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News Corporation Class A (NWSA)
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News Corp (NWSA) AI Stock Analysis

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News Corp

(NASDAQ:NWSA)

Rating:79Outperform
Price Target:
$35.00
▲(17.21%Upside)
News Corp's overall stock score is driven by strong financial performance and strategic initiatives like debt reduction and stock buybacks. Technical indicators support a bullish outlook, though premium valuation and revenue challenges temper the score.
Positive Factors
Earnings
NWSA delivered a solid 3Q beat with revenue up 1% and EBITDA 8% ahead of expectations.
Valuation
There is potential to close a significant valuation discount, with the company affirming commitment to closing this gap.
Negative Factors
Ad Environment
The firm pointed to a more challenging ad environment within News Media.
Capital Requirements
Increasing the REA stake by 19% may require $3.9 billion in capital, with identified sources including the pending sale of Foxtel and selling a portion of Move to REA.

News Corp (NWSA) vs. SPDR S&P 500 ETF (SPY)

News Corp Business Overview & Revenue Model

Company DescriptionNews Corp (NWSA) is a global media and information services company headquartered in New York City. It operates in several sectors, including news and information services, book publishing, digital real estate services, and subscription video services. The company owns prominent brands such as The Wall Street Journal, HarperCollins Publishers, and Realtor.com, providing a diverse range of products and services that appeal to consumers and businesses worldwide.
How the Company Makes MoneyNews Corp generates revenue through various streams across its diverse business segments. In the news and information services sector, the company earns money primarily from advertising, circulation, and subscription revenues, particularly from its flagship publications like The Wall Street Journal and The Times. The book publishing segment, led by HarperCollins Publishers, contributes to revenue through book sales across multiple formats, including print, digital, and audio. Digital real estate services, such as those provided by Realtor.com, generate income through advertising and lead generation services for real estate agents and brokers. Additionally, News Corp's subscription video services, including pay-TV distribution and licensing of content, further diversify its revenue streams. Key partnerships with other media and technology companies, along with strategic acquisitions, enhance its content distribution capabilities and market reach, contributing significantly to its overall earnings.

News Corp Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q3-2025)
|
% Change Since: 4.85%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook with strong performance in key segments such as Dow Jones and Digital Real Estate Services, along with strategic gains from the sale of Foxtel. However, challenges in the News Media segment and issues with Factiva and Realtor.com indicated some areas of concern. Despite these challenges, the company's strategic focus on digital growth and asset realignment provided a solid platform for continued success.
Q3-2025 Updates
Positive Updates
Significant Increase in Net Income
Net income from continuing operations rose 67% to $107 million in the third quarter compared to the prior year.
Strong Performance by Dow Jones
Dow Jones posted a 6% revenue growth with a 12% surge in profitability and a margin increase from 21.7% to 23%. Digital circulation revenue expanded 14%, marking the fastest growth rate in almost three years.
Successful Sale of Foxtel
The sale of Foxtel to DAZN removed $724 million of debt from the balance sheet and resulted in a 6% equity interest in the fast-growing sports streaming platform DAZN.
Digital Real Estate Services Growth
Digital Real Estate Services saw profitability surge 19% on a 5% increase in revenues, with a notable margin improvement from 26.8% to 30.5%. REA posted 6% revenue growth, or 11% on a constant currency basis.
Book Publishing Revenue Growth
Book Publishing segment revenues expanded by 2% to $514 million, with EBITDA rising 3% to $64 million.
Negative Updates
Challenges in News Media Segment
News Media segment faced an 8% decrease in revenue due to tougher advertising conditions. However, segment EBITDA grew 22% due to cost savings initiatives.
Factiva Revenue Impact
A customer dispute resulted in a 200 basis point adverse impact on professional information business revenues at Dow Jones, particularly affecting the Factiva product.
Realtor.com Lead Volume Decline
Realtor.com lead volumes declined 17% year-over-year, while average monthly unique users fell 8% to 66 million due to shifts in audience acquisition strategies and persistent affordability issues.
Company Guidance
In the third quarter of fiscal year 2025, News Corp reported robust financial performance, showcasing a strategic transformation towards digital growth and a focus on three core pillars: Dow Jones, Digital Real Estate, and Book Publishing. Net income from continuing operations surged by 67% to $107 million, with revenues growing by 1% to $2 billion despite currency headwinds. Total segment EBITDA increased by 12%, enhancing the overall margin from 13% to 14.4%. Adjusted revenues rose 2%, and adjusted total segment EBITDA grew by 15%. Earnings per share from continuing operations doubled to $0.14, while adjusted EPS increased to $0.17 from $0.13 in the previous year. The sale of Foxtel to DAZN marked a strategic move, eliminating $724 million of debt and securing a 6% equity stake in DAZN. Dow Jones posted a 6% revenue increase, with digital circulation revenue up by 14% and digital ARPU showing year-over-year improvement. Digital Real Estate Services saw profitability soar by 19%, and Book Publishing revenues grew by 2% to $514 million. News Media EBITDA grew by 22%, underscoring successful digital partnerships and cost discipline. Overall, the company's transformation is driven by strategic asset realignment, cost discipline, and an emphasis on intellectual property, with a focus on maximizing shareholder returns.

News Corp Financial Statement Overview

Summary
News Corp demonstrated strong financial performance with improved profitability and cash flow metrics despite a revenue decline. The company showed operational efficiency gains and reduced leverage, although it faces growth challenges in the competitive entertainment industry.
Income Statement
78
Positive
News Corp showed a stable gross profit margin with a TTM figure of 100%. The net profit margin improved to 5.18% in TTM from 2.64% annually. Revenue declined by 6.72% in TTM compared to the previous year, indicating potential growth challenges. However, the EBIT margin improved to 10.16% from 7.98% annually, suggesting operational efficiency gains. The EBITDA margin also increased, reflecting strong earnings performance.
Balance Sheet
75
Positive
The debt-to-equity ratio improved to 0.36 in TTM, reflecting a reduction in leverage. The return on equity increased to 5.94% in TTM from 3.28% annually, showing improved profitability. The equity ratio remained stable at around 49.5%, indicating solid financial stability. However, maintaining a high equity ratio is crucial to mitigate financial risk.
Cash Flow
82
Very Positive
Free cash flow increased by 34% in TTM, demonstrating strong cash generation. The operating cash flow to net income ratio was 2.46, indicating robust cash flow relative to earnings. The free cash flow to net income ratio was 1.66, reflecting efficient cash flow management. Overall, the cash flow metrics highlight healthy financial operations.
BreakdownTTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income Statement
Total Revenue9.40B10.09B9.88B10.38B9.36B9.01B
Gross Profit9.40B10.09B4.04B4.57B3.85B3.36B
EBITDA1.57B1.36B1.14B1.73B1.29B-695.00M
Net Income487.00M266.00M149.00M623.00M330.00M-1.27B
Balance Sheet
Total Assets16.58B16.68B16.92B17.22B16.77B14.26B
Cash, Cash Equivalents and Short-Term Investments2.10B1.96B1.83B1.82B2.24B1.52B
Total Debt2.92B4.05B4.21B4.16B3.60B2.54B
Total Liabilities7.50B7.67B7.98B8.08B7.63B5.87B
Stockholders Equity8.20B8.12B8.06B8.22B8.21B7.58B
Cash Flow
Free Cash Flow807.00M602.00M593.00M855.00M847.00M342.00M
Operating Cash Flow1.20B1.10B1.09B1.35B1.24B780.00M
Investing Cash Flow-379.00M-524.00M-574.00M-2.08B-1.29B-427.00M
Financing Cash Flow-588.00M-441.00M-501.00M404.00M699.00M-472.00M

News Corp Technical Analysis

Technical Analysis Sentiment
Positive
Last Price29.86
Price Trends
50DMA
28.64
Positive
100DMA
27.76
Positive
200DMA
27.83
Positive
Market Momentum
MACD
0.42
Positive
RSI
61.62
Neutral
STOCH
48.34
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NWSA, the sentiment is Positive. The current price of 29.86 is above the 20-day moving average (MA) of 29.52, above the 50-day MA of 28.64, and above the 200-day MA of 27.83, indicating a bullish trend. The MACD of 0.42 indicates Positive momentum. The RSI at 61.62 is Neutral, neither overbought nor oversold. The STOCH value of 48.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for NWSA.

News Corp Risk Analysis

News Corp disclosed 27 risk factors in its most recent earnings report. News Corp 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 Corp Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$24.21B13.9916.89%0.96%15.70%26.73%
FOFOX
80
Outperform
$24.21B12.8516.89%1.04%15.70%26.73%
79
Outperform
$17.77B34.985.88%0.67%-5.43%135.46%
62
Neutral
$41.14B-1.94-12.05%4.72%2.10%-69.66%
WBWBD
60
Neutral
$31.54B-27.69%-5.58%-254.85%
58
Neutral
$9.17B-28.56%1.92%-4.50%-898.86%
53
Neutral
$9.17B-28.56%1.08%-4.50%-898.86%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
NWSA
News Corp
29.86
2.34
8.50%
PARA
Paramount Global Class B
12.99
1.65
14.55%
FOXA
Fox
56.25
19.63
53.60%
FOX
Fox
51.68
17.67
51.96%
PARAA
Paramount Global
23.15
0.68
3.03%
WBD
Warner Bros
12.75
4.20
49.12%

News Corp Corporate Events

Stock BuybackBusiness Operations and Strategy
News Corp Extends Stock Repurchase Program
Positive
Jul 18, 2025

News Corporation has announced an extension of its stock repurchase program, authorizing an additional $1 billion for the buyback of its Class A and Class B common stock as of July 15, 2025. This move, aimed at enhancing shareholder value, follows a similar authorization in 2021 and reflects the company’s strategic focus on optimizing its capital structure amid changing market conditions.

The most recent analyst rating on (NWSA) stock is a Buy with a $40.00 price target. To see the full list of analyst forecasts on News Corp stock, see the NWSA Stock Forecast page.

Stock BuybackBusiness Operations and Strategy
News Corp Extends Stock Repurchase Program by $1 Billion
Positive
Jul 17, 2025

On July 17, 2025, News Corporation announced an extension of its stock repurchase program, authorizing an additional $1 billion for the buyback of Class A and Class B common stock. This move is intended to enhance shareholder value and reflects the company’s ongoing strategy to manage its capital structure effectively. The repurchase program, initially authorized in September 2021, will not include ASX-listed CDIs and is subject to market conditions and stock prices.

The most recent analyst rating on (NWSA) stock is a Buy with a $38.00 price target. To see the full list of analyst forecasts on News Corp stock, see the NWSA Stock Forecast page.

Stock Buyback
News Corp Expands Stock Buyback Program by $1 Billion
Positive
Jul 16, 2025

News Corporation has updated its stock repurchase program, authorizing an additional $1 billion for the buyback of its Class A and Class B common stock as of July 15, 2025. This move aims to enhance shareholder value and reflects the company’s strategic financial management, with potential implications for its market positioning and stock performance.

The most recent analyst rating on (NWSA) stock is a Buy with a $37.00 price target. To see the full list of analyst forecasts on News Corp stock, see the NWSA Stock Forecast page.

Stock BuybackBusiness Operations and Strategy
News Corp Launches $1 Billion Stock Buyback Program
Positive
Jul 15, 2025

On July 15, 2025, News Corp announced a new $1 billion stock repurchase program for its Class A and Class B common stock, adding to an existing $1 billion program from September 2021, with $303 million remaining. This move is part of News Corp’s strategy to enhance shareholder value by accelerating repurchases, reflecting confidence in its financial health and growth potential, following a period of significant transformation and profitability.

The most recent analyst rating on (NWSA) stock is a Buy with a $37.00 price target. To see the full list of analyst forecasts on News Corp stock, see the NWSA Stock Forecast page.

Stock Buyback
News Corp Announces $1 Billion Stock Buyback Program
Positive
Jul 15, 2025

News Corporation announced a stock repurchase program allowing the company to buy back up to $1 billion of its Class A and Class B common stock. This initiative, disclosed in compliance with the Australian Securities Exchange rules, aims to enhance shareholder value by repurchasing shares from the open market or otherwise, subject to market conditions and other factors. The program reflects the company’s strategic financial management and commitment to returning value to its shareholders.

The most recent analyst rating on (NWSA) stock is a Buy with a $37.00 price target. To see the full list of analyst forecasts on News Corp stock, see the NWSA Stock Forecast page.

Stock BuybackBusiness Operations and Strategy
News Corp Announces $1 Billion Stock Buyback
Positive
May 30, 2025

News Corporation has announced a stock repurchase program allowing the company to buy back up to $1 billion of its Class A and Class B common stock. This initiative, reported on May 30, 2025, aims to enhance shareholder value and is subject to market conditions and stock price fluctuations. The repurchase will be conducted in the open market or otherwise, with no ASX-listed CDIs being repurchased. The buyback reflects the company’s strategic move to optimize its capital structure and potentially improve its market positioning.

The most recent analyst rating on (NWSA) stock is a Buy with a $34.00 price target. To see the full list of analyst forecasts on News Corp stock, see the NWSA Stock Forecast page.

Stock BuybackBusiness Operations and Strategy
News Corp Announces $1 Billion Stock Buyback
Positive
May 29, 2025

News Corporation has announced a stock repurchase program, authorizing the buyback of up to $1 billion of its Class A and Class B common stock. This initiative, aimed at enhancing shareholder value, is subject to market conditions and other factors, and does not require security holder approval. The program reflects the company’s strategic focus on optimizing its capital structure and returning value to shareholders.

The most recent analyst rating on (NWSA) stock is a Buy with a $34.00 price target. To see the full list of analyst forecasts on News Corp stock, see the NWSA Stock Forecast page.

Stock BuybackBusiness Operations and Strategy
News Corp Announces $1 Billion Stock Buyback
Positive
May 28, 2025

News Corporation has announced a stock repurchase program, authorizing the buyback of up to $1 billion of its Class A and Class B common stock. This initiative, disclosed on May 28, 2025, aims to enhance shareholder value and is subject to market conditions and stock price fluctuations. The buyback program does not require security holder approval and is part of the company’s strategy to strengthen its financial standing.

The most recent analyst rating on (NWSA) stock is a Buy with a $34.00 price target. To see the full list of analyst forecasts on News Corp stock, see the NWSA Stock Forecast page.

Stock BuybackBusiness Operations and Strategy
News Corp Updates Stock Repurchase Program
Positive
May 27, 2025

News Corporation has announced an update to its stock repurchase program, initially reported on September 22, 2021, allowing the company to buy back up to $1 billion of its Class A and Class B common stock. This move, aimed at enhancing shareholder value, does not require security holder approval and is subject to market conditions and other factors, reflecting the company’s strategic focus on optimizing its capital structure.

The most recent analyst rating on (NWSA) stock is a Buy with a $34.00 price target. To see the full list of analyst forecasts on News Corp stock, see the NWSA Stock Forecast page.

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.Date of analysis: Jul 18, 2025