News Corp reported a robust third quarter for fiscal 2026, with total revenue rising 9% to $2.2 billion, driven by strong performances in its Dow Jones, Digital Real Estate Services, and Book Publishing segments. Notably, segment EBITDA surged 18% to $343 million, reflecting margin expansion from 14.4% to 15.7%. The company also accelerated its share buyback program, repurchasing $193 million in shares, supported by a strong free cash flow and a recent loan repayment.
This performance highlights News Corp’s successful pivot towards digital, with Dow Jones reporting 84% of its revenue from digital sources. The Risk and Compliance division saw a 19% revenue increase, indicating a growing demand for corporate risk management solutions. Additionally, the company is positioning itself to benefit from AI monetization, with ongoing partnerships with Meta and OpenAI expected to diversify revenue streams.
For market professionals, the key takeaway is News Corp’s sustained profitability growth and strategic investments in digital segments, which could enhance shareholder value and provide resilience amid macroeconomic challenges.
Source: fool.com