2 2025	YoY
Revenue	2.34B	2.19B	+7.0%	2.11B	+10.8%
Operating income	278.0M	189.0M	+47.1%	132.0M	+110.6%
Net income	349.0M	89.0M	+292.1%	903.0M	−61.4%
P/E today 25.9	27.2	14.3	+12.9	16.6	+10.6

Topics

Most discussed now

Fiscal 2026 marked another big step in the transformation of News Corp as News added new AI licensing revenues, accelerated...
News' focus on operational efficiency has driven meaningful margin expansion.
As you've seen, News has experienced particularly rapid audiobook growth in recent years, its partnership with Spotify is leading to an...
It's fair to say, by the way, that AI will certainly provide a role in helping bring books to life...

Faded since Q1 2026

Fading News is now a digital-first company with a strong recurring revenue base, complemented by high-margin content licensing revenues.
Fading It's worth noting that as of quarter 3, on a trailing 12-month basis, the ratio of realtor.com's revenue to existing...
Dropped News is looking very much forward to the discovery process because it has full confidence that fascinating illuminating material will…
Dropped The decline in EBITDA reflected modestly tougher trading conditions in Australia and the U.K.

Latest announcements

Official filings, newest first.

2026-11-06 Other events · SEC 8-K
2026-11-05 Shareholder vote results; Regulation FD disclosure · SEC 8-K
2026-11-05 Other events · SEC 8-K
2026-11-04 Results of operations · SEC 8-K
2026-11-04 Other events · SEC 8-K
2026-11-03 Other events · SEC 8-K
2026-11-02 Other events · SEC 8-K
2026-10-30 Other events · SEC 8-K

Balance sheet & ownership

From SEC filings; short interest is FINRA data via Yahoo. Collected 2026-10-19.

Cash & runway

Cash & equivalents

$2.10B

2026-06-30

Long-term investments

$1.00B

total liquidity $3.10B

Implied runway

—

operating cash flow positive over the TTM window

Dilution

weighted-average basic shares, per quarter. Change: -2.3% YoY, -1.2% QoQ.

Quarter	Shares
Q3 2024	569.2M
Q4 2024	568.5M
Q1 2025	567.2M
Q3 2025	564.9M
Q4 2025	560.6M
Q1 2026	554.0M

Insider transactions

Form 4 open-market trades (codes S/P), trailing 12 months. Coverage: newest 50 of 55 filings; 50 filings parsed.

Sold by insiders

110.8K shares

$3.2M · 5 transactions

Bought by insiders

0 shares

0 transactions

Net direction

net selling

Catalyst calendar

management-stated targets — from the latest earnings call; plans, not promises.

fiscal 2030

goal of generating $1 billion in segment EBITDA

Source quote
“We remain on track to achieve our goal of generating $1 billion in segment EBITDA by fiscal 2030.”
first quarter

improved growth in the first quarter

Source quote
“The pipeline for new energy contracts is robust, and we expect improved growth in the first quarter.”
fiscal 2027

further improvements in fiscal 2027

Source quote
“While it's still very early, we continued to see benefits from these initiatives, delivering accelerated year-over-year growth in digital direct subscription ARPU, and expect further improvements in fiscal 2027.”
first quarter

improvement of B2B revenues, notably at Dow Jones Energy

Source quote
“At Dow Jones, we expect continued strong revenue performance and anticipate B2B revenues, notably at Dow Jones Energy, to improve in the first quarter.”
July

Australian residential new buy listings

Source quote
“At Digital Real Estate Services, Australian residential new buy listings for July declined 2%.”