Global media and publishing company News Corp (NASDAQ: NWSA) reported Q2 CY2026 results beating Wall Street’s revenue expectations, with sales up 10.8% year on year to $2.34 billion. Its non-GAAP profit of $0.35 per share was 51.2% above analysts’ consensus estimates.
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News Corp (NWSA) Q2 CY2026 Highlights:
- Revenue: $2.34 billion vs analyst estimates of $2.25 billion (10.8% year-on-year growth, 4.1% beat)
- Adjusted EPS: $0.35 vs analyst estimates of $0.23 (51.2% beat)
- Adjusted EBITDA: $400 million vs analyst estimates of $373.3 million (17.1% margin, 7.1% beat)
- Free Cash Flow Margin: 11.8%, up from 1.5% in the same quarter last year
- Market Capitalization: $16.45 billion
Company Overview
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.
Revenue Growth
A company’s long-term performance is an indicator of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Unfortunately, News Corp struggled to consistently increase demand as its $9.03 billion of sales for the trailing 12 months was close to its revenue five years ago. This wasn’t a great result and is a sign of poor business quality.
Long-term growth is the most important, but within consumer discretionary, product cycles are short and revenue can be hit-driven due to rapidly changing trends and consumer preferences. News Corp’s annualized revenue growth of 4.6% over the last two years is above its five-year trend, which is encouraging. 
We can better understand the company’s revenue dynamics by analyzing its three most important segments: Dow Jones, News Media, and Book Publishing, which are 27.4%, 24%, and 23.4% of revenue. Over the last two years, News Corp’s Dow Jones (media subsidiary) and News Media (general media) revenues averaged year-on-year growth of 6% and 2.3% while its Book Publishing revenue (general publishing) was flat. 
This quarter, News Corp reported year-on-year revenue growth of 10.8%, and its $2.34 billion of revenue exceeded Wall Street’s estimates by 4.1%.
Looking ahead, sell-side analysts expect revenue to grow 3.6% over the next 12 months, similar to its two-year rate. This projection doesn’t excite us and suggests its products and services will see some demand headwinds.
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Operating Margin
Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses — everything from the cost of goods sold to advertising and wages. It’s also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes.
in line with the same quarter last year. This indicates the company’s overall cost structure has been relatively stable.
Earnings Per Share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
News Corp’s EPS grew at 12% compounded annual growth rate over the last five years. This performance was better than its flat revenue but doesn’t tell us much about its business quality because its operating margin didn’t improve.
In Q2, News Corp reported adjusted EPS of $0.35, up from $0.19 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects News Corp’s full-year EPS to grow 7.9% from $1.18 to $1.27.
Key Takeaways from News Corp’s Q2 Results
It was good to see News Corp beat analysts’ EPS expectations this quarter. We were also glad its revenue outperformed Wall Street’s estimates. Zooming out, we think this was a good print with some key areas of upside. The market seemed to be hoping for more, and the stock traded down 4.4% to $27.80 immediately after reporting.
So do we think News Corp is an attractive buy at the current price? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
