NEWS CORPORATION REPORTS FIRST QUARTER RESULTS FOR FISCAL 2027
NEWS CORP (NWS) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 NEWS CORPORATION REPORTS FIRST QUARTER RESULTS FOR FISCAL 2027 FISCAL 2027 FIRST QUARTER KEY FINANCIAL HIGHLIGHTS • First quarter revenues were $2.28 billion, a 6% increase compared to $2.14 billion in the prior year, driven by growth at the Digital Real Estate Servi
How this was made
The 30-second read
Why it matters
The earnings surprise and segment growth are likely to drive short‑term buying pressure, with potential upside if guidance remains strong.
Market read
First‑hand earnings data provides a clear catalyst for immediate trading decisions on NWS.
What to watch
Foreign‑currency gains contributed $43 M; a reversal in FX could dampen future results.
News Corporation reports fiscal 2027 first-quarter revenue of $2.28 billion, net income of $215 million and Total Segment EBITDA of $403 million.
Revenue increased 6%, net income increased 43%, Total Segment EBITDA increased 19%, and all three stated growth engines, Digital Real Estate Services, Dow Jones and Book Publishing, delivered revenue growth. Cash conversion was weak, with free cash flow of $(89) million versus $4 million in the prior year.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, three months ended September 30GAAP | $2.28B | – | 6% |
| Adjusted Revenues, three months ended September 30non-GAAP | $2.22B | – | 4% |
| Total revenues constant currency, three months ended September 30non-GAAP | $2.24B | – | 4% |
| Circulation and subscription revenues, three months ended September 30GAAP | $823M | – | 5% |
| Advertising revenues, three months ended September 30GAAP | $323M | – | 2% |
| Consumer revenues, three months ended September 30GAAP | $556M | – | 9% |
| Real estate revenues, three months ended September 30GAAP | $418M | – | 13% |
| Other revenues, three months ended September 30GAAP | $161M | – | (2)% |
| Operating expenses, three months ended September 30GAAP | −$988M | – | – |
| Selling, general and administrative, three months ended September 30GAAP | −$890M | – | – |
| Depreciation and amortization, three months ended September 30GAAP | −$126M | – | 8% |
| Impairment and restructuring charges, three months ended September 30GAAP | −$20M | – | 5% |
| Equity losses of affiliates, three months ended September 30GAAP | −$3M | – | 50% |
| Interest income, net, three months ended September 30GAAP | $4M | – | 33% |
| Other, net, three months ended September 30GAAP | $38M | – | (850)% |
| Income before income tax expense, three months ended September 30GAAP | $296M | – | – |
| Income tax expense, three months ended September 30GAAP | −$81M | – | 31% |
| Net income, three months ended September 30GAAP | $215M | – | 43% |
| Net income attributable to News Corporation stockholders, three months ended September 30GAAP | $159M | – | – |
| Net income attributable to noncontrolling interests, three months ended September 30GAAP | −$56M | – | – |
| Net income attributable to News Corporation stockholders per share, basic and diluted, three months ended September 30GAAP | $0.29 | – | – |
| Adjusted net income attributable to News Corporation stockholders, three months ended September 30non-GAAP | $151M | – | – |
| Adjusted EPS, three months ended September 30non-GAAP | $0.28 | – | – |
| Total Segment EBITDA, three months ended September 30non-GAAP | $403M | – | 19% |
| Adjusted Total Segment EBITDA, three months ended September 30non-GAAP | $392M | – | 13% |
| Net cash provided by operating activities from continuing operations, three months ended September 30GAAP | $13M | – | – |
| Capital expenditures, three months ended September 30GAAP | −$102M | – | – |
| Free cash flow, three months ended September 30non-GAAP | −$89M | – | – |
| Net cash used in financing activities from continuing operations, three months ended September 30GAAP | −$261M | – | – |
| Net change in cash and cash equivalents, including discontinued operations, three months ended September 30GAAP | −$327M | – | – |
| Cash and cash equivalents, as of September 30, 2026GAAP | $1.78B | – | – |
| Current borrowings, as of September 30, 2026GAAP | $3M | – | – |
| Borrowings, as of September 30, 2026GAAP | $2.01B | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Dow JonesHigher circulation and subscription revenues and higher digital advertising revenues. | $630M | – | 8% |
| Digital Real Estate ServicesHigher revenues at both REA Group and Move. | $529M | – | 10% |
| Book PublishingHigher physical and digital book sales, reflecting strength in General Books and Children’s Publishing. | $582M | – | 9% |
| News MediaLower other revenues and lower print advertising revenues, partially offset by a $17 million, or 3%, positive impact from foreign currency fluctuations. | $540M | – | (1)% |
Capital returns
- Repurchase of News Corp shares: $(166) million for the three months ended September 30, 2026, compared to $(92) million in the prior year.
- Dividends paid: $(61) million for the three months ended September 30, 2026, compared to $(47) million in the prior year.
What drove it
- Total revenue growth was primarily driven by higher revenues at Digital Real Estate Services, Book Publishing and Dow Jones.
- Foreign currency fluctuations had a $43 million, or 2%, positive impact on total revenue.
- Dow Jones digital revenues represented 85% of total revenues, compared to 84% in the prior year.
- Dow Jones Risk & Compliance revenues grew 11% to $104 million, and Dow Jones Energy revenues grew 8% to $79 million.
- REA Group revenue increased $42 million, or 13%, to $369 million, including a $27 million, or 8%, positive impact from foreign currency fluctuations.
- Move revenue increased $8 million, or 5%, to $160 million, led by higher sales of RealPRO Select SM.
- Book Publishing digital sales increased 6%, driven by an increase in audiobook sales.
Concerns
- News Media revenue decreased $5 million, or 1%, and Segment EBITDA decreased $12 million, or 40%.
- News Media adjusted revenue decreased 4%, while adjusted Segment EBITDA decreased 40%.
- Move average monthly unique users were 66 million, an 8% decrease, and lead volumes decreased 11%.
- The Sun’s digital offering reached 57 million global monthly unique users in September 2026, compared to 77 million in the prior year.
- New York Post’s digital network reached 84 million monthly unique users in September 2026, compared to 94 million in the prior year.
- Free cash flow was $(89) million, compared to $4 million in the prior year, primarily due to lower operating cash flow and a $21 million increase in capital expenditures.
- Income tax expense was $(81) million, compared to $(62) million in the prior year.
What to watch
- Whether Dow Jones sustains circulation, licensing and digital advertising growth, including the 11% growth in Dow Jones Risk & Compliance revenues.
- REA Group’s Australian residential revenue performance as Australian national residential buy listing volumes declined 2%, with Sydney and Melbourne down 16%.
- Move lead quality, user trends and RealPRO Select SM sales following the 8% decline in average monthly unique users and 11% decrease in lead volumes.
- News Media print advertising, other revenue and profitability trends.
- Working-capital movements, tax payments, capital expenditures and the recovery of free cash flow.
Balance sheet and cash flow
- Cash and cash equivalents were $1,777 million as of September 30, 2026, compared to $2,095 million as of June 30, 2026.
- Borrowings were $2,009 million as of September 30, 2026, compared to $1,989 million as of June 30, 2026.
- Net cash provided by operating activities from continuing operations was $13 million, compared to $85 million in the prior year.
- Capital expenditures were $(102) million, compared to $(81) million in the prior year.
- Free cash flow was $(89) million, compared to $4 million in the prior year.
- Net cash used in investing activities from continuing operations was $(79) million, compared to $(101) million in the prior year.
- Net cash used in financing activities from continuing operations was $(261) million, compared to $(179) million in the prior year.
Analysis
News Corp opened fiscal 2027 with broad reported growth. Total revenue increased 6% to $2.28 billion and adjusted revenue increased 4% to $2,216 million. The reported result included a $43 million, or 2%, positive foreign-currency impact. Net income increased 43% to $215 million, while Total Segment EBITDA increased 19% to $403 million and adjusted Total Segment EBITDA increased 13% to $392 million. GAAP diluted EPS was $0.29 versus $0.20, and adjusted EPS was $0.28 versus $0.22.
The three stated growth businesses all expanded revenue. Dow Jones revenue rose 8% to $630 million, supported by circulation and subscription revenue, licensing and digital advertising. Digital revenue represented 85% of Dow Jones revenue. Digital Real Estate Services revenue increased 10% to $529 million, with REA Group revenue up 13% to $369 million and Move revenue up 5% to $160 million. Book Publishing revenue increased 9% to $582 million as physical and digital book sales improved. Segment EBITDA increased 11% at Dow Jones, 34% at Digital Real Estate Services and 29% at Book Publishing.
News Media remained the principal operational offset. Revenue declined 1% to $540 million, or 4% on an adjusted basis, and Segment EBITDA declined 40% to $18 million. The segment faced lower other revenue and print advertising, although foreign exchange provided a $17 million benefit to reported revenue. Digital revenue represented 41% of News Media revenue versus 38% in the prior year. Audience indicators were weaker at several properties, including Move, The Sun and the New York Post.
Cash flow did not match the earnings expansion. Operating cash flow from continuing operations fell to $13 million from $85 million, attributed primarily to working-capital timing and higher tax payments. Capital expenditures increased to $(102) million from $(81) million, resulting in free cash flow of $(89) million versus $4 million. The company repurchased $(166) million of shares and paid $(61) million of dividends. Cash and cash equivalents ended the quarter at $1,777 million, down from $2,095 million at June 30, 2026. The release provided no forward financial guidance.
Management, verbatim
We began Fiscal 2027 with a record first quarter performance, as revenues increased 6 percent to $2.3 billion, net income expanded 43 percent to $215 million and Total Segment EBITDA surged 19 percent to $403 million, while our margins expanded meaningfully and earnings per share were 29 cents compared to 20 cents in the prior year.
Robert Thomson, Chief Executive
Our three engines of growth - Digital Real Estate Services, Dow Jones and Book Publishing - collectively delivered robust results despite volatile economic conditions.
Robert Thomson, Chief Executive
Not in the filing
stated, not guessed- Forward financial guidance was not provided.
- Previous-period outlook was not provided, so no comparison with prior guidance is available.
- Gross margin was not reported.
- Operating income was not reported as a separate line item.
- Tax rate was not reported.
- Prior-year cash and cash equivalents were not reported.
- Prior-year and prior-quarter comparisons were not reported for several balance-sheet line items.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
The filing is a standard SEC 8‑K Item 2.02 earnings release for News Corp, a Nasdaq‑listed media conglomerate.
Ticker impact
News Corp filed its 8‑K reporting Q1 FY2027 results with revenue up 6% to $2.28 B and net income up 43% to $215 M.
upward pressure as investors price in higher revenue and earnings growth
The primary disclosure of a sizable earnings beat and double‑digit segment EBITDA growth is new information that typically drives the stock higher on the day of release.
Market effects
Media and digital advertising sectors may see a lift as News Corp signals robust demand for digital real‑estate and subscription services.
U.S. market sentiment could improve modestly, especially among consumer discretionary and communication services stocks.
Limited to companies with exposure to digital content and subscription models; no broad macro impact.
Counterpoint
If guidance falls short of market expectations, the stock could face a short‑term pullback despite the earnings beat.
Key entities
- companyNews Corp
Nasdaq‑listed media and publishing company reporting FY2027 Q1 results.
