VALUATION HIGHLIGHTS
- Book Publishing constitutes 32% of the Trefis price estimate for News Corp's stock.
- Dow Jones constitute 26% of the Trefis price estimate for News Corp's stock.
- News Media constitutes 21% of the Trefis price estimate for News Corp's stock.
WHAT HAS CHANGED?
- News Corp Q3 2026 Snapshot
Total revenue reached $2.19 billion, reflecting a 9% increase year over year and beating Wall Street expectations of $2.12 billion. Net income from continuing operations rose 13% to $121 million, up from $107 million in the prior year period. Total Segment EBITDA grew a robust 18% year over year to $343 million. On the bottom line, reported GAAP EPS from continuing operations rose to $0.16 compared to $0.14 last year, while adjusted Non-GAAP EPS landed at $0.21, outpacing the consensus analyst estimate of $0.19 and marking a 23.5% jump from the $0.17 reported in the third quarter of fiscal 2025.
Note: News Corp's FY'25 ended on June 30, 2025. Q3'26 refers to quarter that ended on March 31, 2026
- Outlook
Management did not provide specific numerical forward guidance but noted that the strong operational trends observed early in the fourth fiscal quarter provide deep confidence in their full-year trajectory. Growth into the next quarter is expected to be led by its core digital profit engines, including the Dow Jones segment—which is pacing toward a long-term goal of $1 billion in annual EBITDA, and the Digital Real Estate Services segment, where Australian residential new buy listings already surged 19% in April.
Additionally, the company expects ongoing margin expansion and revenue diversification from high-value AI content licensing deals with tech leaders like OpenAI and Meta, while continuing to execute its accelerated share buyback program to maximize long-term shareholder value.
- Sale of Foxtel
News Corp sold its Australian cable TV unit Foxtel to British-owned sports network DAZN for 3.4 billion Australian dollars ($2.1 billion), including debt, cutting the media empire’s exposure to a business upended by streaming platforms. Foxtel, launched by News Corp in 1995, has dragged profits due to declining subscribers switching to cheaper streaming services like Netflix. Despite efforts to diversify with streaming services like Kayo and ESPN, soaring sports broadcasting rights costs and shrinking revenue hurt earnings, leading Foxtel to share rights with free-to-air broadcasters to offset expenses.
DAZN is a London-headquartered global streaming platform available in North America, Europe, and Asia. DAZN competes against traditional TV and satellite channels and provides access to a range of sports content, including American football, boxing, and baseball, over its streaming platform.
Upon reclassification of Foxtel’s results, the Subscription Video Services segment ceased to be a reportable segment, and the residual results of the segment were aggregated into the News Media segment.
POTENTIAL UPSIDE & DOWNSIDE TO TREFIS PRICE
Below we highlight key drivers of News Corp's value that present opportunities for upside or downside to the current Trefis price estimate for News Corp.
Digital Real Estate
- Digital Real Estate Revenues: News Corp through REA offers digital advertising solutions to help real estate agents sell or rent properties and win new listings. The company generates revenues from advertising. REA owns and operates Australia's largest residential property website, realestate.com.au, and Australia's largest commercial property site, realcommercial.com.au. Moreover, the company acquired Move Inc. in the U.S. which will further drive the company's revenues. We estimate that segment revenues will grow from $1.8 billion in FY2025 to approximately $3 billion by the end of our forecast period. However, driven by a surge in housing demand in Australia and benefits from the Move group of websites, digital real estate could grow at a higher rate. There could be an upside of more than 7% to the Trefis price estimate for News Corp's stock if the segment revenues were to increase to $3.5 billion by the end of our forecast period. On the other hand, if the real estate ad marketplace tends to be softer, it could lead to slower-than-expected advertising growth for News Corp. If the revenues only grow to around $2.0 billion during the Trefis forecast period, there could be an 8% downside to our price estimate.
BUSINESS SUMMARY
News Corp is a diversified media and information services company. The Company operates in four segments: Dow Jones, Digital Real Estate Services, News Media, and Book Publishing. The company distributes its content under various popular brands, including The Wall Street Journal, Barron's Group, Herald Sun, and HarperCollins Publishers.
The Wall Street Journal, published by News Corp, is the leading circulation daily newspaper in the U.S., with an average print and digital circulation of approximately 4.5 million.
SOURCES OF VALUE
News Corp’s value is anchored in its high-margin digital and subscription businesses, notably Dow Jones (Wall Street Journal, Barron’s, B2B information services) and its stakes in online real estate platforms like REA Group and Realtor.com, which provide scalable, recurring revenue. Supporting this are HarperCollins, a stable cash-generating book publisher, and News Media, where print headwinds persist but digital subscriptions and advertising still contribute cash flow.
KEY TRENDS
Growth In Digital Content
Online media provides more abundant information, at a faster rate and cheaper prices when compared to print media. This has effectively rendered print newspapers obsolete, and as online reading is further made easier by tablets/smartphones, both physical circulation and print advertising within newspapers would likely see a decline going forward.
Migration To Other Media Alternatives
News Corp's businesses face competition from other sources of news, information, and entertainment content delivery, and consumers are migrating to other media alternatives. This reflects general trends in the newspaper industry, including declining newspaper buying by younger audiences and consumers' increasing reliance on the internet for the delivery of news and information, often without charge.
Social Media To Drive Future Growth
Social media is not the core revenue engine itself, but it can serve as a high-ROI marketing pipeline, boosting subscriptions, advertising, and engagement across News Corp’s digital assets. Platforms like X (Twitter), LinkedIn, Instagram, and TikTok are where readers increasingly discover news. By leveraging curated snippets, short-form video, and headline-driven content, News Corp can funnel users into paid subscriptions for Dow Jones, The Wall Street Journal, Barron’s, and other titles. News Corp can also monetize engagement through branded content, affiliate deals, and performance-based campaigns distributed via social channels, diversifying beyond print and traditional display ads.
