News Corp (NWSA) · Nov 4, 2026 · Earnings

News Corp earnings beat as Dow Jones and books offset weak cash flow

Beat — Adjusted EPS $0.28 vs ~$0.26 consensus

News Corp’s Q1 earnings narrowly beat consensus as Dow Jones, real estate and book publishing grew. Free cash flow turned sharply negative.

News Corp entered fiscal 2027 as a higher-margin media and information-services company increasingly dependent on three growth engines: Dow Jones, digital real estate and Book Publishing. Fiscal 2026 ended with record profitability and stronger operating cash flow, reinforcing that transformation.

The quarter modestly beat the market’s bar. Adjusted EPS was $0.28 versus published consensus of roughly $0.26, while revenue of $2.281 billion was slightly above estimates around $2.26–$2.27 billion. The filing says first-quarter revenue rose 6% and net income rose 43% year over year.

Q1 FY2027Q1 FY2026Consensus
Revenue (Financial Highlights)$2.281B (+6%)$2.144B~$2.27B
Adjusted EPS (EPS reconciliation)$0.28$0.22~$0.26
Total Segment EBITDA (Segment results)$403M (+19%)$340M
Free cash flow (Cash Flow statement)$(89)M$4M

The underlying operating mix was healthy, led by Dow Jones and Book Publishing. Dow Jones revenue grew 8% and EBITDA grew 11%, with total news subscriptions up 8% and digital-only subscriptions up 10%. 〔0〕 Book Publishing revenue rose 9% and EBITDA rose 29%, while Digital Real Estate Services EBITDA increased 34% on reported revenue growth.

The main blemish is that reported growth overstates some of the operating improvement. Foreign exchange contributed $43 million to consolidated revenue and $15 million to EBITDA; on an adjusted basis, revenue growth was 4% and EBITDA growth was 13%. Digital real estate still grew strongly, but REA’s Australian listing volumes declined 2%, with Sydney and Melbourne down 16%, while Move’s users fell 8% and leads fell 11%.

Cash conversion weakened materially despite the earnings beat. Operating cash flow fell to $13 million from $85 million, and free cash flow swung to negative $89 million as working-capital movements, higher taxes and $102 million of capital spending absorbed cash. The company also repurchased $166 million of shares and paid $61 million in dividends, leaving cash at $1.777 billion versus $2.095 billion at June 30.

Bottom line: This was a modest earnings beat that confirms the core growth engines are executing, especially Dow Jones and Book Publishing. It improves the operating story slightly, but the sharp cash-flow deterioration and weaker underlying real-estate and news-media trends keep it from being a decisive upgrade.

What to watch next

Q2 FY2027 earnings, early February

Original filing on SEC EDGAR

More News Corp news

News Corp earnings beat as Dow Jones and books offset weak cash flow | NWSA Stock News
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