- In the third quarter and nine months ended March 31, 2026, News Corporation reported higher sales and revenue year on year, but lower net income and earnings per share overall, even as earnings from continuing operations per share edged up to US$0.16 for the quarter and US$0.70 for the nine months.
- The company also continued executing on its up to US$1.00 billion share repurchase program, signaling an ongoing focus on capital returns despite the mixed earnings picture.
- Next, we’ll examine how the combination of rising revenue and the ongoing US$1.00 billion buyback program affects News Corporation’s investment narrative.
Capitalize on the AI infrastructure supercycle with our selection of the 43 best 'picks and shovels' of the AI gold rush converting record-breaking demand into massive cash flow.
News Investment Narrative Recap
To own News Corporation, you have to believe its mix of premium content, digital real estate and professional information can compound value even when reported earnings are choppy. The latest quarter fits that pattern: revenue rose year on year, but net income and EPS slipped, so this update does not materially change the near term earnings risk from cyclically exposed segments or the key catalyst of higher margin digital and data revenue.
The most relevant recent announcement here is the ongoing up to US$1.00 billion share repurchase program, which continued alongside softer bottom line trends. For investors, that pairing matters: if cash flows can support both buybacks and investment in higher quality digital businesses, the repurchases may amplify any future improvement in earnings per share, but if profit pressure persists they could instead highlight execution and cyclical risks in the portfolio.
Yet behind the revenue growth and buybacks, there is a risk investors should be aware of if AI content and legal pressures start to...
Read the full narrative on News (it's free!)
News' narrative projects $9.7 billion revenue and $745.9 million earnings by 2029. This requires 4.1% yearly revenue growth and roughly a $307 million earnings increase from $439.0 million today.
Uncover how News' forecasts yield a $33.92 fair value, a 29% upside to its current price.
Exploring Other Perspectives
Some of the most optimistic analysts were assuming News could lift earnings to about US$1.2 billion by 2029, yet this quarter’s softer net income and ongoing legal and AI related risks show how far reality can diverge from those forecasts, so you should weigh these different viewpoints carefully.
Explore 2 other fair value estimates on News - why the stock might be worth just $33.92!
The Verdict Is Yours
Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.
- A great starting point for your News research is our analysis highlighting 3 key rewards that could impact your investment decision.
- Our free News research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate News' overall financial health at a glance.
Seeking Other Investments?
Our top stock finds are flying under the radar-for now. Get in early:
- Uncover the next big thing with 27 elite penny stocks that balance risk and reward.
- The future of work is here. Discover the 32 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation.
- We've uncovered the 12 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com