NWSA Q4 Earnings in Line With Estimates, Revenues Increase Y/Y

News Corporation (NWSA) reported fiscal Q4 2025 EPS of $0.19, meeting estimates, on revenues of $2.11 billion, up 1% year-over-year and slightly above consensus, despite a 5% decline in the bottom line. Revenue growth was primarily driven by the Digital Real Estate Services (+4% Y/Y) and Dow Jones (+7% Y/Y) segments, with the latter benefiting from robust digital subscriptions and professional information services, though Realtor.com's lead volume fell 13% due to high mortgage rates. Conversely, Book Publishing and News Media segments experienced revenue declines, while NWSA shares saw a modest 0.75% gain in after-hours trading.

Analysis

News Corporation (NWSA) reported mixed fourth-quarter fiscal 2025 results, with earnings per share of $0.19 meeting consensus estimates but declining 5% year-over-year. Revenue grew a modest 1% to $2.11 billion, driven entirely by the performance of its Dow Jones and Digital Real Estate Services segments, which masked significant weakness in its legacy News Media and Book Publishing divisions. The Dow Jones segment was the standout performer, with revenues increasing 7% year-over-year, propelled by a 10% rise in its high-margin professional information business and a 9% increase in digital-only subscriptions for The Wall Street Journal. This successful digital transition, with digital now accounting for 83% of the segment's revenue, underscores its position as the company's primary growth engine. The Digital Real Estate Services segment also posted a 4% revenue gain and a notable 16% increase in adjusted segment EBITDA; however, this topline growth obscures a critical headwind, as Realtor.com's lead volume plummeted 13% due to high mortgage rates, indicating severe sensitivity to the housing market cycle. Conversely, the Book Publishing and News Media segments saw revenues decline 4% each, plagued by softer consumer spending, lower advertising, and a significant drop in unique digital users at key mastheads, highlighting ongoing secular pressures. Despite the divergent operational performance, the company's total EBITDA grew 6% to $329 million and it maintains a solid balance sheet with $2.4 billion in cash.

Key Decisions for Investors

• Investors should recognize News Corp as a portfolio of contrasting assets, where the high-quality growth of the Dow Jones segment is currently offsetting secular decline in News Media and Book Publishing.
• The Digital Real Estate segment's performance is a critical variable to monitor; while showing EBITDA growth, the 13% plunge in Realtor.com's lead volume highlights a significant vulnerability to persistent high interest rates and housing market weakness.
• Given the in-line earnings, conflicting segment results, and modest after-hours stock reaction, a neutral stance is warranted, as upside potential from a housing market recovery is balanced by the continued deterioration of legacy media assets.