News Corp’s third quarter performance reflected resilience across its digital-focused business lines, with management attributing margin expansion and profit growth to strength in Dow Jones, Digital Real Estate Services, and Book Publishing. CEO Robert Thomson credited these three areas as “clearly more than the sum of their prosperous parts,” highlighting robust demand for professional information services, property data, and audiobooks. Despite ongoing volatility in advertising and global economic conditions, the company’s operational focus and content monetization supported continued revenue gains. CFO Lavanya Chandrashekar emphasized that "operational efficiency has driven meaningful margin expansion," noting that the core growth engines delivered 24% EBITDA growth collectively.
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News Corp (NWSA) Q3 CY2026 highlights:
- Revenue $2.28 billion vs S&P analysts’ estimates of $2.27 billion (6.4% year-on-year growth, in line)
- Adjusted EPS $0.28 vs S&P analysts’ estimates of $0.26 (7.7% beat)
- Adjusted EBITDA $403 million vs analyst estimates of $391 million (17.7% margin, 3.1% beat)
- Operating margin 12.1%, up from 10.4% in the same quarter last year
- Market capitalization $14.66 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our top 5 analyst questions from News Corp’s Q3 earnings call
- Brent Penter (Raymond James) asked about the value of AI content deals and the company's positioning amid agentic AI trends. CEO Robert Thomson described ongoing negotiations and the expectation that new deals will be visible in financial results, while reaffirming the strategy to defend intellectual property rights in court if necessary.
- Ailsa Lei (UBS) questioned the higher year-on-year capital expenditures and future spending outlook. CFO Lavanya Chandrashekar attributed the increase to timing effects and expressed confidence in strong free cash flow for the full year, downplaying structural changes in capital needs.
- Entcho Raykovski (Evans & Partners) inquired about weaker free cash flow in the quarter. Chandrashekar explained that late-quarter revenue recognition and inventory buildup at HarperCollins, plus normal seasonality, impacted timing, but maintained a positive outlook for cash generation over the year.
- Craig Huber (Huber Research) asked about AI-driven cost savings and areas of product enhancement. Chandrashekar declined to provide specific figures but highlighted broad AI adoption in engineering, customer service, and analytics, while Thomson detailed applications in real estate and audiobooks for improved consumer experiences.
- Douglas Wardlaw (JPMorgan) probed the sustainability of digital ad growth amid search and AI-driven traffic changes. Thomson credited News Corp’s destination sites and network effect for resilient engagement, while Chandrashekar cited strong advertiser demand in tech and finance as supporting factors.
Catalysts in upcoming quarters
In the coming quarters, our analysts will focus on (1) the pace and financial contribution of new AI content licensing agreements and settlement payments, (2) tangible cost efficiencies and product enhancements resulting from AI integration across core business units, and (3) the ability of Digital Real Estate and Book Publishing segments to sustain growth despite external market headwinds. The evolution of digital advertising engagement and ongoing legal actions around intellectual property will also be important signposts.
News Corp currently trades at $26.51, down from $30.56 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).
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