Key Highlights

  • Fiscal first-quarter Revenue reached USD 2.28 billion, a 6% gain on the USD 2.14 billion posted a year earlier, while Net Income of USD 215 million beat the prior-year USD 150 million by 43%.
  • Total Segment EBITDA of USD 403 million represented a 19% increase over USD 340 million. Stripping out currency and deal effects, the company's adjusted version of that measure rose 13%.
  • Reported EPS of USD 0.29 compares with USD 0.20, and adjusted EPS of USD 0.28 compares with USD 0.22.
  • Free Cash Flow of negative USD 89 million compares with positive USD 4 million a year earlier, as Capital spending of USD 102 million outweighed Operating Cash Flow of USD 13 million.

Currency Aid and a Divestiture Gain Shape the Quarter

News Corp (NASDAQ:NWS) generated revenue of USD 2.28 billion, a 6% rise that included USD 43 million, or 2%, from currency. Excluding currency, acquisitions and divestitures, adjusted revenue expanded 4%. Net income also received a lift from the gain on exiting REA India, though a heavier tax bill trimmed it. Class B shares trade on Nasdaq as NWS and Class A shares as NWSA. Chief Executive Robert Thomson called the period a record, noting fourteen straight quarters of year-on-year profit growth.

Dow Jones and Digital Real Estate Lead the Segment Gains

Dow Jones sales grew 8% to USD 630 million, and its segment EBITDA rose 11% to USD 160 million while average news subscriptions passed 6.9 million, up 8%. Wall Street Journal subscriptions increased 9% to 5.0 million. Digital Real Estate Services revenue reached USD 529 million, up 10%, while its segment EBITDA surged 34% to USD 212 million. REA Group revenue climbed 13% to USD 369 million, although an 8% currency lift was part of that figure and Australian residential buy listing volumes slipped 2%. Book Publishing revenue advanced 9% to USD 582 million, with EBITDA up 29% to USD 75 million, helped by lapping a USD 13 million customer receivable write-off.

News Media Slips While Cash Flow Turns Negative

News Media revenue slipped to USD 540 million, a 1% decline, and segment EBITDA was cut 40%, to USD 18 million, as print Advertising and other revenue weakened. Move, which runs the Realtor property sites, lifted revenue 5% to USD 160 million, but its monthly unique users averaged 66 million, down 8%, and lead volumes fell 11%. Negative free cash flow of USD 89 million reflected Working Capital timing and higher tax payments, along with capital spending that was USD 21 million higher. The release set out no formal guidance, and an Earnings Call was scheduled for November 4, 2026.

Where Things Stand

Operating growth did most of the lifting, with a one-off divestiture gain adding to the total. News Corp (NASDAQ:NWS) grew Total Segment EBITDA 19% on the strength of Dow Jones, REA Group and Book Publishing, and the REA India sale boosted net income further. Measured on adjusted EPS, USD 0.28 against USD 0.22 offers a tidier read. Soft spots include a 40% fall in News Media EBITDA, a shrinking Realtor audience and negative free cash flow. OpenAI and Meta appear among the company's content licensing partners, and it signals it is willing to pursue others legally. Watch the second-quarter report for signs that cash generation is recovering.