News Corp delivered Q4 results ahead of Wall Street’s expectations, with management attributing performance to growth in Dow Jones and Digital Real Estate Services. CEO Robert Thomson pointed to double-digit profit increases in these core segments and emphasized the company’s ongoing transition toward digital-first revenues and reduced reliance on advertising. The favorable outcome was further supported by subscription expansion at Dow Jones and a rebound in HarperCollins, despite a one-time inventory charge. Management highlighted that operational discipline and margin expansion across most business lines were key contributors to the improved performance this quarter.
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News Corp (NWSA) Q4 CY2025 Highlights:
- Revenue: $2.36 billion vs analyst estimates of $2.29 billion (5.5% year-on-year growth, 3% beat)
- Adjusted EPS: $0.40 vs analyst estimates of $0.37 (6.9% beat)
- Adjusted EBITDA: $521 million vs analyst estimates of $498.9 million (22.1% margin, 4.4% beat)
- Operating Margin: 17.1%, in line with the same quarter last year
- Market Capitalization: $13.53 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From News Corp’s Q4 Earnings Call
- David Karnovsky (JPMorgan) asked about AI’s impact on News Corp’s business model. CEO Robert Thomson responded that proprietary, real-time content provides a “moat,” and AI licensing deals represent opportunity rather than threat.
- Entcho Raykovski (Evans Partners) questioned the scale of Dow Jones’ technology investments. Thomson said CapEx for Dow Jones would be modestly down, with CFO Lavanya Chandrashekar emphasizing continued strong free cash flow despite ongoing tech investments.
- David Joyce (Seaport Research) inquired about capital allocation priorities. Thomson reiterated focus on Dow Jones, Digital Real Estate, and HarperCollins, with Chandrashekar highlighting the possibility of increased buybacks supported by loan repayments.
- David Arvest (Macquarie) asked about the M&A strategy versus share buybacks. Thomson stated the company remains opportunistic, seeking strategic investments while prioritizing value and capital returns.
- Elsa Lee (UBS) queried about Dow Jones ARPU and pricing strategy. Thomson explained that while enterprise growth impacts average revenue per user, targeted price increases and dynamic pricing are being implemented to balance ARPU and subscriber growth.
Catalysts in Upcoming Quarters
Looking forward, the StockStory team will be watching (1) whether new AI licensing deals are signed and deliver material revenue, (2) sustained digital subscription growth and engagement, especially at Dow Jones and Realtor.com, and (3) continued progress in cost management and free cash flow generation. Developments in the real estate market and successful product rollouts will also be critical for tracking execution against strategic goals.
News Corp currently trades at $23.22, down from $24.21 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).
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