News Corp’s third quarter results met Wall Street’s expectations for both revenue and profit, with modest year-over-year growth driven by strong performances in Dow Jones and Digital Real Estate Services. Management attributed these gains to increasing demand for digital subscriptions, data analytics, and the early stages of a U.S. real estate market recovery. CEO Robert Thomson noted that “Dow Jones and Digital Real Estate Services accounted for a record share of profits,” while also highlighting the impact of a $13 million write-off in Book Publishing related to a distributor closure.
Is now the time to buy NWSA? Find out in our full research report (it’s free for active Edge members).
News Corp (NWSA) Q3 CY2025 Highlights:
- Revenue: $2.14 billion vs analyst estimates of $2.10 billion (2.3% year-on-year growth, 2% beat)
- Adjusted EPS: $0.22 vs analyst estimates of $0.19 (16.8% beat)
- Adjusted EBITDA: $340 million vs analyst estimates of $331.6 million (15.9% margin, 2.5% beat)
- Operating Margin: 10.4%, in line with the same quarter last year
- Market Capitalization: $15.7 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From News Corp’s Q3 Earnings Call
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Kane Hannan (Goldman Sachs) asked if realtor.com can sustain double-digit revenue growth as the housing market recovers. CEO Robert Thomson pointed to early positive momentum and emphasized ongoing investments in premium product lines and new segments.
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David Karnovsky (JPMorgan) questioned the pace and potential for further acceleration of share repurchases, as well as the impact of Wall Street Journal price increases. Thomson confirmed flexibility to further increase buybacks and highlighted that pricing strategies are still being evaluated.
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Entcho Raykovski (Evans and Partners) inquired about the Factiva contract dispute settlement and its effect on Dow Jones revenues. CFO Lavanya Chandrashekar noted only a modest direct benefit, but emphasized new customer wins and the success of GenAI search as ongoing growth drivers.
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Craig Huber (Huber Research) raised the topic of further business simplification following the Foxtel divestiture. Thomson indicated openness to further structural changes, noting a focus on transparency and performance reporting by segment.
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David Joyce (Seaport Global) queried the sustainability of high Risk & Compliance growth rates. Thomson pointed to regulatory trends and expanding Know Your Client requirements as underpinning demand, suggesting ongoing opportunity in the segment.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will track (1) the pace of digital subscription and data product adoption at Dow Jones, (2) signs of a sustained rebound in U.S. and Australian housing markets driving digital real estate revenue, and (3) the impact of new content licensing and AI partnerships on profitability. Progress in book publishing recovery and execution of share buybacks will also be closely watched.
News Corp currently trades at $26.86, up from $25.04 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free for active Edge members).
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