News Corp Earnings Overview
News Corporation has released its earnings report for the fourth quarter and fiscal year ending June 30, 2025, showcasing robust growth driven by gains in key segments like Digital Real Estate Services, Dow Jones, and Book Publishing. The company also announced a significant expansion in its stock repurchase program, reflecting confidence in its financial health and future prospects.
News Corp Results
Here's a detailed look at News Corp's financial results:
Fiscal 2025 Overview
| Financial Metric | FY 2025 | FY 2024 | Year-Over-Year Change |
|---|---|---|---|
| Total Revenue | $8.45 billion | $8.25 billion | +2% |
| Net Income from Continuing Ops. | $648 million | $379 million | +71% |
| Total Segment EBITDA | $1.42 billion | $1.24 billion | +14% |
| Reported Diluted EPS | $0.84 | $0.47 | +79% |
| Adjusted Diluted EPS | $0.89 | $0.74 | +20% |
Fourth Quarter Overview
| Financial Metric | Q4 2025 | Q4 2024 | Quarter-Over-Quarter Change |
|---|---|---|---|
| Total Revenue | $2.11 billion | $2.09 billion | +1% |
| Net Income from Continuing Ops. | $86 million | $67 million | +28% |
| Total Segment EBITDA | $322 million | $308 million | +5% |
| Reported EPS | $0.09 | $0.08 | +13% |
| Adjusted EPS | $0.19 | $0.20 | -5% |
Revenue Breakdown by Segment
Here's a closer examination of the performance across News Corp's major segments:
Revenue Performance
| Segment | Q4 2025 Revenue | Q4 2024 Revenue | Change |
|---|---|---|---|
| Dow Jones | $2.33 billion | $2.21 billion | +7% |
| REA Group | $1.25 billion | $1.12 billion | +12% |
| Book Publishing | $710 million | $690 million | +3% |
| News Media | $920 million | $960 million | -4% |
In-Depth Segment Analysis
-
Dow Jones : Dow Jones recorded record annual revenues, driven by a 15% increase in Risk & Compliance revenues and a notable increase in digital circulation. The segment's digital revenue now constitutes 83% of its total, signaling a successful digital transition.
-
REA Group : The digital real estate segment saw a 12% revenue increase mainly due to strong performance in Australian residential listings despite a challenging housing market environment. The strategic partnership with Zillow continues to pay off, contributing to revenue growth in seller and rental services.
-
Book Publishing : The segment had steady growth due to increased digital book sales, particularly audiobooks, along with improved returns in the U.S. The acquisition of a German book publisher and a favorable exchange rate impact also played a part in revenue growth.
-
News Media : Revenue declined by 4%, mainly due to the transfer function to News UK's joint venture, reduced advertising revenues, and a dip in print sales. Despite the decrease in revenues, cost-saving initiatives helped improve profit margins.
Key Developments
News Corp expanded its stock buyback program by authorizing an additional $1 billion in repurchases, highlighting its strong financial footing and commitment to enhancing shareholder value. The increased pace of buybacks underscores the company’s confidence in its future growth prospects.
Comments from Company Officers
Robert Thomson, Chief Executive of News Corp, expressed optimism by highlighting the company’s robust performance and improved financial position. He warned about the risks to intellectual property posed by AI, emphasizing that traditional IP rights must be preserved to safeguard American ingenuity.
Dividends and Share Repurchases
In addition to the expanded stock buyback program, News Corp declared a semi-annual cash dividend of $0.10 per share for Class A and Class B stockholders. The dividend is scheduled to be paid on October 8, 2025, to shareholders of record as of September 10, 2025.
News Corp Stock Forecast
Given the robust financial performance, strategic expansion in key segments, and a strong stock repurchase program, News Corp’s stock is expected to show promise. Using a fundamental analysis approach, a potential high target for the stock could be approximately $28, driven by future revenue growth and cost efficiencies, while a low projection could rest around $22, considering market fluctuations and sector-specific challenges. The stock’s movement will be influenced by factors such as the continued success of digital transitions, market conditions in the real estate sector, and global economic factors that might affect consumer confidence and advertising spend.
By navigating these challenges and opportunities with strategic foresight, News Corp is well-positioned to continue delivering for its investors and stakeholders. The company's focus on digital growth, share repurchase, and dividends underline its commitment to maintaining value for its shareholders as it embraces future challenges in the media landscape.
