Global media and publishing company News Corp (NASDAQ: NWSA) reported Q3 CY2025 results topping the market’s revenue expectations, with sales up 2.3% year on year to $2.14 billion. Its GAAP profit of $0.20 per share was 8.1% above analysts’ consensus estimates.

Is now the time to buy NWSA? Find out in our full research report (it’s free for active Edge members).

StockStory’s Take

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.

Looking ahead, News Corp’s management believes that ongoing strength in its digital businesses and further stabilization in real estate markets will be central to future growth. The company expects to benefit from new AI-related partnerships and continued investment in high-margin content licensing. CFO Lavanya Chandrashekar emphasized, “We expect strong free cash flow this year and plan to maintain an accelerated share buyback pace.” Management also pointed to recovering trends in book publishing and potential margin gains from cost efficiencies across media operations.

Key Insights from Management’s Remarks

Management credited Q3 performance to expansion in digital subscriptions and data products, early signs of recovery in U.S. housing, and disciplined cost controls in media, while acknowledging the ongoing challenges within book publishing.

• Dow Jones digital expansion: Strong digital subscription growth at The Wall Street Journal and new product launches in Risk & Compliance fueled higher recurring revenue, with digital now accounting for 84% of Dow Jones segment revenue. The launch of GenAI-powered search in Factiva is also seeing early traction.

• Real estate recovery underway: Revenue at realtor.com grew 9% year over year, supported by improved engagement and increased contributions from new homes and rentals. Management cited targeted investments in user experience and premium offerings as key to outperformance, even as the housing market remains below historical levels.

• Book publishing headwinds: Book Publishing faced lower orders and a $13 million write-off due to a distributor’s closure, with additional softness compared to the prior year’s strong titles. However, management noted recent improvement in order trends and several bestsellers providing a potential rebound.

• Cost discipline in news media: News Media margins rose from 3.3% to 5.5%, reflecting ongoing cost efficiency initiatives in the U.K. and Australia, as well as digital advertising gains at the New York Post. The upcoming launch of the California Post is expected to further expand digital inventory.

• Capital allocation shift: News Corp accelerated its share buyback program—repurchasing stock at a pace more than four times higher than previous quarters—citing a robust cash position and a belief that the company is undervalued. Management also referenced ongoing portfolio optimization, including recent divestitures and asset swaps.

Drivers of Future Performance

Management’s outlook centers on further digital growth, real estate market recovery, and operational efficiencies, while monitoring macro and industry-specific risks.

• Continued digital momentum: Management expects Dow Jones and digital real estate to remain key profit drivers, supported by new product enhancements, AI-powered data offerings, and an expanding subscription base. The company aims to increase recurring, high-margin digital revenue streams and sees ongoing demand for compliance and analytics products.

• Real estate market sensitivity: The pace of recovery in U.S. and Australian property markets will influence realtor.com and REA Group’s growth, with lower mortgage rates and new home demand as potential tailwinds. Management remains cautious, acknowledging that market normalization is still underway and subject to interest rate and macroeconomic uncertainty.

• Margin gains and capital returns: News Corp is targeting further margin expansion through continued cost efficiencies, especially in News Media, and higher front-list releases in Book Publishing. The accelerated share buyback is expected to continue, but management noted that capital deployment remains flexible in response to market and portfolio developments.

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 $25.08, in line with $25.04 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members).

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