News Corp Q2 Earnings Exceed Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 05 2026
0mins
Should l Buy NWSA?
Source: seekingalpha
- Earnings Beat: News Corp reported a Q2 non-GAAP EPS of $0.40, exceeding expectations by $0.03, which reflects ongoing improvements in profitability and boosts investor confidence.
- Significant Revenue Growth: The company achieved $2.36 billion in revenue for Q2, a 5.4% year-over-year increase that surpassed analyst expectations by $60 million, indicating effective sales strategies and competitive positioning in the market.
- Strong EBITDA Performance: Total segment EBITDA reached $521 million, a 9% increase from $478 million in the prior year, showcasing successful cost control and operational efficiency, thereby strengthening its financial foundation.
- One-Time Write-Off Impact: The results included a $16 million one-time write-off primarily related to inventory at HarperCollins’ international operations, yet the overall performance still demonstrates strong growth potential.
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Analyst Views on NWSA
Wall Street analysts forecast NWSA stock price to rise
3 Analyst Rating
3 Buy
0 Hold
0 Sell
Strong Buy
Current: 23.810
Low
38.00
Averages
40.33
High
43.00
Current: 23.810
Low
38.00
Averages
40.33
High
43.00
About NWSA
News Corporation is a diversified media and information services company. Its Digital Real Estate Services segment consists of the Company’s interest in REA Group and Move. REA Group is a digital media business specializing in property and property-related services on its Websites and mobile apps. Move is a provider of digital real estate services in the United States and primarily operates a real estate information, advertising and services platform, as well as its referral-based services, online tools and services to do-it-yourself landlords and tenants. Its Dow Jones segment consists of Dow Jones, a global provider of news and business information, which distributes its content and data through a variety of media channels. Its Book Publishing segment consists of HarperCollins, a consumer book publisher with operations in 15 countries. Its News Media segment consists of News Corp Australia, News UK and the New York Post and includes The Australian, The Daily Telegraph, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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- Agreement Duration: The deal spans at least three years, granting Meta access to News Corp content from the US and UK, enabling the company to provide fresh reporting for its AI product users and train systems on archival material, thereby enhancing content richness and accuracy.
- Competitive Landscape: News Corp's separate AI deal with OpenAI, valued at over $250 million in 2024, indicates escalating competition between Meta and OpenAI for quality news resources, as both aim to enhance their AI offerings through premium content acquisition.
- Stock Price Reaction: Following the announcement, Meta's shares rose 0.23% during regular trading but fell 0.14% in after-hours trading, reflecting market caution regarding the deal, while News Corp's Class A and B shares exhibited mixed performance in after-hours trading, indicating varying investor expectations for future earnings.
See More
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- Market Reaction: Following the announcement, News Corp's shares rose 1.2% in after-hours trading, while Meta's shares slipped slightly, indicating a positive market response to News Corp and a more cautious outlook on Meta, reflecting differing investor sentiments regarding the future collaboration of the two companies.
- CEO Hints and Future Plans: News Corp CEO Robert Thomson hinted at the deal during an investment conference, stating that the company is in advanced negotiations with other parties, indicating a strategic acceleration in News Corp's AI initiatives and the potential for more collaborations in the future.
- Industry Context: News Corp's $250 million content licensing deal with OpenAI in 2024 highlights its proactive expansion in the AI content space, while its partnership with Google has also generated an annual revenue of $6 million, further solidifying its position in the digital content market.
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Berkshire Hathaway's Investment Strategy: Despite Buffett's fondness for newspapers, Berkshire Hathaway has been reducing its investments in the newspaper industry due to its struggles.
Current Trends in Newspaper Industry: The newspaper industry has faced significant challenges, prompting Berkshire Hathaway to reassess its involvement.
Future of Newspaper Investments: The recent scaling back of investments suggests a cautious approach from Berkshire Hathaway regarding the future of newspapers.
See More
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- Government Funding Initiative: News Corp announced it will match the U.S. government's one-time $1,000 contribution to the 'Trump Accounts', aimed at providing financial support for children born in the U.S. between 2025 and 2028, thereby enhancing family financial security.
- Employee Participation Opportunity: Starting in July, eligible U.S. employees will have the chance to participate in this pilot program, receiving a $1,000 seed contribution from the U.S. Treasury to help establish a financial foundation for their children during critical growth stages.
- Corporate Strategic Intent: News Corp CEO Robert Thomson stated that the matching contribution aims to strengthen the financial situation of employees' children at a crucial developmental moment, reflecting the company's commitment to its employees and their families.
- Global Business Overview: News Corp is a global, diversified media and information services company focused on creating and distributing authoritative content, with operations spanning information services, digital real estate services, and book publishing across various regions.
See More
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- Purpose of Contribution: The funding aims to support children's financial futures and promote savings for education and other expenses.
See More
