News Corp (NWS, NWSA) reported net income of US$ 215 million in the first fiscal quarter of 2027, ended September 30, 2026, up 43% from US$ 150 million in the same period of the previous year. The company attributes the increase to higher segment EBITDA and a gain from the sale of the remaining REA India business, partly offset by higher income tax expense.
Revenue totaled US$ 2.28 billion, up 6% from US$ 2.14 billion a year earlier, driven by Digital Real Estate Services, Book Publishing and Dow Jones. Foreign exchange had a positive effect of US$ 43 million. Adjusted revenue (non-GAAP, excluding foreign exchange, acquisitions and business divestitures) grew 4%.
Earnings per share (EPS) were US$ 0.29, compared with US$ 0.20 a year earlier. Adjusted EPS (non-GAAP, excluding items such as restructuring and other gains) was US$ 0.28, compared with US$ 0.22. Total segment EBITDA (earnings before interest, taxes, depreciation and amortization) was US$ 403 million, up 19% from US$ 340 million. Adjusted segment EBITDA rose 13% to US$ 392 million.
By segment, Dow Jones revenue rose 8% to US$ 630 million; Digital Real Estate Services, 10% to US$ 529 million; Book Publishing, 9% to US$ 582 million. News Media fell 1% to US$ 540 million, and its EBITDA declined 40% to US$ 18 million. Dow Jones had about 6.9 million average subscriptions, up 8%.
Free cash flow (non-GAAP) was negative US$ 89 million, compared with positive US$ 4 million a year earlier, with operating cash flow of US$ 13 million and investments of US$ 102 million. During the quarter, the company repurchased US$ 166 million in shares and paid US$ 61 million in dividends. Cash stood at US$ 1.78 billion at the end of the period.
