Abstract

News Corporation is scheduled to report fiscal second-quarter results on February 05, 2026, Post Market; this preview synthesizes recent quarterly performance, segment dynamics, and current-quarter forecasts to frame the company’s near-term earnings trajectory and key drivers.

Market Forecast

Consensus projections indicate News Corporation’s fiscal second-quarter revenue at US dollars 2.29 billion, up 5.56% year over year, with adjusted EPS estimated at 0.34, up 9.51% year over year, and EBIT expected at US dollars 373.10 million, up 16.46% year over year; forecasts for gross profit margin and net profit margin were not available. Across the main business lines, last quarter’s revenue mix was led by Dow Jones at US dollars 586.00 million, followed by News and Information Services at US dollars 545.00 million, Book Publishing at US dollars 534.00 million, and Digital Real Estate Services at US dollars 479.00 million; the near-term outlook centers on subscription resilience and disciplined costs. The most promising segment remains Digital Real Estate Services, supported by last quarter’s revenue of US dollars 479.00 million; segment-level year-over-year growth data was not available in the collected dataset.

Last Quarter Review

News Corporation delivered fiscal first-quarter results with revenue of US dollars 2.14 billion, a gross profit margin of 56.11%, GAAP net profit attributable to the parent company of US dollars 112.00 million, a net profit margin of 5.22%, and adjusted EPS of 0.22, up 4.76% year over year. A notable feature was the combination of a revenue beat of US dollars 42.48 million and an EPS beat of 0.04, alongside a quarter-on-quarter net profit decline of 84.93%, underscoring mixed operating leverage patterns against macro variability. Main business highlights included Dow Jones revenue at US dollars 586.00 million, News and Information Services at US dollars 545.00 million, Book Publishing at US dollars 534.00 million, and Digital Real Estate Services at US dollars 479.00 million, while total revenue contracted 15.59% year over year.

Current Quarter Outlook

Main Business Outlook

The primary near-term narrative for News Corporation revolves around the balance between subscription revenues and cyclical advertising exposure within its diversified portfolio. The Dow Jones unit, as the largest revenue contributor last quarter, emphasizes subscriptions, professional information, and events tied to the Wall Street Journal and adjacent business-information offerings, which can provide steadier revenue streams relative to advertising. The News and Information Services business, which includes publishing and news operations across various properties, remains sensitive to advertising pacing and volume, but operating discipline and pricing actions can mitigate volatility on margin conversion. Book Publishing, represented by HarperCollins, tends to follow release schedules and holiday season performance in the December quarter; this cycle typically benefits from frontlist titles, backlist strength, and supply chain execution, all of which feed into revenue quality and cost containment through inventory optimization. For the quarter in view, consensus expects US dollars 2.29 billion of revenue and adjusted EPS of 0.34; the implied operating leverage hinges on maintaining the gross profit base while constraining overhead, which, if achieved, would backstop the expected 9.51% year-over-year EPS growth and 16.46% year-over-year EBIT uplift. Across the portfolio, managing content acquisition costs, print-to-digital migration, and pricing decisions in subscriptions will be pivotal to sustaining margin resilience in the face of seasonal fluctuations.

Most Promising Segment

Digital Real Estate Services, which posted US dollars 479.00 million in revenue last quarter, remains the segment with the strongest structural tailwinds within News Corporation’s portfolio. The near-term thesis for this unit is supported by continued platform engagement, listing volumes, and premium product uptake, all of which help monetization per transaction and per subscriber. In earnings terms, the segment’s leverage can be meaningful: stable fixed costs against improving top-line momentum produce strong incremental margins, which tend to be accretive to consolidated EBIT and adjusted EPS. While segment-level year-over-year growth data was not available in the collected dataset, the qualitative underpinning remains favorable when listing and transaction cycles stabilize; the focus is on enhancing product suites, improving conversion funnels, and fine-tuning pricing tiers to capture value where engagement is highest. For the quarter under review, this business is well placed to support the consensus revenue profile if activity holds, with the potential for positive surprises should pricing power persist and cost intensity remain contained. Execution on product innovation and deeper data integration across customer workflows will be critical markers analysts monitor in the release and subsequent commentary.

Stock Price Drivers This Quarter

The stock price this quarter will be most sensitive to the translation of revenue growth into earnings, especially through gross margin preservation and operating expense control. Consensus implies earnings expansion with adjusted EPS at 0.34 and EBIT at US dollars 373.10 million, but investors will look for confirmation that cost discipline can secure margin continuity when compared with last quarter’s gross profit margin of 56.11% and net profit margin of 5.22%. The magnitude of sequential operating leverage—particularly after the last quarter’s 84.93% quarter-on-quarter decline in GAAP net profit—places emphasis on whether variable costs scale proportionally with revenue and whether fixed cost absorption supports EBIT progression. Another key driver is the revenue mix, as a higher share of subscription-heavy units tends to provide improved predictability, while cyclical segments introduce variance; clarity in management’s comments around pricing, renewals, and content investment will help frame risk-to-reward in the coming quarters. Lastly, the degree of variance versus consensus on revenue (US dollars 2.29 billion) and EPS (0.34) will likely anchor the immediate reaction, with any indication of sustained uplift from product initiatives, monetization strategies, or operating efficiencies influencing the forward multiple and sentiment.

Analyst Opinions

Within the defined collection window, accessible institution-linked preview notes and formal analyst ratings meeting the strict parameters were not retrieved; inferences about sentiment therefore rely on the consensus estimates embedded in the forecast dataset. These estimates outline an expectation for year-over-year growth in revenue of 5.56%, adjusted EPS of 9.51%, and EBIT of 16.46%, which align with a constructively balanced stance assuming execution on operating efficiency and stable revenue conversion. The prevailing interpretation of those figures points to cautious optimism: the growth in adjusted EPS relative to revenue suggests margin protection efforts are expected to hold, while the EBIT uplift implies improved operating leverage relative to last quarter’s dynamic. In practical terms, the majority framing inferred from consensus leans positive, with the caveat that tangible validation must come from realized margin performance and commentary on cost containment initiatives. Observers will attach weight to detail around subscriptions and pricing, as well as signals on content costs and product development in Digital Real Estate Services, to assess durability of the implied growth assumptions and the feasibility of sustaining near-term earnings momentum.