News Corporation reported a strong start to fiscal 2027, with revenue and earnings surpassing analyst estimates. Growth was primarily driven by the Dow Jones, Digital Real Estate Services, and Book Publishing segments, marking the company's fourteenth consecutive quarter of year-over-year profitability expansion. The company emphasized its continued transition into a digital-first, higher-margin entity, with digital revenues now accounting for a substantial portion of its major segments.
Key Highlights
- Revenues rose 6% year-over-year to $2.28 billion, exceeding the $2.27 billion consensus estimate.
- Net income surged 43% to $215 million, while Total Segment EBITDA grew 19% to $403 million.
- Dow Jones segment revenue increased 8% to $630 million, driven by an 11% rise in Risk & Compliance and a 4% growth in circulation revenues.
- Digital revenues reached 85% of total Dow Jones revenue, while The Wall Street Journal averaged over 5 million total subscriptions.
- REA Group revenues climbed 13% to $369 million, benefiting from yield growth and favorable foreign exchange, despite national listing volumes declining 2%.