News Corp Q3 profit beats estimates on growth in Dow Jones, book publishing

News Corp

07/05/2026 21:29

Overview

US media and information services firm's fiscal Q3 revenue rose 9%, beating analyst expectations

Adjusted EPS for fiscal Q3 rose to $0.21, beating analyst expectations

Growth driven by Digital Real Estate, Dow Jones and Book Publishing segments

Outlook

News Corp expects strong growth in free cash flow generation for the full fiscal year

Company says potential AI-related deals should have a positive impact on revenue and profitability

Company cites continued strength in Q4 and expects a strong fiscal finish

Result Drivers

DIGITAL REAL ESTATE GROWTH - Higher revenues at REA Group, driven by positive foreign exchange impacts and strong Australian residential performance, and at Move, due to premium offerings and growth in adjacent markets

DOW JONES SEGMENT - Growth in professional information business, especially Risk & Compliance and Energy, and higher digital advertising revenues

BOOK PUBLISHING SALES - Higher physical and digital book sales, led by Rachel Reid’s Game Changers and supported by recent acquisitions

Company press release: ID:nBw3nmHxda

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$2.19 bln
$2.11 bln (6 Analysts)
Q3 Adjusted EPS
Beat
$0.21
$0.18 (4 Analysts)
Q3 Segment EBITDA
$343 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the consumer publishing peer group is "buy"

Wall Street's median 12-month price target for News Corp is $32.40, about 23.7% above its May 6 closing price of $26.20

The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 25 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)