By Alexandra Bruell and Nicholas G. Miller

The New York Times Company reported strong fourth-quarter results and a robust revenue forecast for the current period, but shares fell more than 9% in early trading as investors grew uneasy over the company's increased spending.

Revenue for the media company rose 10%, to $802.3 million, beating analyst expectations.

Operating costs rose by 10.5% in the quarter, or 9.7% on an adjusted basis, which the Times attributed in part to litigation charges related to the company's artificial intelligence copyright infringement lawsuits. The company expects adjusted operating costs to increase by 8% to 9% in the first quarter.

Analysts focused on the higher costs in a call with executives Wednesday, expressing concern about marketing and other expenses and slowing growth in average revenue per user compared with past quarters.

The Times said it is making investments in video, which it described as a "long-term opportunity to establish the Times as a preferred brand for watching news." The company also emphasized that per-user revenue growth can fluctuate. It plans to increase the price for its bundled product early this year to $30, from $25.

The company said it gained 450,000 net digital-only subscribers in the fourth quarter, and now has 12.21 million digital-only subscribers and 12.78 million total subscribers. The company rolled out family subscription plans last year; each one is priced higher than an individual subscription and counts for two subscribers in the company's results.

Subscription revenues rose 9.4%, as an increase in bundled products and non-news single-product subscription revenue helped to offset a decline in news-only subscription revenue. Advertising revenue increased 16%.

Net income rose to $129.8 million, or 79 cents a share, up from $123.7 million, or 75 cents a share, in the prior-year period.

Adjusted earnings were 89 cents a share. Analysts polled by FactSet expected 88 cents.

The Times said it expects first-quarter subscription revenue to increase by between 9% and 11% from the previous year and advertising revenue to rise in the low double digits.

The company's board also raised the quarterly dividend by 28%, to 23 cents.

Write to Nicholas G. Miller at nicholas.miller@wsj.com

(END) Dow Jones Newswires

The New York Times said it expects to see benefits from the recent price increase for its bundled product to $30 every four weeks, up from $25. "New York Times Stock Drops Despite Strong Fourth-Quarter Results," at 9:34 a.m. ET, incorrectly said it plans to increase the price.

(END) Dow Jones Newswires

February 04, 2026 17:17 ET (22:17 GMT)

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