News (NASDAQ:NWS) Announces Quarterly Earnings Results, Beats Expectations By $0.11 EPS

News (NASDAQ:NWS) released its earnings results on Wednesday. The company reported $0.35 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.24 by $0.11, FiscalAI reports. News had a return on equity of 6.12% and a net margin of 12.92%.The firm had revenue of $2.25 billion during the quarter, compared to analyst estimates of $2.25 billion.

Here are the key takeaways from News’ conference call:

• Record profitability and cash generation: Fiscal Q4 revenue rose 11% to $2.3 billion and total segment EBITDA increased 31% to $423 million, while full-year free cash flow climbed 42% to $811 million.
• Core growth engines remained strong. Dow Jones EBITDA grew 20%, Digital Real Estate Services EBITDA surged 46%, and HarperCollins revenue increased 15%; management also reiterated its path toward $1 billion of Dow Jones EBITDA by fiscal 2030.
• News Corp repurchased $643 million of shares in fiscal 2026, more than four times the prior year’s amount, and said its strong balance sheet and cash flow provide flexibility for continued capital returns.
• AI licensing is expanding: Management said the Meta and OpenAI partnerships are contributing to the business, with additional horizontal and industry-specific deals in the pipeline, while litigation continues against companies accused of using News Corp content without authorization.
• Management flagged ongoing risks from Middle East developments, higher mortgage rates and challenging housing conditions, as well as incremental costs for the California Post rollout and a difficult first-quarter comparison in News Media.

News Stock Performance

NWS stock traded up $0.41 during trading on Wednesday, hitting $33.13. The company had a trading volume of 1,723,433 shares, compared to its average volume of 1,107,615. The firm has a 50-day moving average price of $30.43 and a 200-day moving average price of $29.26. The company has a quick ratio of 1.59, a current ratio of 1.70 and a debt-to-equity ratio of 0.21. The firm has a market cap of $18.14 billion, a PE ratio of 16.48 and a beta of 0.88. News has a 1-year low of $25.49 and a 1-year high of $35.58.

Wall Street Analyst Weigh In

Several analysts have recently weighed in on NWS shares. Zacks Research downgraded News from a “strong-buy” rating to a “hold” rating in a report on Thursday, July 30th. Weiss Ratings upgraded News from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Monday, July 13th. One analyst has rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat.com, News has an average rating of “Moderate Buy”.

Institutional Investors Weigh In On News

Several large investors have recently modified their holdings of NWS. NewEdge Advisors LLC acquired a new stake in shares of News in the 2nd quarter worth $30,000. ExodusPoint Capital Management LP purchased a new position in shares of News during the 4th quarter worth approximately $37,000. Arax Advisory Partners acquired a new stake in shares of News in the 4th quarter valued at approximately $47,000. Smartleaf Asset Management LLC boosted its position in shares of News by 74.5% during the 4th quarter. Smartleaf Asset Management LLC now owns 2,056 shares of the company’s stock worth $62,000 after purchasing an additional 878 shares in the last quarter. Finally, Danske Bank A S purchased a new stake in shares of News during the 3rd quarter worth approximately $97,000. Hedge funds and other institutional investors own 14.63% of the company’s stock.

About News

News Corporation (NASDAQ: NWS) is a global media and information services company engaged in news and digital real estate, book publishing and other media businesses. The company’s operations include print and digital newsbrands, business and financial information services, consumer platforms for property listings, and a major book publishing arm. Through its subsidiaries and brands, News Corp produces news content, market and financial reporting, online real-estate marketplaces and trade and consumer publishing products.

Key areas of activity include news and information, where the company publishes national and regional newspapers and operates business information services; book publishing through a well-known global publisher; and property-related digital businesses that operate online marketplaces for real estate listings.