NWS

News (NWSA) moved into the spotlight after a Q2 report showing revenue up 10.8% year on year and a 4.1% beat versus analyst expectations, with the stock rising 6.4% since the release. Against that Q2 backdrop, News has seen the share price ease 1.8% over the past week, following a 30 day share price return of 4.6% and a 90 day share price return of 11.5%. Momentum has been positive over a longer horizon, with a 3 year total shareholder return of 47.8%, indicating that recent earnings have arrived after an already strong multi year run. Scan how News compares with other media and consumer stocks showing strong earnings momentum and digital revenue trends in our curated 47 high quality undervalued stocks list. Bulls point to News's strong Q2 beat and multi year shareholder gains, while bears question how much optimism is already in the price after the recent move. Which side does the current valuation support? Against the last close of $30.39, the most followed narrative for News points to a fair value of $36.68, framing current pricing as a discount. Read the complete narrative. Want to understand why this narrative sees more value in News than the market price suggests? The story hangs on steadier revenue, higher margins and a richer earnings base in a few years. Curious which earnings, revenue and multiple assumptions need to fall into place to back that $36.68 figure. Result: Fair Value of $36.68 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, the bullish News story can crack if print and legacy media continue to shrink, or if Realtor.com audience and lead declines deepen and hit digital revenue. Find out about the key risks to this News narrative. The narrative model indicates that News is 17.1% undervalued, with a fair value estimate of $36.68. The market-based view tells a different story. At a P/E of 28.7x, News trades above the US Media industry on 22.4x and above its own fair ratio of 20.3x. This suggests investors are already paying a premium. How comfortable are you with that gap if sentiment cools? See what the numbers say about this price — find out in our valuation breakdown. The mix of optimism and caution around News will only make sense when you have seen the data for yourself and weighed both sides. Move quickly, review the detailed risks and potential rewards, and ground your own view in the 2 key rewards and 1 important warning sign. If you stop with News, you could miss other opportunities that fit your style. Take a few minutes to scan fresh ideas that match your risk and return preferences. Target potential bargains by reviewing companies on our curated 47 high quality undervalued stocks before the market reassesses their pricing. Strengthen your income focus by checking out businesses in the 11 dividend fortresses that aim to support higher yields with solid fundamentals. Prioritize resilience by filtering for companies in the 82 resilient stocks with low risk scores that score well on risk factors and financial stability. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NWSA. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

News stock has delivered a strong 47.8% gain over the past three years, yet the current valuation checks suggest the shares lean expensive rather than offering obvious value. Investors are weighing that solid medium term return against signals that the stock does not screen as a clear bargain on standard metrics. Over the past three years, News has returned 47.8%, which puts recent share price strength front and center for anyone assessing value today. Talk of a potential re merger with Fox Corporation may support sentiment around future earnings power, while uncertainty over whether such a deal proceeds and on what terms can add valuation risk for existing shareholders. The broader checks point to News as overvalued on market multiples, and the company scores 0 out of 6 on value screens, so it does not come across as a clear bargain right now. For investors, the debate is whether the current price of News stock still offers enough potential reward to justify paying what looks like a relatively full valuation. Spot opportunities that may not appear as fully priced as News by scanning the hand picked 47 high quality undervalued stocks. The P/E ratio is a useful starting point for News because earnings are central to how investors value a mature media group. News currently trades on a P/E of 28.7x, which is higher than both the Media industry average of 22.2x and the peer group average of 13.8x. That places the stock on a clear premium to many listed media peers. The Fair Ratio model, which blends factors such as sector norms, profitability profile and risk, points to a P/E of 20.3x as a more typical level for News. Against that benchmark, the current 28.7x implies investors are paying a materially higher multiple than the model suggests. Despite the share price reaction to the recent earnings beat, the valuation still looks rich on earnings compared with where the stock might trade if it were closer to that Fair Ratio. On the P/E multiple, News stock currently appears expensive relative to both its industry and the modelled Fair Ratio. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for News are designed to connect the valuation puzzle to the specific future paths that would need to play out. They set out the earnings, growth and margin assumptions that would have to hold for News' stock to be worth materially more or less than today's price, and they turn a single output from a ratio or model into a set of conditions you can watch over time on the Community page. Community views on News are split between those who see digital growth and buybacks reshaping the story and those who focus on print and competitive pressures. Bull case: 17% undervalued Read the full Bull Case to see why News could be undervalued Bear case: roughly fairly valued Read the full Bear Case to see why News could be overvalued Do you think there's more to the story for News? Head over to our Community to see what others are saying! News looks overvalued on standard market multiples, with the current P/E sitting well above sector and peer benchmarks as well as the modelled Fair Ratio. For you, the key question is whether earnings, margins and any potential Fox-related developments eventually justify that premium, or whether expectations have run ahead of what the business can reasonably deliver. The crux of the debate is how much confidence you have that News can turn its digital, data and licensing story into durable earnings that support a still full price. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NWSA. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

In its latest reported quarter, News Corp posted a 10.8% year-on-year revenue increase and exceeded analyst expectations by 4.1%, marking one of the strongest fundamental performances among its consumer discretionary media peers despite ongoing sector headwinds. This outperformance, underpinned by earnings strength and momentum in digital advertising, highlights how News Corp’s evolving mix of higher-quality digital revenue streams is helping offset structural pressures in traditional media. We’ll now examine how this strong earnings beat and revenue acceleration may influence News Corp’s existing investment narrative and future assumptions. Find 47 companies with promising cash flow potential yet trading below their fair value. To own News Corp, you need to believe its shift toward digital subscriptions, data and advertising can more than balance the drag from legacy print and cyclical ad markets. The latest 10.8% revenue lift and earnings beat support that thesis in the near term, but do not remove the key short term risk that softness in advertising or real estate could quickly spill over into slower group revenue growth. The recent confirmation of another semi annual US$0.10 dividend sits alongside the earnings beat as a reminder that management is still prioritizing consistent capital returns. Together with the ongoing US$1.3 billion buyback, these announcements can amplify the impact of stronger earnings on per share metrics, but they also matter if core segments like News Media and Book Publishing continue to wrestle with structural and advertising headwinds. Yet against this strength, investors should be aware that growing AI related legal and licensing uncertainty could still... Read the full narrative on News (it's free!) News' narrative projects $9.9 billion revenue and $795.1 million earnings by 2029. This requires 4.0% yearly revenue growth and a $348.1 million earnings increase from $447.0 million today. Uncover how News' forecasts yield a $36.68 fair value, a 21% upside to its current price. Before this earnings surprise, the most optimistic analysts were already penciling in about US$10.3 billion of revenue and US$1.2 billion of earnings by 2029, which is far more upbeat than consensus and sits in sharp contrast to ongoing concerns about AI legal disputes and monetization risk. This quarter’s outperformance may either reinforce that bullish view or prompt a rethink, so it is worth weighing how differently you might see News Corp’s future. Explore 2 other fair value estimates on News - why the stock might be worth 41% less than the current price! Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your News research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision. Our free News research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate News' overall financial health at a glance. Right now could be the best entry point. These picks are fresh from our daily scans. Don't delay: Capitalize on the AI infrastructure supercycle with our selection of the 55 best 'picks and shovels' of the AI gold rush converting record-breaking demand into massive cash flow. We've uncovered the 11 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. Explore 25 top quantum computing companies leading the revolution in next-gen technology and shaping the future with breakthroughs in quantum algorithms, superconducting qubits, and cutting-edge research. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NWSA. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at News Corp (NASDAQ:NWSA) and the best and worst performers in the consumer discretionary - media industry. The Consumer Discretionary sector, by definition, is made up of companies selling non-essential goods and services. When economic conditions deteriorate or tastes shift, consumers can easily cut back or eliminate these purchases. For long-term investors with five-year holding periods, this creates a structural challenge: the sector is inherently hit-driven, with low switching costs and fickle customers. As a result, only a handful of companies can reliably grow demand and compound earnings over long periods, which is why our bar is high and High Quality ratings are rare. Media companies create, aggregate, and distribute content—including news, entertainment, and advertising—across television, print, digital, and out-of-home channels. Tailwinds include growing digital advertising budgets, content licensing opportunities, and global audience expansion through streaming and social platforms. Headwinds are substantial: traditional advertising revenue from print and linear TV continues its structural decline as audiences migrate to digital alternatives. Content creation costs are escalating amid intense competition for talent and intellectual property. Media fragmentation makes it difficult to build sustainable audience scale, while AI-generated content threatens to commoditize production and disrupt established business models. The 7 consumer discretionary - media stocks we track reported a satisfactory Q2. As a group, revenues missed analysts’ consensus estimates by 0.8%. In light of this news, share prices of the companies have held steady as they are up 4.5% on average since the latest earnings results. Established in 2013 after a restructuring, News Corp (NASDAQ:NWSA) is a multinational conglomerate known for its news publishing, broadcasting, digital media, and book publishing. News Corp reported revenues of $2.34 billion, up 10.8% year on year. This print exceeded analysts’ expectations by 4.1%. Overall, it was an exceptional quarter for the company with a beat of analysts’ EPS and EBITDA estimates. News Corp achieved the biggest analyst estimate beat among its peers. Unsurprisingly, the stock is up 6.4% since reporting and currently trades at $30.93. Is now the time to buy News Corp? Access our full analysis of the earnings results here, it’s free. Launching the careers of legendary artists like Frank Sinatra, Warner Music Group (NASDAQ:WMG) is a music company managing a diverse portfolio of artists, recordings, and music publishing services worldwide. Warner Music Group reported revenues of $1.86 billion, up 10.4% year on year, outperforming analysts’ expectations by 3.8%. The business had a very strong quarter with a beat of analysts’ EPS estimates and a decent beat of analysts’ EBITDA estimates. The market seems happy with the results as the stock is up 13.7% since reporting. It currently trades at $29.56. Is now the time to buy Warner Music Group? Access our full analysis of the earnings results here, it’s free. Creator of the legendary Scholastic Book Fair, Scholastic (NASDAQ:SCHL) is an international company specializing in children's publishing, education, and media services. Scholastic reported revenues of $476.1 million, down 6.3% year on year, falling short of analysts’ expectations by 7.9%. It was a softer quarter as it posted full-year EBITDA guidance missing analysts’ expectations significantly. Scholastic delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 17.5% since the results and currently trades at $38.32. Read our full analysis of Scholastic’s results here. Founded in 1851, The New York Times (NYSE:NYT) is an American media organization known for its influential newspaper and expansive digital journalism platforms. The New York Times reported revenues of $762.5 million, up 11.2% year on year. This number topped analysts’ expectations by 1.4%. It was a satisfactory quarter as it also put up a beat of analysts’ EPS estimates. The stock is down 11.4% since reporting and currently trades at $67.03. Read our full, actionable report on The New York Times here, it’s free. Formed from the merger of WarnerMedia and Discovery, Warner Bros. Discovery (NASDAQ:WBD) is a multinational media and entertainment company, offering television networks, streaming services, and film and television production. Warner Bros. Discovery reported revenues of $8.72 billion, down 11.2% year on year. This result lagged analysts’ expectations by 5%. Zooming out, it was a mixed quarter as it also recorded a beat of analysts’ EPS estimates but a slight miss of analysts’ EBITDA estimates. Warner Bros. Discovery had the slowest revenue growth of the whole group. The stock is up 9.2% since reporting and currently trades at $28.36. Read our full, actionable report on Warner Bros. Discovery here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Interested in News Corporation? Here are five stocks we like better. News Corp reported record fiscal 2026 profitability: Revenue rose 11% to $2.3 billion in Q4, total segment EBITDA increased 31% to $423 million, and full-year free cash flow climbed 42% to $811 million. Digital revenue accounted for 61% of annual revenue. Digital and B2B businesses led growth: Dow Jones EBITDA increased 20% with digital-only subscriptions approaching 6.3 million, while Digital Real Estate Services revenue rose 19% and EBITDA grew 46%. HarperCollins also delivered 15% revenue growth, supported by stronger frontlist, audiobook and e-book sales. The company is increasing capital returns and pursuing AI opportunities: News Corp repurchased $643 million of shares during fiscal 2026 and is developing content-licensing partnerships with OpenAI, Meta and other AI companies while pursuing legal action against alleged unauthorized content users. Management expects continued revenue growth and margin expansion in fiscal 2027, though higher mortgage rates may weigh on real estate activity. News (NASDAQ:NWS) reported record fourth-quarter profitability for fiscal 2026, with revenue rising 11% year over year to $2.3 billion and total segment EBITDA increasing 31% to $423 million. Net income from continuing operations climbed 167% to $230 million, while reported earnings per share rose to $0.33 from $0.09 a year earlier and adjusted EPS increased to $0.35 from $0.19. For the full fiscal year, revenue increased 7% to $9 billion and total segment EBITDA rose 15% to more than $1.6 billion. The company’s annual margin expanded to 18% from 16.7%, while free cash flow grew 42% to $811 million. Reported EPS for the year rose 23% to $1.03 and adjusted EPS increased 33% to $1.18. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control Chief Executive Robert Thomson said the results marked the company’s 12th consecutive quarter of year-over-year revenue growth and its 13th consecutive quarter of total segment EBITDA growth from continuing operations. He said News Corp has shifted toward a majority-digital business with expanded premium recurring revenue streams. Chief Financial Officer Lavanya Chandrashekar said 61% of fiscal 2026 revenue was digital. She also pointed to three consecutive years of mid-teens profit growth on a continuing-operations basis and said the company sees “substantial runway” for further margin improvement. → 3 Drone Stocks That Should Soar After the Summer Slump News Corp stepped up share repurchases during the year, buying back $184 million of stock in the fourth quarter and $643 million for fiscal 2026, compared with $150 million in fiscal 2025. Chandrashekar said the annual repurchase total benefited from approximately $380 million in repayments of Foxtel shareholder loans. Thomson said the company believes its intellectual property and professional content are important inputs for artificial-intelligence products. News Corp has content relationships with OpenAI and Meta and is in advanced discussions with other companies, he said. → The Bitcoin Comeback May Already Be Underway—2 ETFs for Exposure At the same time, Thomson said the company is pursuing legal action against AI companies it alleges have improperly used its copyrighted material, specifically citing Perplexity and Brave. He said News Corp’s claims against Brave focus on alleged use of web crawlers and the repackaging of copyrighted articles for enterprise customers. In response to an analyst question, Thomson said the company views its AI agreements as partnerships rather than merely transactional arrangements. He said future agreements could include both broad arrangements with major AI companies and sector-specific deals. Chandrashekar said the Meta agreement announced in March is now contributing to the business at both Dow Jones and News Media. Dow Jones posted fourth-quarter revenue of $644 million, up 7% from the prior year. Chandrashekar said the segment’s EBITDA was $181 million, up 20%, with margin expanding 310 basis points to 28.1%. Digital revenue represented 84% of segment revenue, compared with 83% a year earlier. Professional information revenue increased 5%, led by an 11% increase in Risk & Compliance revenue to $102 million. Dow Jones Energy revenue grew 4% to $76 million, with management citing the Middle East conflict and timing of new contracts as factors affecting growth. Chandrashekar said the pipeline for new energy contracts is robust and that the company expects improved growth in the first quarter. Digital-only subscriptions rose 9% to nearly 6.3 million, including approximately 194,000 sequential net additions, driven by enterprise news subscriptions. Digital advertising grew 10%, helping total advertising revenue rise 5% to $109 million despite a 6% decline in print advertising. The company increased the full price of a new Wall Street Journal digital subscription to $44.99 from $39.99 and raised introductory offer pricing. Chandrashekar said these actions have supported accelerated growth in digital direct-subscription average revenue per user. Digital Real Estate Services revenue increased 19% to $553 million, while segment EBITDA rose 46% to $222 million. On an adjusted basis, revenue rose 10% and EBITDA increased 33%. REA revenue rose 21%, or 9% in constant currency, aided by price increases, add-on product growth and an 11% increase in Australian residential new-buy listings. Realtor.com revenue grew 13% to $167 million, its seventh consecutive quarter of revenue growth. Management said Realtor.com’s growth was driven by core real estate products, particularly its RealPro Select premium marketing product, as well as a focus on higher-priced listings. Adjacent categories including new homes, rentals and sellers accounted for 22% of Realtor.com revenue during the quarter. HarperCollins revenue increased 15% to $566 million and EBITDA rose 14% to $57 million. Digital revenue grew 12%, including a 16% increase in audiobook revenue and an 11% increase in e-book revenue. Chandrashekar said stronger frontlist demand, higher backlist sales and deluxe editions supported the quarter. For fiscal 2027, News Corp said it expects continued strong revenue performance at Dow Jones and improved B2B revenue growth, particularly at Dow Jones Energy. The company also expects continued margin expansion supported by disciplined reinvestment. Chandrashekar said Australian residential new-buy listings declined 2% in July. At Realtor.com, the company expects potential revenue improvement, though a broader housing recovery could be affected in the near term by rising mortgage rates. News Corp expects HarperCollins to benefit from a strong frontlist and an easier comparison with the prior year. In News Media, the company expects incremental expenses tied to the continued rollout of the California Post, partly offset by benefits from new content-licensing revenue. News Corporation (NASDAQ: NWS) is a global media and information services company engaged in news and digital real estate, book publishing and other media businesses. The company's operations include print and digital newsbrands, business and financial information services, consumer platforms for property listings, and a major book publishing arm. Through its subsidiaries and brands, News Corp produces news content, market and financial reporting, online real-estate marketplaces and trade and consumer publishing products. Key areas of activity include news and information, where the company publishes national and regional newspapers and operates business information services; book publishing through a well-known global publisher; and property-related digital businesses that operate online marketplaces for real estate listings. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "News Q4 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Revenue: $2.3 billion, up 11% year-over-year. Total Segment EBITDA: $423 million, up 31% year-over-year. Net Income: $230 million, up 167% on a continuing operations basis. Reported EPS: $0.33, compared to $0.09 in the prior year. Adjusted EPS: $0.35, compared to $0.19 in the prior year. Full-Year Revenue: $9 billion, up 7%. Full-Year Total Segment EBITDA: Over $1.6 billion, up 15%. Full-Year Margin: Expanded from 16.7% to 18%. Free Cash Flow: $811 million, up 42%. Full-Year Reported EPS: $1.03, up 23%. Full-Year Adjusted EPS: $1.18, up 33%. Share Buyback: $643 million for the fiscal year, over four times the prior year's rate. Dow Jones Revenue: $644 million, up 7%. Dow Jones EBITDA: $181 million, up 20%. Digital Real Estate Revenue: $553 million, up 19%. Digital Real Estate EBITDA: $222 million, up 46%. Realtor.com Revenue: $167 million, up 13%. HarperCollins Revenue: $566 million, up 15%. HarperCollins EBITDA: $57 million, up 14%. News Media Revenue: $574 million, up 5%. News Media EBITDA: $24 million, down $4 million year-over-year. Warning! GuruFocus has detected 8 Warning Sign with NWS. Is NWS fairly valued? Test your thesis with our free DCF calculator. Release Date: August 05, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. News Corp (NASDAQ:NWS) delivered record fourth-quarter profitability, with revenue up 11% to $2.3 billion and total segment EBITDA soaring 31% to $423 million, marking 12 consecutive quarters of revenue growth and 13 of EBITDA growth. The company's strategic focus on AI partnerships is paying off, with trusted content agreements in place with OpenAI and Meta and advanced discussions with other companies, positioning News Corp (NASDAQ:NWS) as a critical player in the AI information ecosystem. Dow Jones posted strong results, with Q4 revenue up 7% to $644 million and EBITDA up 20% to $181 million, driven by robust B2B growth (Risk & Compliance up 11%) and a clear path toward its $1 billion EBITDA goal by fiscal 2030. Digital Real Estate Services showed remarkable resilience, with combined revenue up 19% to $553 million and EBITDA up 46% to $222 million, as Realtor.com achieved its seventh consecutive quarter of growth and REA saw strong listing growth in Australia. The company significantly accelerated shareholder returns, with share buybacks totaling $643 million for the fiscal year, over four times the prior year's rate, supported by a 42% increase in free cash flow to $811 million. HarperCollins delivered a strong quarter with revenue up 15% to $566 million and EBITDA up 14%, driven by a robust frontlist and strong digital growth, including a 16% increase in audiobook sales. News Corp (NASDAQ:NWS) faces ongoing legal battles and reputational risks from its aggressive 'woo and sue' approach to AI content theft, including lawsuits against Perplexity and Brave, which could be costly and distract from core operations. Dow Jones Energy revenue growth was modest at 4% due to the conflict in the Middle East impacting clients, although the pipeline for new contracts is reportedly robust. Realtor.com experienced a 6% decline in average monthly users to 68 million, reflecting broader market trends and a strategic shift toward higher-quality leads, which could limit future growth if the housing market remains weak. The company faces a particularly difficult prior-year comparison in the first quarter of fiscal 2027, which could temper reported growth rates and investor expectations. News Media segment EBITDA declined by $4 million year-over-year to $24 million, due to disciplined reinvestment in the launch of the California Post, which will continue to incur incremental costs in the near term. The housing market remains challenging, with Australian residential new buy listings declining 2% in July and rising mortgage rates in the US potentially impacting Realtor.com's recovery, creating uncertainty for the Digital Real Estate segment. Q: Robert, we've seen some reporting on publishers broadly questioning their AI licensing agreements, given the impacts from traffic. If we look at you over the last two years, you have the OpenAI agreement, you had another with Meta. So I'm curious what you've observed so far that's given you confidence that these deals aren't a negative from an engagement or traffic standpoint. A: (Robert Thomson, CEO) We obviously can't discuss the precise details of confidential AI agreements, but let me emphasize that there are significant deals in the pipeline, and these deals will be a mix of the horizontal with the large digital or AI players and deals with sector-specific verticals where our content is crucial for a new AI-based business. We are working closely with OpenAI and Meta as their products evolve, and each company has different needs. These are not merely transactional arrangements; they are partnerships. We know how to create peerless content, and these companies know how interaction with content is evolving. As for litigation, it's far from over. We're focusing not just on companies that have scraped and stolen our content, but on their clients who knowingly or unknowingly have purchased stolen goods. Q: My question sort of touches on the AI licensing deals. I appreciate that you're a little bit restricted in what you can say, but I think there's a lot of interest in the market around those deals. To the extent you can talk about this, Dow Jones and News Media, can you provide some color around the margin profile of those deals? It's particularly stark that Dow Jones EBITDA margin was up over 300 basis points in the quarter. Is there any cost associated with those deals? Is that a key contributor to the Dow Jones margins? I wonder if as part of that answer, can you confirm whether the Meta deal, which you announced in March, is now contributing to the Q4 numbers or whether it starts ramping over the course of FY27? A: (Robert Thomson, CEO) Obviously, I can't go into detail regarding confidential deals. These deals are important. There are more deals on the way. The Meta deal is now part of the business, not just at Dow Jones, but also for News Media, as you'll see over successive quarters. It's a tribute to OpenAI and Meta that they have taken a principled approach in valuing our important component, our IP. It's also true that there are more deals to come, because essentially, those two companies have established benchmarks that other principled companies should follow. (Lavanya Chandrashekar, CFO) The Dow Jones business generates very healthy margins, and especially on the B2B side of the business, that's where we have our strongest margins. As the mix of B2B increases, that's a driver of margins. The team at Dow Jones have been extraordinarily disciplined in terms of how they've managed their costs. In the quarter, costs were up only 2%. On a full year basis, it tends to be closer to around 4%-5%, but it is that very disciplined reinvestment and cost management that also helps to contribute to margin growth. Q: On simplifying the company, Robert, is there any additional thoughts you can give us there? These are obviously very strong numbers you guys posted here, but investors over the many years here have been just frustrated, as you know, with the complexity of the company. Has anything changed in your mind, in your board of directors' mind here in the last six plus months, we might see some further simplifying of the company? A: (Robert Thomson, CEO) As you're well aware, we certainly have been simplifying with the sale of Foxtel, among other things, News America Marketing, and included is a lot of focus at different times, for example, on Realtor. I would like to focus, in fact, on the emerging success of Realtor, where revenues rose 13%, marking the seventh consecutive quarter of growth and the third consecutive quarter of double-digit growth, despite a real estate market that's definitely in the doldrums. Every time the mortgage rate dips, even marginally, there's a surge in property activity. We're poised to prosper when rates eventually do decline, even marginally. We're also poised to see a significant change in valuation when the US market returns to near normalcy. We do have obvious optionality when it comes to structure, but optionality means maximizing moments and maximizing value for our investors. Q: My question is with free cash flow ending on such a strong note, as you look into FY27, can you help us think about where you're prioritizing incremental CapEx spend across the portfolio, please? A: (Lavanya Chandrashekar, CFO) Just want to reiterate how pleased we are with the 42% increase in free cash flow for the year up to $811 million. What drove it was really a combination of EBITDA growth, obviously, which has been very strong, as well as working capital improvements. We've seen those improvements on inventories and on days payable. We've only had a very modest increase in CapEx for the year, which was just about $19 million, and that went towards supporting both investments in technology, but also investments in upgrading our supply chain logistics for the Harper business, which is posting great growth and which will come with its own efficiencies. Looking forward into fiscal 2027, I would just say that free cash flow improvement remains a key focus for us, and we do expect it to be a source of value expansion. Q: A lot of great growth here. I was wondering about the book publishing side of things. What would you attribute such strong physical and digital growth towards? Obviously, you do have some new titles coming out. Is there some secular trend that helps to explain it? I was wondering what sort of data on usage that you're getting from your digital partners. A: (Robert Thomson, CEO) I think the enduring trend is that we have a talented team at HarperCollins who are excellent at spotting new authors and in cultivating them, and ensuring that the products that are produced and published are of the highest quality and the highest originality. As you've seen, we've experienced particularly rapid audiobook growth in recent years, our partnership with Spotify is leading to an expansion of premium audio, which including to family members. That itself has prompted Audible to bring much more experimentation to audiobooks. It's fair to say, by the way, that AI will certainly provide a role in helping bring books to life through the use of vivid voices and the ability to generate a compelling audio experience that makes the IP that much more valuable. For Q4, overall digital revenues rose 12%, and audiobooks expanded 16%. When you think about it, AI can really transform audiobooks as there'll be so much more choice in the voices, the sound effects, and other techniques and tools that will bring words to life. Don't forget how For the complete transcript of the earnings call, please refer to the full earnings call transcript.

FISCAL 2026 FOURTH QUARTER AND FULL YEAR KEY FINANCIAL HIGHLIGHTS Fourth quarter revenues were $2.34 billion, an 11% increase compared to $2.11 billion in the prior year, driven by growth at the Digital Real Estate Services, Book Publishing and Dow Jones segments, while net income from continuing operations in the quarter was $230 million, a 167% increase compared to $86 million in the prior year. Fourth quarter Total Segment EBITDA was $423 million, a 31% increase compared to $322 million in the prior year. Fourth quarter reported EPS from continuing operations were $0.33 as compared to $0.09 in the prior year - Adjusted EPS were $0.35 as compared to $0.19 in the prior year. For fiscal 2026, revenues rose 7% to $9.03 billion, net income from continuing operations increased 15% to $743 million and Total Segment EBITDA was up 15% to $1.63 billion, leading to higher operating cash flow, which increased by 26% to $1.24 billion. Full year free cash flow of $811 million was 42% higher than the prior year, driven by exceptional fourth quarter results coupled with working capital improvements. Dow Jones revenues for the fourth quarter rose 7% leading to robust 20% Segment EBITDA growth, benefiting from higher content licensing and digital circulation revenues, an 11% increase in Dow Jones Risk & Compliance revenues and a 10% increase in digital advertising revenues. REA Group revenues for the fourth quarter rose 21%, driven by strong Australian residential performance, led by double-digit growth in yield and listing volumes, and positive foreign exchange impacts. Move, operator of Realtor.com®, grew fourth quarter revenue by 13% driven by strong demand for premium offerings, continued product innovation and audience share gains. Book Publishing delivered 15% revenue growth for the quarter, supported by a strong frontlist, higher backlist sales and accelerated growth in digital revenues. NEW YORK, August 05, 2026--(BUSINESS WIRE)--News Corporation ("News Corp" or the "Company") (Nasdaq: NWS, NWSA; ASX: NWS, NWSLV) today reported financial results for the three months and fiscal year ended June 30, 2026. Commenting on the results, Chief Executive Robert Thomson said: "We concluded Fiscal 2026 with an exceptional fourth quarter performance, including an 11% increase in revenues to $2.34 billion and the highest profitability on record. Fourth quarter net income from continuing operations soared 167% to $230 million, while our earnings per share were $0.33, up from $0.09 in the prior year, and our adjusted EPS were $0.35, compared to $0.19 last year. Our core growth engines—Digital Real Estate Services, Dow Jones and Book Publishing—fueled a 31% surge in fourth quarter Total Segment EBITDA to $423 million. On a full year basis, News Corp reported another year of record revenue and profitability on a continuing operations basis, with growth accelerating to 7% and 15%, respectively, while operating cash flow grew 26% to $1.24 billion. As a result, free cash flow increased significantly, rising 42% to $811 million. Our enhanced cash position enabled us to aggressively return capital to shareholders, with the buyback accelerating to well over four times the prior year’s rate at $643 million. Our record performance is a product of sustained focus on, and reinvestment in, News Corp’s core growth engines and our transformation to a digital-first company underpinned by insightful and trusted content. Much of the world is being reshaped by artificial intelligence, but artificial intelligence itself is only as useful and only as trustworthy as the quality of its inputs. We believe that makes News Corp an absolutely critical participant in the emerging AI ecosystem. Without our journalists, our authors, our data, our brands and our professional expertise, users would be drowning in a slimy sea of AI slop. We have trusted content relationships with OpenAI and Meta, and are in advanced discussions with several other companies. However, under our woo and sue approach, we are taking aggressive action against those who pilfer and profit from our work. We will pursue those pilferers, and companies that are clients of these crass kleptomaniacs should know they are patently in possession of stolen goods." FOURTH QUARTER RESULTS The Company reported fiscal 2026 fourth quarter total revenues of $2.34 billion, an 11% increase compared to $2.11 billion in the prior year period, primarily driven by higher real estate revenues at Digital Real Estate Services, higher print and digital sales at Book Publishing and higher circulation and subscription revenues at Dow Jones. Results included a $71 million, or 4%, positive impact from foreign currency fluctuations. Adjusted Revenues (which excludes the foreign currency impact, acquisitions and divestitures as defined in Note 2) increased 7% compared to the prior year. Net income from continuing operations for the quarter was $230 million, a 167% increase compared to $86 million in the prior year, primarily driven by higher Total Segment EBITDA, as discussed below, and lower impairment and restructuring charges. The Company reported fourth quarter Total Segment EBITDA of $423 million, a 31% increase compared to $322 million in the prior year, primarily driven by the strong revenue growth as discussed above. Adjusted Total Segment EBITDA (as defined in Note 2) increased 25%. Net income from continuing operations per share attributable to News Corporation stockholders was $0.33 as compared to $0.09 in the prior year. Adjusted EPS (as defined in Note 3) were $0.35 compared to $0.19 in the prior year. FULL YEAR RESULTS The Company reported fiscal 2026 full year total revenues of $9.03 billion, a 7% increase compared to $8.45 billion in the prior year. The increase was driven by higher revenues at the Digital Real Estate Services, Dow Jones and Book Publishing segments, the Company’s core growth engines, and a $189 million, or 2%, positive impact from foreign currency fluctuations. Adjusted Revenues increased 4%. Net income from continuing operations for the full year was $743 million, a 15% increase compared to $648 million in the prior year. The increase reflects higher Total Segment EBITDA, as discussed below, and higher interest income, partially offset by lower Other, net driven by the gain on the sale of REA Group’s investment in PropertyGuru in the prior year. Total Segment EBITDA for the full year was $1.63 billion, a 15% increase compared to $1.42 billion in the prior year primarily driven by strong contributions from the Digital Real Estate Services and Dow Jones segments, primarily as a result of higher revenues, as discussed above, and lower employee costs in the Other segment. Adjusted Total Segment EBITDA increased 12%. Diluted net income from continuing operations per share attributable to News Corporation stockholders was $1.03 as compared to $0.84 in the prior year. Adjusted diluted EPS were $1.18 compared to $0.89 in the prior year. SEGMENT REVIEW Dow Jones Fourth Quarter Segment Results Revenues in the quarter increased $40 million, or 7%, compared to the prior year, driven by higher circulation and subscription revenues and higher digital advertising revenues. Results included a $2 million, or 1%, positive impact from foreign currency fluctuations. Digital revenues at Dow Jones in the quarter represented 84% of total revenues compared to 83% in the prior year. Adjusted Revenues increased 6%. Circulation and subscription revenues increased $35 million, or 7%, reflecting higher content licensing revenue, a 5% increase in professional information business revenues, led by 11% growth in Dow Jones Risk & Compliance revenues to $102 million and 4% growth in Dow Jones Energy revenues to $76 million, and higher digital circulation revenues. Circulation revenues increased 3% compared to the prior year driven by the conversion of customers from introductory promotions to higher pricing and continued growth in digital-only subscriptions, partly offset by lower print volume. Digital circulation revenues accounted for 76% of circulation revenues for the quarter, compared to 75% in the prior year. During the fourth quarter, total average subscriptions to Dow Jones’ news products were over 6.7 million, a 7% increase compared to the prior year. Digital-only subscriptions to Dow Jones’ news products grew 9% to nearly 6.3 million. Total subscriptions to The Wall Street Journal grew 6% compared to the prior year, to 4.8 million average subscriptions in the quarter. Digital-only subscriptions to The Wall Street Journal grew 8% to nearly 4.5 million average subscriptions in the quarter, driven by growth in enterprise news subscriptions, and represented 93% of total Wall Street Journal subscriptions. Advertising revenues for the quarter increased $5 million, or 5%, driven by digital advertising revenues, which grew 10%, partially offset by a 6% decrease in print advertising revenues. Digital advertising accounted for 69% of total advertising revenues for the quarter, compared to 65% in the prior year. Segment EBITDA for the quarter increased $30 million, or 20%, primarily as a result of the higher revenues discussed above, partially offset by increases in employee and technology costs. Adjusted Segment EBITDA increased 20%. Full Year Segment Results Fiscal 2026 full year revenues increased $166 million, or 7%, compared to the prior year driven by higher circulation and subscription and advertising revenues and a $17 million, or 1%, positive impact from foreign currency fluctuations. Digital revenues at Dow Jones represented 84% of total revenues compared to 82% in the prior year. Adjusted Revenues increased 6% compared to the prior year. Circulation and subscription revenues increased $136 million, or 7%, reflecting a 9% increase in professional information business revenues, led by 16% growth in Dow Jones Risk & Compliance revenues to $392 million and 8% growth in Dow Jones Energy revenues to $301 million, higher digital circulation revenues and higher content licensing revenues. Circulation revenues increased 3% compared to the prior year, reflecting the conversion of customers from introductory promotions to higher pricing and continued growth in digital-only subscriptions, driven by growth in enterprise news subscriptions, partly offset by lower print volume. Digital circulation revenues accounted for 76% of circulation revenues for the year, compared to 74% in the prior year. Advertising revenue increased $22 million, or 6%, due to a 9% increase in digital advertising revenues. Digital advertising revenues accounted for 67% of total advertising revenues for the year, compared to 65% in the prior year. Segment EBITDA for fiscal 2026 increased $75 million, or 13%, compared to the prior year, primarily due to higher revenues, as noted above, partially offset by higher employee and marketing costs. Adjusted Segment EBITDA increased 13%. Digital Real Estate Services Fourth Quarter Segment Results Revenues in the quarter increased $87 million, or 19%, compared to the prior year, driven by higher revenues at both REA Group and Move. Segment EBITDA in the quarter increased $70 million, or 46%, compared to the prior year, due to higher contribution from both REA Group and Move. Adjusted Revenues and Adjusted Segment EBITDA increased 10% and 33%, respectively. In the quarter, revenues at REA Group increased $68 million, or 21%, to $386 million, driven by higher Australian residential revenues due to price increases and growth in add-on products and a $38 million, or 12%, positive impact from foreign currency fluctuations, partially offset by unfavorable geographical mix. Australian national residential buy listing volumes in the quarter rose 11% compared to the prior year, with listings in Sydney and Melbourne each up 8%. REA India has announced the sale of its remaining business, Housing.com, to listed Aurum Proptech Limited. Move’s revenues in the quarter increased $19 million, or 13%, to $167 million, primarily as a result of higher sales of RealPRO SelectSM, as Move continues to shift its focus to more premium offerings with higher revenues per lead, and revenue growth in seller, new homes and rentals. Based on Move’s internal data, average monthly unique users of Realtor.com®’s web and mobile sites for the fiscal fourth quarter were 68 million, a 6% decrease compared to the prior year driven primarily by broader macroeconomic trends and a focus on higher quality leads, with volumes increasing 1% compared to the prior year period. According to Comscore, monthly average visits for the fourth quarter for Realtor.com® were 297 million, increasing its share to 33% of total visits to all U.S. real estate portals, and leading the industry in engagement, as measured by visits per unique user. Full Year Segment Results Fiscal 2026 full year revenues increased $214 million, or 12%, compared to the prior year, driven by higher revenues at both REA Group and Move including a $63 million, or 4%, positive impact from foreign currency fluctuations. Segment EBITDA for fiscal 2026 increased $140 million, or 23%, compared to the prior year, including a $32 million, or 5%, positive impact from foreign currency fluctuations, driven by higher revenues and the absence of $12 million of costs related to the withdrawn offer to acquire Rightmove in the prior year, partly offset by higher employee costs primarily at Move, higher broker commissions and higher marketing costs. Adjusted Revenues and Adjusted Segment EBITDA increased 8% and 19%, respectively. In the fiscal year, REA Group’s revenues increased $156 million, or 12%, to $1.41 billion, including a $63 million, or 5%, positive impact from foreign currency fluctuations, primarily due to higher Australian residential revenues driven by price increases and growth in add on products and higher financial services revenue, partly offset by a decline in revenues from REA India. Move’s revenues in the fiscal year increased $58 million, or 11%, to $610 million, primarily as a result of higher sales of RealPRO SelectSM, as Move shifts its focus to more premium offerings, and revenue growth in seller, new homes and rentals. Book Publishing Fourth Quarter Segment Results Revenues in the quarter increased $72 million, or 15%, compared to the prior year, driven by higher physical and digital book sales, which included strength in General Books, the U.K. and Children’s Publishing. The increase included a $3 million, or 1%, positive impact from foreign currency fluctuations. Adjusted Revenues increased 13%. Digital sales increased 12% compared to the prior year driven by an increase in audiobook and e-book sales. Digital sales represented 24% of consumer revenues for the quarter compared to 25% for the prior year period. Backlist sales represented approximately 60% of consumer revenues in the quarter compared to 65% in the prior year, driven by the robust frontlist slate. Segment EBITDA for the quarter increased $7 million, or 14%, compared to the prior year, due to the higher revenues discussed above, partially offset by higher costs due to higher sales volume and mix of titles. Adjusted Segment EBITDA increased 12%. Full Year Segment Results Fiscal 2026 full year revenues increased $139 million, or 6%, compared to the prior year, which includes a $31 million impact from recent acquisitions, primarily due to higher physical and digital book sales, including strong performance from Rachel Reid’s Game Changers titles and strength in Christian Publishing, and a $28 million, or 1%, positive impact from foreign currency fluctuations. Adjusted Revenues increased 4% compared to the prior year. Digital sales increased 4% compared to the prior year, representing 23% of consumer revenues for the year compared to 24% in the prior year. Backlist sales represented approximately 62% of consumer revenues for the year compared to 64% in the prior year. Segment EBITDA for fiscal 2026 decreased $9 million, or 3%, from the prior year driven by higher costs due to higher sales volume, higher employee costs, a $16 million one-time write-off in the second quarter of fiscal 2026 primarily related to inventory at HarperCollins’ international operations and a $13 million write-off of a customer receivable related to the closure of a book distributor, partially offset by the higher revenues discussed above. Adjusted Segment EBITDA decreased 4%. News Media Fourth Quarter Segment Results Revenues in the quarter increased $29 million, or 5%, compared to the prior year, primarily due to a $28 million, or 5%, positive impact from foreign currency fluctuations. Adjusted Revenues for the segment were flat compared to the prior year. Circulation and subscription revenues increased $19 million, or 7%, compared to the prior year, due to a $13 million, or 5%, positive impact from foreign currency fluctuations, increased cover and subscription pricing and higher content licensing revenues, partially offset by print volume declines. Advertising revenues decreased $1 million, compared to the prior year, primarily due to lower print advertising revenues, mostly offset by a $9 million, or 5%, positive impact from foreign currency fluctuations. Results also included a benefit at News Broadcasting related to the FIFA World Cup. In the quarter, Segment EBITDA decreased $4 million, or 14%, compared to the prior year, driven by higher costs at News Broadcasting including for the FIFA World Cup and costs related to the recently launched California Post, partially offset by lower Talk costs. Adjusted Segment EBITDA decreased 18%. Digital revenues represented 41% of News Media segment revenues in the quarter, compared to 38% in the prior year, and represented 39% of the combined revenues of the newspaper mastheads. Digital subscribers and users across key properties within the News Media segment are summarized below: Closing digital subscribers at News Corp Australia as of June 30, 2026 were 1,162,000 (981,000 for news mastheads), compared to 1,166,000 (993,000 for news mastheads) in the prior year (Source: Internal data). The Times and Sunday Times closing digital subscribers, including the Times Literary Supplement, as of June 30, 2026 were 681,000, compared to 640,000 in the prior year (Source: Internal data). The Sun’s digital offering reached 65 million global monthly unique users in June 2026, compared to 87 million in the prior year (Source: Meta Pixel). New York Post’s digital network reached 77 million unique users in June 2026, compared to 90 million in the prior year (Source: Google Analytics). Full Year Segment Results Fiscal 2026 full year revenues increased $57 million, or 3%, compared to the prior year, primarily driven by an $81 million, or 4%, positive impact from foreign currency fluctuations. Adjusted Revenues for the segment decreased 1% compared to the prior year. Circulation and subscription revenues increased $57 million, or 5%, compared to the prior year, primarily due to a $43 million, or 4%, positive impact from foreign currency fluctuations, increased cover pricing, higher content licensing revenues and digital subscriber growth in the U.K., partially offset by print volume declines. Advertising revenues decreased $16 million, or 2%, compared to the prior year, primarily due to lower print advertising revenues, partially offset by a $28 million, or 3% positive impact from foreign currency fluctuations. Segment EBITDA for fiscal 2026 decreased $14 million, or 9%, compared to the prior year, primarily driven by costs related to the recently launched California Post and higher costs at News Broadcasting including for the FIFA World Cup, partially offset by lower Talk costs. Adjusted Segment EBITDA decreased 14% compared to the prior year. CASH FLOW The following table presents a reconciliation of net cash provided by operating activities from continuing operations to free cash flow: Net cash provided by operating activities from continuing operations of $1,237 million for the fiscal year ended June 30, 2026 was $259 million higher than net cash provided by operating activities from continuing operations of $978 million in the prior year, primarily due to higher Total Segment EBITDA and working capital improvements, partially offset by higher cash tax and restructuring payments. Free cash flow in the fiscal year ended June 30, 2026 was $811 million compared to $571 million in the prior year. The increase in free cash flow was primarily due to higher cash provided by operating activities from continuing operations, as discussed above, partially offset by the $19 million increase in capital expenditures. Free cash flow is a non-GAAP financial measure. Free cash flow is defined as net cash provided by (used in) operating activities from continuing operations, less capital expenditures. Free cash flow excludes cash flows from discontinued operations. Free cash flow may not be comparable to similarly titled measures reported by other companies, since companies and investors may differ as to what items should be included in the calculation of free cash flow. Free cash flow does not represent the total increase or decrease in the cash balance for the period and should be considered in addition to, not as a substitute for, the net change in cash and cash equivalents as presented in the Company’s consolidated statements of cash flows prepared in accordance with GAAP, which incorporates all cash movements during the period. The Company believes free cash flow provides useful information to management and investors about the Company’s liquidity and cash flow trends. OTHER ITEMS Dividends The Company declared today a semi-annual cash dividend of $0.10 per share for Class A Common Stock and Class B Common Stock. This dividend is payable on October 7, 2026 to stockholders of record as of September 9, 2026. COMPARISON OF NON-GAAP TO U.S. GAAP INFORMATION Adjusted Revenues, Total Segment EBITDA, Adjusted Total Segment EBITDA, Adjusted Segment EBITDA, adjusted net income attributable to News Corporation stockholders, Adjusted EPS, constant currency revenues and free cash flow are non-GAAP financial measures contained in this earnings release. The Company believes these measures are important tools for investors and analysts to use in assessing the Company’s underlying business performance and to provide for more meaningful comparisons of the Company’s operating performance between periods. These measures also allow investors and analysts to view the Company’s business from the same perspective as Company management. These non-GAAP measures may be different than similar measures used by other companies and should be considered in addition to, not as a substitute for, measures of financial performance calculated in accordance with GAAP. Reconciliations for the differences between non-GAAP measures used in this earnings release and comparable financial measures calculated in accordance with U.S. GAAP are included in Notes 1, 2, 3 and 4 and the reconciliation of net cash provided by operating activities from continuing operations to free cash flow is included above. Conference call News Corporation’s earnings conference call can be heard live at 5:00 p.m. EDT on August 5, 2026. To listen to the call, please visit http://investors.newscorp.com. Cautionary Statement Concerning Forward-Looking Statements This document contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding trends and uncertainties affecting the Company’s business, results of operations and financial condition, the Company’s strategy and strategic initiatives, including potential acquisitions, investments and dispositions, the Company’s cost savings initiatives and the outcome of contingencies such as litigation and investigations. These statements are based on management’s views and assumptions regarding future events and business performance as of the time the statements are made. Actual results may differ materially from these expectations due to the risks, uncertainties and other factors described in the Company’s filings with the Securities and Exchange Commission. More detailed information about factors that could affect future results is contained in our filings with the Securities and Exchange Commission. The "forward-looking statements" included in this document are made only as of the date of this document and we do not have and do not undertake any obligation to publicly update any "forward-looking statements" to reflect subsequent events or circumstances, and we expressly disclaim any such obligation, except as required by law or regulation. About News Corporation News Corp (Nasdaq: NWS, NWSA; ASX: NWS, NWSLV) is a global, diversified media and information services company focused on creating and distributing authoritative and engaging content and other products and services. The company comprises businesses across a range of media, including: information services and news, digital real estate services and book publishing. Headquartered in New York, News Corp operates primarily in the United States, Australia, and the United Kingdom, and its content and other products and services are distributed and consumed worldwide. More information is available at: www.newscorp.com. NEWS CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited; in millions, except per share amounts) NEWS CORPORATION CONSOLIDATED BALANCE SHEETS(Unaudited; in millions) NEWS CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited; in millions) NOTE 1 – TOTAL SEGMENT EBITDA Segment EBITDA is defined as revenues less operating expenses and selling, general and administrative expenses. Segment EBITDA does not include: depreciation and amortization, impairment and restructuring charges, equity losses of affiliates, interest (expense) income, net, other, net, income tax (expense) benefit and net income (loss) from discontinued operations, net of tax. Management believes that Segment EBITDA is an appropriate measure for evaluating the operating performance of the Company’s business segments because it is the primary measure used by the Company’s chief operating decision maker to evaluate the performance of and allocate resources within the Company’s businesses. Segment EBITDA provides management, investors and equity analysts with a measure to analyze the operating performance of each of the Company’s business segments and its enterprise value against historical data and competitors’ data, although historical results may not be indicative of future results (as operating performance is highly contingent on many factors, including customer tastes and preferences). Total Segment EBITDA is a non-GAAP measure and should be considered in addition to, not as a substitute for, net income (loss) from continuing operations, cash flow from continuing operations and other measures of financial performance reported in accordance with GAAP. In addition, this measure does not reflect cash available to fund requirements and excludes items, such as depreciation and amortization and impairment and restructuring charges, which are significant components in assessing the Company’s financial performance. The Company believes that the presentation of Total Segment EBITDA provides useful information regarding the Company’s operations and other factors that affect the Company’s reported results. Specifically, the Company believes that by excluding certain one-time or non-cash items such as impairment and restructuring charges and depreciation and amortization, as well as potential distortions between periods caused by factors such as financing and capital structures and changes in tax positions or regimes, the Company provides users of its consolidated financial statements with insight into both its core operations as well as the factors that affect reported results between periods but which the Company believes are not representative of its core business. As a result, users of the Company’s consolidated financial statements are better able to evaluate changes in the core operating results of the Company across different periods. The following tables reconcile net income from continuing operations to Total Segment EBITDA for the three months and fiscal years ended June 30, 2026 and 2025: ** Not meaningful NOTE 2 – ADJUSTED REVENUES, ADJUSTED TOTAL SEGMENT EBITDA AND ADJUSTED SEGMENT EBITDA The Company uses revenues, Total Segment EBITDA and Segment EBITDA excluding the impact of acquisitions, divestitures, fees and costs, net of indemnification, related to the claims and investigations arising out of certain conduct at The News of the World (the "U.K. Newspaper Matters"), charges for other significant, non-ordinary course legal or regulatory matters ("litigation charges") and foreign currency fluctuations ("Adjusted Revenues," "Adjusted Total Segment EBITDA" and "Adjusted Segment EBITDA," respectively) to evaluate the performance of the Company’s core business operations exclusive of certain items that impact the comparability of results from period to period such as the unpredictability and volatility of currency fluctuations. The Company calculates the impact of foreign currency fluctuations for businesses reporting in currencies other than the U.S. dollar by multiplying the results for each quarter in the current period by the difference between the average exchange rate for that quarter and the average exchange rate in effect during the corresponding quarter of the prior year and totaling the impact for all quarters in the current period. The calculation of Adjusted Revenues, Adjusted Total Segment EBITDA and Adjusted Segment EBITDA may not be comparable to similarly titled measures reported by other companies, since companies and investors may differ as to what type of events warrant adjustment. Adjusted Revenues, Adjusted Total Segment EBITDA and Adjusted Segment EBITDA are not measures of performance under generally accepted accounting principles and should not be construed as substitutes for amounts determined under GAAP as measures of performance. However, management uses these measures in comparing the Company’s historical performance and believes that they provide meaningful and comparable information to investors to assist in their analysis of our performance relative to prior periods and our competitors. The following tables reconcile reported revenues and reported Total Segment EBITDA to Adjusted Revenues and Adjusted Total Segment EBITDA for the three months and fiscal years ended June 30, 2026 and 2025: Foreign Exchange Rates Average foreign exchange rates used in the calculation of the impact of foreign currency fluctuations for the three months and fiscal years ended June 30, 2026 and 2025 are as follows: Adjusted Revenues and Adjusted Segment EBITDA by segment for the three months and fiscal years ended June 30, 2026 and 2025 are as follows: The following tables reconcile reported revenues and Segment EBITDA by segment to Adjusted Revenues and Adjusted Segment EBITDA by segment for the three months and fiscal years ended June 30, 2026 and 2025: NOTE 3 – ADJUSTED NET INCOME (LOSS) ATTRIBUTABLE TO NEWS CORPORATION STOCKHOLDERS AND ADJUSTED EPS The Company uses net income (loss) attributable to News Corporation stockholders from continuing operations and diluted earnings per share from continuing operations ("EPS") excluding expenses related to U.K. Newspaper Matters, litigation charges, impairment and restructuring charges and "Other, net", net of tax, recognized by the Company or its equity method investees, as well as the settlement of certain pre-Separation tax matters ("adjusted net income (loss) attributable to News Corporation stockholders" and "adjusted EPS," respectively), to evaluate the performance of the Company’s operations exclusive of certain items that impact the comparability of results from period to period, as well as certain non-operational items. The calculation of adjusted net income (loss) attributable to News Corporation stockholders and adjusted EPS may not be comparable to similarly titled measures reported by other companies, since companies and investors may differ as to what type of events warrant adjustment. Adjusted net income (loss) attributable to News Corporation stockholders and adjusted EPS are not measures of performance under generally accepted accounting principles and should not be construed as substitutes for consolidated net income (loss) attributable to News Corporation stockholders from continuing operations and net income (loss) per share from continuing operations as determined under GAAP as a measure of performance. However, management uses these measures in comparing the Company’s historical performance and believes that they provide meaningful and comparable information to investors to assist in their analysis of our performance relative to prior periods and our competitors. The following tables reconcile reported net income attributable to News Corporation stockholders from continuing operations and reported diluted EPS to adjusted net income attributable to News Corporation stockholders and adjusted EPS for the three months and fiscal years ended June 30, 2026 and 2025: NOTE 4 – CONSTANT CURRENCY REVENUES The Company believes that the presentation of revenues excluding the impact of foreign currency fluctuations ("constant currency revenues") provides useful information regarding the performance of the Company’s core business operations exclusive of distortions between periods caused by the unpredictability and volatility of currency fluctuations. The Company calculates the impact of foreign currency fluctuations for businesses reporting in currencies other than the U.S. dollar as described in Note 2. Constant currency revenues are not measures of performance under generally accepted accounting principles and should not be construed as substitutes for revenues as determined under GAAP as measures of performance. However, management uses these measures in comparing the Company’s historical performance and believes that they provide meaningful and comparable information to investors to assist in their analysis of our performance relative to prior periods and our competitors. The following tables reconcile reported revenues to constant currency revenues for the three months and fiscal years ended June 30, 2026: View source version on businesswire.com: https://www.businesswire.com/news/home/20260805848469/en/ Contacts Investor Relations Michael [email protected] Corporate Communications Arthur [email protected]

Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St's investing ideas for FREE. News stock sits at an interesting valuation crossroads, with the Discounted Cash Flow (DCF) intrinsic value estimate pointing to a sizeable gap versus the current share price. Traditional market multiples lean the other way and suggest the stock is not cheap. That split, combined with mixed overall valuation checks, gives investors a contrasting picture of what the recent share price level really implies. Over the past 3 years, News has returned 49.8%, which puts recent valuation questions in the context of a stock that has already delivered solid gains for long term holders. Expectations around News' ability to convert its media assets into steady cash flow can support the intrinsic value case, while any pressure on margins or higher capital needs may weigh heavily if those cash flows arrive slower than investors expect. News scores 3 of 6 on the broader valuation checks, a mixed picture rather than a clear bargain or clear overvaluation, and you can see the detailed breakdown at 3/6. The issue now is whether News' current price reflects a genuine discount to intrinsic value or simply a stock that already prices in much of its recent progress. News delivered -2.2% returns over the last year. See how this stacks up to the rest of the Media industry. The Discounted Cash Flow (DCF) approach estimates what News is worth today based on the cash it is expected to generate in the future. For the latest twelve months, News produced free cash flow of about $591 million, and the 2 Stage Free Cash Flow to Equity model uses a growing cash flow profile to value the stock. On this basis, the intrinsic value is calculated at around $53 per share. Compared with the current market price, that projection implies the stock trades at a 46.9% discount to the DCF estimate. This suggests the market price and the cash flow based value are far apart. The key question for investors is whether the growth embedded in those cash flow forecasts is realistic for News, or whether the market is applying a heavier discount for execution risk and future capital needs. On balance, the DCF analysis indicates News currently appears undervalued relative to its projected cash flows. Our Discounted Cash Flow (DCF) analysis suggests News is undervalued by 46.9%. Track this in your watchlist or portfolio, or discover 45 more high quality undervalued stocks. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for News. The P/E ratio is a useful way to think about what you are paying today for News' current earnings. News currently trades on a P/E of about 34.3x, which is higher than both the Media industry average of roughly 24.5x and the peer group average of about 25.3x. The fair P/E ratio, which reflects what might be expected given News' profile within the sector, is lower at around 23.0x. The current P/E therefore stands well above this tailored benchmark, indicating that investors are paying a richer price for each dollar of earnings than both the model and the wider peer set would suggest. On this earnings multiple, News stock appears expensive relative to both its industry and the fair P/E benchmark. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives take the valuation split around News' cash flows and earnings and turn it into clear what-if stories about the future. Each narrative spells out which path for growth, margins and earnings would need to hold for News' stock to be worth materially more or less than it is today, and ties a fair value to a specific set of potential catalysts and risks on the Community page so you can see which storyline is unfolding over time. One of the top community narratives on News: 20% undervalued Read one of the top narratives on News Do you think there's more to the story for News? Head over to our Community to see what others are saying! For News, the Discounted Cash Flow (DCF) estimate points to meaningful intrinsic value upside, while the market multiple view flags the stock as overvalued on earnings. That split largely comes down to whether future cash flows arrive fast enough to justify the intrinsic value estimate, or whether the current P/E already bakes in generous growth and sentiment. With broader checks sitting in a mixed range, the key judgment for you is whether News can sustain the cash generation implied by the DCF without requiring heavier investment that would erode that apparent discount. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NWSA. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Valued at $15.6 billion by market cap, News Corporation (NWSA) is a global media and information services company with businesses spanning news publishing, digital real estate, book publishing, and subscription video services. The New York-based company owns a portfolio of well-known brands, including The Wall Street Journal, Barron's, The Times, The Sun, HarperCollins, REA Group, etc. The global media and information services leader is expected to announce its fiscal fourth-quarter earnings for 2026 in the near term. Ahead of the event, analysts expect NWSA to report a profit of $0.20 per share on a diluted basis, up 5.3% from $0.19 in the year-ago quarter. The company beat or matched the consensus estimates in each of the last four quarters, which is admirable. Alibaba Stock Just Got Apple’s Biggest AI Endorsement. This Could Be a Game Changer for BABA. Elon Musk Says If SpaceX Accomplishes Its Goals, ‘It Will Be Worth More Than The Rest of Earth’ — Though He’s Also Said ‘Money Will Stop Being Relevant’ AI Bubble Fears, Earnings and Other Can't Miss Items this Week Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. For the current year, analysts expect NWSA to report EPS of $0.92, up 3.4% from $0.89 in fiscal 2025. Its EPS is expected to rise 28.3% year over year to $1.18 in fiscal 2027. NWSA stock has underperformed the S&P 500 Index’s ($SPX) 18.4% gains over the past 52 weeks, with shares down 5.8% during this period. Similarly, it underperformed the Communication Services Select Sector SPDR ETF’s (XLC) 3.7% uptick over the same time frame. News Corp has lagged the broader market over the past year as investors remain cautious about its long-term fundamentals. Revenue has been largely flat over the past five years, free cash flow margins have remained modest, limiting capital returns and reinvestment, and returns on invested capital have shown little improvement despite ongoing investments. Analysts’ consensus opinion on NWSA stock is bullish, with a “Strong Buy” rating overall, with all nine analysts covering the stock recommending a "Strong Buy." NWSA’s average analyst price target is $35.91, indicating an ambitious potential upside of 26.3% from the current levels. On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com