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News Class B
(NASDAQ:NWS)
Select Model
Select Model
Rating:64Neutral
Price Target:
$34.00
▼(-3.52% Downside)
Action:Reiterated
Date:10/08/26
The score is driven primarily by improving fundamentals (revenue and net income rebound, moderating leverage, and solid free cash flow) and a very positive earnings narrative with upbeat fiscal 2027 outlook and strong cash flow/share repurchase execution. Offsetting this, technical momentum is currently weak and valuation is less attractive (high P/E and low dividend yield), which tempers the overall rating.
Positive Factors
Digital transformation
A majority-digital revenue mix can improve scalability, customer retention and recurring revenue quality across News Corp’s portfolio. Continued product innovation and AI licensing may further diversify monetization, supporting more durable growth and margin potential than legacy media alone.
Negative Factors
Margin volatility
The 2026 EBITDA margin decline shows that stronger revenue does not automatically translate into consistent operating leverage. Persistent cost pressure or unfavorable mix could limit earnings durability, reduce cash conversion and make future profitability more dependent on execution.
Read all positive and negative factors
Positive Factors
Negative Factors
Digital transformation
A majority-digital revenue mix can improve scalability, customer retention and recurring revenue quality across News Corp’s portfolio. Continued product innovation and AI licensing may further diversify monetization, supporting more durable growth and margin potential than legacy media alone.
Read all positive factors
News Class B Key Performance Indicators (KPIs)
Any
Revenue by Type
Breaks revenue down by source such as subscriptions, advertising and other services. A larger share of subscription revenue means more predictable cash flow, while heavy reliance on advertising makes results more cyclical and sensitive to economic swings.
Breaks revenue down by source such as subscriptions, advertising and other services. A larger share of subscription revenue means more predictable cash flow, while heavy reliance on advertising makes results more cyclical and sensitive to economic swings.
Data provided by:
The Fly
The FlyNews Class B (NWS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$16.42B
Dividend Yield0.62%
Average Volume (3M)1.14M
Price to Earnings (P/E)31.4
Beta (1Y)0.75
Revenue Growth1.06%
EPS Growth26.22%
CountryUS
Employees21,700
SectorCommunication Services
Sector Strength97
IndustryPublishing
Share Statistics
EPS (TTM)1.03
Shares Outstanding179,914,280
10 Day Avg. Volume990,104
30 Day Avg. Volume1,138,012
Financial Highlights & Ratios
PEG Ratio1.06
Price to Book (P/B)1.83
Price to Sales (P/S)1.73
P/FCF Ratio19.25
Enterprise Value/Market Cap1.03
Enterprise Value/Revenue1.88
Enterprise Value/Gross Profit3.30
Enterprise Value/Ebitda11.06
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.32
Revenue Forecast (FY)$9.41B
News Class B Business Overview & Revenue Model
Company Description
News Corporation stands as a leading global enterprise in media and information services, dedicated to creating and distributing compelling, authoritative content, alongside a variety of products and services, for consumers and businesses worldwid...
News Class B Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Positive
The call was strongly positive, with record quarterly and annual profitability, double-digit growth across Dow Jones, Digital Real Estate Services, and HarperCollins, a 42% increase in free cash flow, accelerated share repurchases, and confidence in further margin and revenue growth. The main challenges were the decline in News Media EBITDA, weakness in print advertising, housing-market and mortgage-rate pressures, lower Realtor.com monthly users, modest Dow Jones Energy growth, and geopolitical uncertainty.Positive Updates
Record Fourth-Quarter Profitability
Fourth-quarter revenue increased 11% to $2.3 billion, total segment EBITDA rose 31% to $423 million, net income from continuing operations surged 167% to $230 million, reported EPS increased to $0.33 from $0.09, and adjusted EPS rose to $0.35 from $0.19. The company reported its highest fourth-quarter profit on record and 13 consecutive quarters of year-over-year total segment EBITDA growth.
Negative Updates
Read all updates
Q4-2026 Updates
Positive
Negative
Record Fourth-Quarter Profitability
Fourth-quarter revenue increased 11% to $2.3 billion, total segment EBITDA rose 31% to $423 million, net income from continuing operations surged 167% to $230 million, reported EPS increased to $0.33 from $0.09, and adjusted EPS rose to $0.35 from $0.19. The company reported its highest fourth-quarter profit on record and 13 consecutive quarters of year-over-year total segment EBITDA growth.
Read all positive updates
Company Guidance
For fiscal 2027, News Corp said it is confident in the strength and resilience of its business, with early signs positive for the first quarter; Dow Jones expects continued strong revenue performance, B2B revenues, notably at Dow Jones Energy, to improve in the first quarter, continued margin expansion, and improved growth in the first quarter, with customer retention approximately 90%; Digital Real Estate Services reported Australian residential new buy listings for July declined 2%, while Realtor hopes to see continued revenue improvements, albeit the overall housing recovery could be impacted in the shorter term by rising mortgage rates; Book Publishing expects to benefit from a strong frontlist program and an easier comparison versus the prior year; News Media expects incremental costs compared to the prior year related to the continued rollout of the California Post, some benefit from new content licensing revenues, and faces a particularly difficult prior year comparison in the first quarter; free cash flow improvement remains a key focus, is expected to be a source of value expansion, and free cash flow generation tends to be second-half weighted due to seasonality; more AI licensing deals are on the way, and the Meta deal is now part of the business for News Media and Dow Jones over successive quarters.News Class B Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
72
Positive
Cash Flow
70
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 9.03B | 8.45B | 8.25B | 8.01B | 10.38B |
| Gross Profit | 5.14B | 4.75B | 4.47B | 4.13B | 5.31B |
| EBITDA | 1.53B | 1.42B | 1.22B | 1.50B | 1.68B |
| Net Income | 573.00M | 464.00M | 266.00M | 149.00M | 623.00M |
Balance Sheet | |||||
| Total Assets | 15.54B | 15.50B | 16.68B | 16.92B | 17.22B |
| Cash, Cash Equivalents and Short-Term Investments | 2.10B | 2.40B | 1.87B | 1.83B | 1.82B |
| Total Debt | 2.92B | 2.94B | 3.10B | 4.21B | 4.16B |
| Total Liabilities | 6.31B | 6.12B | 7.67B | 7.98B | 8.08B |
| Stockholders Equity | 8.53B | 8.77B | 8.12B | 8.06B | 8.22B |
Cash Flow | |||||
| Free Cash Flow | 811.00M | 727.00M | 741.00M | 593.00M | 855.00M |
| Operating Cash Flow | 1.24B | 1.13B | 1.10B | 1.09B | 1.35B |
| Investing Cash Flow | -519.00M | -153.00M | -524.00M | -574.00M | -2.08B |
| Financing Cash Flow | -1.04B | -563.00M | -441.00M | -501.00M | 404.00M |
News Class B Technical Analysis
Positive
35.24
Price Trends
32.99
Negative
31.59
Positive
30.14
Positive
Market Momentum
-0.31
Negative
50.71
Neutral
76.52
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NWS, the sentiment is Positive. The current price of 35.24 is above the 20-day moving average (MA) of 32.15, above the 50-day MA of 32.99, and above the 200-day MA of 30.14, indicating a neutral trend. The MACD of -0.31 indicates Negative momentum. The RSI at 50.71 is Neutral, neither overbought nor oversold. The STOCH value of 76.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NWS.
News Class B Risk Analysis
News Class B disclosed 26 risk factors in its most recent earnings report. News Class B reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
News Class B Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $10.66B | 27.31 | 19.47% | 1.32% | 10.76% | 23.78% | |
64 Neutral | $16.42B | 31.44 | 6.62% | 0.62% | 1.06% | 26.22% | |
62 Neutral | $2.60B | 13.61 | 25.28% | 2.78% | -0.27% | 111.79% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
50 Neutral | $1.01B | -25.48 | -25.00% | 17.25% | -6.67% | -134.92% | |
49 Neutral | $161.62M | -4.68 | 38.08% | ― | -11.12% | 72.31% | |
48 Neutral | $725.33M | 26.09 | 7.05% | 2.16% | -2.53% | ― |
* Communication Services Sector Average
NWS
News Class B
32.58
2.83
9.51%
WLY
John Wiley Sons Cl A
52.58
16.84
47.13%
LEE
Lee Enterprises
6.83
2.44
55.58%
NYT
New York Times
66.88
12.60
23.21%
SCHL
Scholastic
39.26
11.48
41.31%
TDAY
USA TODAY
7.21
3.62
100.84%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.