News Corporation (NWS) AI Stock Analysis
NWS AI stock analysis summary
AI ResearchNews Corporation is a global media and information services provider operating across publishing, digital real estate, Dow Jones, and video services. In FY2026, revenue increased 6.8% to $9.03B, accompanied by net income of $573.0M. The stock trades at a trailing P/E of 31.9x with a moderate debt-to-equity ratio of 0.34.
- Market cap
- $17.71B
- Revenue (TTM)
- $9.03B
- P/E
- 31.9x fwd 24.4x
- 1Y return
- 12.3% S&P 500 16.8%
- Avg. target
- $31.14 -5.3% vs last close
Bull case
- FY2026 free cash flow reached $811.0M, supporting $782.0M in share buybacks and a 6.1% share count reduction over five years.
- Gross margins expanded steadily from 51.1% in FY2022 to 56.9% in FY2026.
- Analyst consensus expects current fiscal year EPS to grow 11.8% to $1.32 on revenue of $9.41B.
Bear case
- The stock trades at a trailing P/E of 31.9x, commanding a sizable premium over the peer median of 17.1x.
- Quarterly earnings for the period ended June 30, 2026, fell 74.9% year-over-year.
- Long-term top-line expansion remains muted, with a 5-year revenue CAGR of -0.7% between FY2021 and FY2026.
What News Corp does
News Corporation is a global media and information services conglomerate operating through six business segments: Digital Real Estate Services, Subscription Video Services, Dow Jones, Book Publishing, News Media, and Other. Its portfolio includes prominent financial and general news brands such as The Wall Street Journal, Barron's, MarketWatch, Investor's Business Daily, The Australian, The Times, and the New York Post. The company also produces book publications across various genres, delivers sports and entertainment programming through pay-TV and streaming platforms, and provides digital real estate listings and advertising solutions.
Growth and profitability
In FY2026, News Corporation generated revenue of $9.03B, marking a 6.8% increase from $8.45B in FY2025. Gross margin expanded to 56.9% from 56.2% in the previous year, while operating margin fell to 11.4% from 16.7%. Net income rose to $573.0M from $464.0M in FY2025, yielding an EPS of $1.18. Over the five years from FY2021 to FY2026, revenue recorded a CAGR of -0.7%. For the latest quarter ended June 30, 2026, quarterly revenue grew 10.8% year-over-year, while quarterly earnings declined 74.9%.
Balance sheet and cash flow
As of June 30, 2026, News Corporation held $2.10B in cash and short-term investments alongside total debt of $2.92B, resulting in net debt of $820.0M. Shareholders' equity stood at $8.53B, supporting a conservative debt-to-equity ratio of 0.34 and a current ratio of 1.62. During FY2026, the company produced $1.24B in operating cash flow and $811.0M in free cash flow. News Corporation allocated $426.0M to capital expenditures, $782.0M to share buybacks, and $204.0M to dividend distributions.
Valuation and performance
News Corporation trades at a trailing P/E of 31.9x and a forward P/E of 24.4x, both above the median of its S&P 500 Communication Services peers, which stand at 17.1x and 13.8x, respectively. Its enterprise value to EBITDA ratio is 10.1x, below the peer median of 11.7x. Over the past year, the stock returned 12.3%, trailing the 16.8% return of the S&P 500. Over a five-year period, its return of 42.1% compares to 83.0% for the broader index.
NWS dividend
News Corporation pays a semiannual dividend with an annualized forward rate of $0.20 per share, yielding 0.61%. The dividend is supported by a payout ratio of 17.0%. The company has maintained consecutive dividend payments for 12 years, though its 5-year annualized dividend growth rate stands at 0.0%.
What analysts expect
Wall Street analysts hold 5 Strong Buy, 2 Buy, and 1 Hold ratings on News Corporation, with no Sell or Strong Sell recommendations. The mean price target of $31.14 implies a 5.3% discount to the last close of $32.88. For the current fiscal year ending June 30, 2027, consensus estimates project EPS of $1.32 on revenue of $9.41B. The company beat EPS estimates in each of the last 4 quarters, with its next earnings release scheduled for November 5, 2026.
Key risks and what to watch
- Operating margin contracted from 16.7% in FY2025 to 11.4% in FY2026 despite overall top-line gains.
- The analyst mean price target of $31.14 sits 5.3% below the recent closing price of $32.88.
- The company holds $2.92B in total debt, resulting in net debt of $820.0M.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this NWS AI stock analysis
This page is an AI-written research summary of News Corporation (NWS). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: NWS income statement, NWS balance sheet, NWS key metrics, NWS analyst forecast, NWS chart. See the NWS stock overview for the latest quote and news.
NWS AI stock analysis FAQ
What is News Corporation's dividend yield and payment schedule?
News Corporation pays an annual forward dividend of $0.20 per share on a semiannual schedule, resulting in a dividend yield of 0.61% with a 17.0% payout ratio.
How did News Corporation perform financially in FY2026?
In FY2026, revenue increased 6.8% to $9.03B, and net income rose to $573.0M from $464.0M in FY2025. Free cash flow totaled $811.0M.
What do analysts expect for News Corporation's future earnings?
For the fiscal year ending June 30, 2027, analysts project EPS of $1.32 and revenue of $9.41B. For the subsequent year, EPS is projected to reach $1.51 on revenue of $9.74B.
How does News Corporation's valuation compare to sector peers?
News Corporation has a trailing P/E of 31.9x compared to the median of 17.1x for its S&P 500 Communication Services peers. Its EV to EBITDA ratio stands at 10.1x compared to the peer median of 11.7x.