News (NWS) Financials

News Corp. (NASDAQ:NWSA) delivered a stronger fourth quarter of fiscal 2026, with revenue of $2.337 billion, up from $2.185 billion in the prior quarter. Operating income increased to $249 million from $203 million, while net income attributable to common shareholders doubled sequentially to $179 million, or $0.33 per diluted share.

The company’s recent results show a meaningful recovery from the weaker profitability seen in fiscal 2023 and 2024. Revenue has generally remained in the $2.0 billion-to-$2.5 billion quarterly range, while operating income has improved from $110 million in Q3 2024 and $136 million in Q4 2024 to more than $200 million in each quarter of fiscal 2026. However, results remain uneven, and the data includes discontinued operations and restated periods that make direct year-over-year comparisons more difficult.

• Improving operating profitability: Fiscal 2026 operating income was $204 million, $373 million, $203 million and $249 million across Q1 through Q4. Although Q2 was unusually strong, profitability has remained well above the levels reported in several earlier periods.
• Strong fourth-quarter earnings growth: Net income attributable to common shareholders rose from $89 million in Q3 to $179 million in Q4, lifting diluted EPS from $0.16 to $0.33.
• Solid operating cash flow: Cash flow from operating activities totaled $422 million in Q4 2026, following $499 million in Q3 and $230 million in Q2. This indicates that earnings are generally converting into cash despite quarterly volatility in working capital.
• Lower debt burden: Long-term debt declined from $2.706 billion in September 2024 to $1.988 billion in March 2026, while short-term debt fell to zero by March 2026. Debt reduction improves financial flexibility and reduces refinancing risk.
• Large cash balance: Cash and equivalents increased from $1.528 billion in September 2023 to $2.171 billion in March 2026. The balance provides a sizable liquidity cushion relative to quarterly operating expenses and debt obligations.
• Shareholder returns remain a priority: News Corp. repurchased $326 million of common stock and paid $55 million in dividends during Q4 2026. Buybacks have also occurred in each of the reported fiscal 2026 quarters, supporting per-share results when earnings are stable.
• Revenue is growing but volatile: Fiscal 2026 quarterly revenue ranged from $2.144 billion to $2.362 billion before ending at $2.337 billion. The sequential Q4 increase was encouraging, but revenue remained below the $2.499 billion reported in Q1 2024 and the $2.577 billion reported in Q4 2024.
• Working capital is a major cash-flow swing factor: Changes in operating assets and liabilities contributed $33 million to Q4 operating cash flow, compared with $234 million in Q3 and negative $156 million in Q2. This volatility can make quarterly free cash flow difficult to forecast.
• Operating expenses continue to rise: Selling, general and administrative expense increased to $1.914 billion in Q4 2026 from $1.804 billion in Q1. Restructuring charges also rose from $19 million in Q1 to $46 million in Q4, suggesting that cost-control and transformation efforts remain ongoing.
• Significant intangible-asset exposure: Goodwill and intangible assets totaled approximately $6.36 billion at March 31, 2026, or roughly 41% of total assets. Any impairment charges could materially reduce reported earnings and equity.

Overall, News Corp.’s financial profile is improving: operating earnings are stronger, cash generation has recovered, and debt has trended lower. The main issues for investors are the uneven revenue pattern, restructuring costs, working-capital swings and the company’s substantial goodwill and intangible-asset balances. Continued operating-cash-flow strength and consistent profitability will be important for supporting further buybacks while preserving balance-sheet flexibility.