The New York Times delivered a strong performance for the first quarter of 2026, beating Wall Street consensus estimates on both the top and bottom lines. Total revenue climbed 12% year-over-year to $712.2 million, fueled by a powerful combination of digital subscription gains and an unexpected surge in digital advertising. The media company added approximately 310,000 net new digital-only subscribers during the quarter, lifting its total subscriber count past a major milestone to 13.08 million.
This subscription momentum translated into a 16.1% jump in digital-only subscription revenue, which reached $389 million. Meanwhile, digital advertising revenue skyrocketed 31.6% to $93.3 million due to high demand for premium, brand-safe marketing environments alongside expanded ad supply across its lifestyle, games, and sports verticals.
On the profitability front, GAAP net income rose 77% to $87.9 million, while adjusted earnings per share jumped 48.8% to $0.61, easily clearing the $0.49 analyst forecast. Despite facing $4.2 million in pre-tax litigation costs related to ongoing generative AI copyright lawsuits, the company demonstrated impressive operational leverage as its adjusted operating profit margin expanded by 200 basis points to 16.6%.
Following its Q1 beat, The New York Times Company issued positive Q2 2026 guidance, forecasting year-over-year digital-only subscription revenue growth of 14% to 17% and total subscription revenue gains of 10% to 12%. Digital ad spend is projected to rise in the high teens, driving total advertising growth into the high single digits to offset secular print declines. Meanwhile, adjusted operating costs are expected to increase 8% to 9% as the company funnels capital into its video journalism portfolio.
For the full fiscal year 2026, the company reiterated structural confidence in the company's multi-product bundle, pacing toward expanded margins, robust free cash flow, and an ultimate target of 15 million subscribers.
The New York Times has taken a landmark step by suing OpenAI (and Microsoft) in late 2023 over alleged copyright infringement tied to AI training. Courts have allowed the case to move forward, rejecting OpenAI’s motion to dismiss most claims. A consequential data retention order—requiring OpenAI to store even deleted user chats—has also elevated the dispute into a broader battle over AI governance and privacy. OpenAI continues to dispute the claims and is seeking to reverse the retention requirement while defending the legality of its model training practices.
By early 2025, The Times spent $10.8 million on legal fees tied to the lawsuit. Overall, by the end of 2025, the lawsuit had progressed but not been decided, with courts allowing the core copyright claims to move forward while the parties fight over evidence and data access. The outcome is widely seen as a landmark test of whether using copyrighted material to train generative AI qualifies as fair use, a decision that could reshape how AI developers and media companies structure licensing agreements going forward.
The New York Times Co. (NYT) is a media company focused on creating and distributing high-quality news and information. Currently, the company makes money through print newspapers, online advertising, and newspaper circulation fees. In 2011, the company launched its paid subscription service for NYTimes.com, adding a digital circulation revenue stream. A growing number of digital subscribers - subscribe to more than one of The Times’s products, which include the The Times, games, recipes, the Wirecutter review site, and The Athletic, a sports news website. As of December 31, 2025, the company had approximately 12.8 million subscribers.
Below are key drivers of New York Times's value that present opportunities for upside or downside to the current Trefis price estimate:
For additional details, select a division from the interactive Trefis split for New York Times at the top of the page.
Online media provides more abundantly available information, at a faster rate and at cheaper prices when compared to print media. This has effectively rendered print newspapers obsolete, and online reading is made further easier by tablets/smartphones, both physical circulation and print advertising within newspapers should see a decline going forward.
Consumers are increasingly willing to pay for high quality digital content, particularly as misinformation concerns rise and trusted brands gain importance. The New York Times is well positioned to benefit from this shift due to its global reach and reputation for credible journalism.
The company is increasingly emphasizing its bundled subscription offering that combines News, Games, Cooking, and The Athletic. Bundling improves customer retention and raises average revenue per user, while also helping the company reach its target of 15 million subscribers by 2027.
The rapid growth of generative AI has created new risks and opportunities for media companies. The New York Times has taken a leading role in challenging the use of publisher content in AI training without compensation. The outcome of ongoing litigation could reshape licensing arrangements between technology platforms and news organizations.
