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1. Company Snapshot

1.a. Company Description

News Corporation, a media and information services company, creates and distributes authoritative and engaging content, and other products and services for consumers and businesses worldwide.It operates in six segments: Digital Real Estate Services, Subscription Video Services, Dow Jones, Book Publishing, News Media, and Other.The company distributes content and data products, including The Wall Street Journal, Barron's, MarketWatch, Investor's Business Daily, Factiva, Dow Jones Risk & Compliance, Dow Jones Newswires, and OPIS through various media channels, such as newspapers, newswires, websites, mobile apps, newsletters, magazines, proprietary databases, live journalism, video, and podcasts.


It also owns and operates daily, Sunday, weekly, and bi-weekly newspapers comprising The Australian, The Weekend Australian, The Daily Telegraph, The Sunday Telegraph, Herald Sun, Sunday Herald Sun, The Courier Mail, The Sunday Mail, The Advertiser, Sunday Mail, The Sun, The Sun on Sunday, The Times, The Sunday Times, and New York Post, as well as digital mastheads and other websites.In addition, the company publishes general fiction, nonfiction, children's, and religious books; provides sports, entertainment, and news services to pay-TV and streaming subscribers, and other commercial licensees through cable, satellite, and internet distribution; and broadcasts rights to live sporting events.Further, it offers property and property-related advertising and services on its websites and mobile applications; online real estate services; and financial services.


The company was founded in 2012 and is headquartered in New York, New York.

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1.b. Last Insights on NWSA

News Corporation faced negative drivers over the past three months. The company's Q2 earnings revealed mixed segment trends across publishing, digital, and ads. Despite beating Q2 earnings estimates, with revenues rising 6% year-over-year, fueled by strength across Dow Jones, Digital Real Estate, and Book Publishing, several institutional investors reduced their stakes, including Great Lakes Advisors LLC by 49.9% and Blue Grotto Capital LLC by 44.1%. Additionally, the stock received a "Moderate Buy" rating from analysts, with one rating a sell, according to Marketbeat.com.

1.c. Company Highlights

2. News Corp's Strong Q2 FY2026 Earnings: A Closer Look

News Corporation reported a robust second quarter fiscal 2026, with revenues increasing 6% to $2.4 billion and total segment EBITDA expanding 9% to $521 million. The company's adjusted EPS for the quarter was 40¢, up from 33¢ in the prior quarter, beating analyst estimates. Net income from continuing operations was $242 million, a 21% decrease from the prior year, primarily due to the absence of a gain on REA Group's sale of Property Guru last year.

Publication Date: Feb -11

📋 Highlights
  • Revenue Growth Accelerated: Q2 revenue increased 6% to $2.4 billion, driven by digital growth and segment performance.
  • Total Segment EBITDA Expanded: Grew 9% to $521 million, marking 11th consecutive quarter of year-over-year growth.
  • Dow Jones Outperformed: Revenue rose 8% to $648 million with 10% EBITDA growth ($191 million) due to digital circulation and subscription gains.
  • Adjusted EPS Improved: Increased from 33¢ to 40¢, despite a 21% net income decline ($242 million) caused by the absence of a prior-year REA Group gain.
  • Strategic Buybacks & AI Positioning: $172 million in share repurchases executed; AI deals advanced, leveraging proprietary content and a "moat" for competitive advantage.

Segment Performance

The company's key segments continued to drive growth, with Dow Jones and Digital Real Estate Services reporting double-digit profit growth. Dow Jones' revenue rose 8% to $648 million, and segment EBITDA grew 10% to $191 million. Digital real estate segment revenues of $511 million rose 8% year-over-year, driven by growth at REA and Realtor.com.

Operational Efficiency and Margin Expansion

News Corporation's focus on operational efficiency and margin expansion continued to pay off, with the company reporting its eleventh consecutive quarter of year-over-year total segment EBITDA growth. The company's reported fiscal second quarter revenue and total segment EBITDA demonstrate its ability to drive growth through its diversified portfolio.

Valuation and Outlook

With a P/E Ratio of 11.06 and an EV/EBITDA of 13.9, News Corporation's stock appears to be reasonably valued. The company's Free Cash Flow Yield of 4.9% is also attractive. As Robert Thomson stated, "News Corporation has a unique position due to its proprietary content and moat," which is expected to drive continued growth. Analysts estimate next year's revenue growth at 3.8%, and the company's robust balance sheet and diversified portfolio position it well for future success.

Mergers and Acquisitions Strategy

News Corporation's M&A strategy is focused on maximizing shareholder value, with the company constantly looking for investments externally that make sense for the business. The company has recently acquired several businesses and is also focused on driving shareholder value through buybacks, having bought back $172 million worth of shares in the second quarter.

3. NewsRoom

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News Corp's Meta deal. Are news organisations no more than LLM 'input companies'?

Mar -04

Source: proactiveinvestors.co.uk

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Meta Reportedly Signs $50 Million News Corp Deal As Big Tech's AI Content Arms Race Heats Up

Mar -04

Source: feeds.benzinga.com

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News Corp, Meta in AI Content Licensing Deal Worth Up to $50 Million a Year

Mar -03

Source: wsj.com

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Housing Supply Gap Surpasses 4 Million Homes in 2025 as Construction Fails to Keep Pace With Demand

Mar -03

Source: prnewswire.com

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News Corporation (NWSA) Presents at Morgan Stanley Technology, Media & Telecom Conference 2026 Transcript

Mar -02

Source: seekingalpha.com

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Artisan Partners Limited Partnership Reduces Stake in News Corporation $NWSA

Feb -28

Source: defenseworld.net

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News Corporation $NWSA Stock Position Raised by Citigroup Inc.

Feb -28

Source: defenseworld.net

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Welcome to Our Open House: Realtor.com® Announces SXSW 2026 Line Up

Feb -20

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.01%)

6. Segments

News Media

Expected Growth: 1.8%

News Media from News Corporation's 1.8% growth is driven by increasing demand for digital news, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on cost-cutting initiatives and investments in digital infrastructure have improved operational efficiency, contributing to the growth.

Dow Jones

Expected Growth: 2.2%

Dow Jones' 2.2% growth is driven by increasing demand for financial news and information, particularly in the wake of the COVID-19 pandemic. Strong subscription growth, driven by its digital transformation efforts, and a rebound in advertising revenue also contribute to its growth. Additionally, the company's diversification into new markets and expansion of its data analytics business further support its growth momentum.

Book Publishing

Expected Growth: 1.5%

News Corporation's Book Publishing segment growth of 1.5% is driven by increasing demand for digital content, strategic acquisitions, and expansion into emerging markets. Additionally, the company's focus on bestselling authors and popular franchises, such as HarperCollins' partnership with Agatha Christie's estate, contributes to revenue growth.

Subscription Video Services

Expected Growth: 2.5%

The 2.5% growth in Subscription Video Services from News Corporation is driven by increasing demand for premium content, expansion into new markets, and strategic partnerships. Additionally, the rise of cord-cutting and shift towards online streaming have contributed to the growth, as consumers seek affordable and convenient entertainment options.

Digital Real Estate Services

Expected Growth: 2.1%

The 2.1% growth in Digital Real Estate Services from News Corporation is driven by increasing online property searches, rising demand for digital real estate solutions, and strategic acquisitions. Additionally, the company's strong brand presence, investments in technology, and expansion into new markets have contributed to this growth.

7. Detailed Products

Fox Broadcasting Company

A television network that provides entertainment, sports, and news programming to a wide audience.

Fox News Channel

A 24-hour cable news channel providing news, opinion, and commentary.

The Wall Street Journal

A leading international newspaper and online news site providing business, financial, and world news.

HarperCollins Publishers

A global book publisher of fiction, non-fiction, and children's books.

Fox Sports

A group of regional sports networks and national sports channels broadcasting live sports events.

National Geographic

A media company providing educational and entertaining content on science, history, and culture.

8. News Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

News Corporation operates in a highly competitive industry, with many substitutes available to consumers. However, the company's strong brand recognition and diversified portfolio of media assets mitigate the threat of substitutes to some extent.

Bargaining Power Of Customers

News Corporation's customers have limited bargaining power due to the company's dominant position in the media industry. The company's diverse range of media assets and strong brand recognition also reduce the bargaining power of customers.

Bargaining Power Of Suppliers

News Corporation's suppliers have moderate bargaining power due to the company's dependence on a few large suppliers for content and distribution. However, the company's scale and diversification efforts reduce the bargaining power of suppliers.

Threat Of New Entrants

The threat of new entrants is high in the media industry, with low barriers to entry and the rise of digital media platforms. News Corporation faces significant competition from new entrants, which could potentially disrupt its business model.

Intensity Of Rivalry

The media industry is highly competitive, with many established players and new entrants vying for market share. News Corporation faces intense rivalry from competitors, which could lead to pricing pressures and reduced market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 33.68%
Debt Cost 4.31%
Equity Weight 66.32%
Equity Cost 10.73%
WACC 8.57%
Leverage 50.78%

11. Quality Control: News Corporation passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
News Corp

A-Score: 5.6/10

Value: 5.8

Growth: 5.1

Quality: 7.4

Yield: 2.0

Momentum: 4.0

Volatility: 9.0

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Sirius XM

A-Score: 5.5/10

Value: 8.5

Growth: 3.8

Quality: 5.5

Yield: 7.0

Momentum: 3.0

Volatility: 5.0

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Warner Music

A-Score: 5.1/10

Value: 2.6

Growth: 2.8

Quality: 6.9

Yield: 5.0

Momentum: 5.5

Volatility: 8.0

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Madison Square Garden Sports

A-Score: 4.8/10

Value: 4.4

Growth: 4.9

Quality: 4.2

Yield: 1.0

Momentum: 5.0

Volatility: 9.0

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Live Nation Entertainment

A-Score: 4.7/10

Value: 2.6

Growth: 8.3

Quality: 5.0

Yield: 0.0

Momentum: 5.0

Volatility: 7.3

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Endeavor Group Holdings

A-Score: 3.8/10

Value: 4.9

Growth: 3.8

Quality: 2.7

Yield: 0.0

Momentum: 5.5

Volatility: 6.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

24.03$

Current Price

24.03$

Potential

-0.00%

Expected Cash-Flows