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News Corp Reports Strong Q2 2026 with 4% Revenue Increase

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  Published in Stocks and Investing on Thursday, February 5th 2026 at 22:04 GMT by Seeking Alpha
      Locales: UNITED STATES, AUSTRALIA, UNITED KINGDOM

New York, NY - February 6, 2026 - News Corporation (NWSA) today announced its second quarter 2026 earnings, showcasing a 4% year-over-year revenue increase to $2.6 billion. The media conglomerate, led by CEO Robert Thomson and CFO Louis Burns, highlighted the continued strength of its book publishing division and a successful transition towards a digitally-focused revenue model, with digital revenue now accounting for 75% of total revenue. Earnings per share reached $0.50, exceeding the $0.45 reported in the prior year's second quarter.

The earnings call, held this morning, revealed a company actively adapting to a complex global environment marked by geopolitical uncertainty and persistent macroeconomic headwinds. While acknowledging the pressures of inflation and rising interest rates on consumer spending, Thomson expressed confidence in News Corp's ability to maintain its performance trajectory.

Book Publishing Remains a Cornerstone

The continued success of News Corp's book publishing segment was a central theme of the call. Revenue in this area surged by 12% year-over-year, fueled by strong demand for both physical and digital books. Thomson noted the positive performance across various genres, indicating a broad appetite for content. This sustained growth suggests that despite the rise of digital media, print books continue to hold a significant place in the market, complementing the increasing popularity of eBooks and audiobooks.

This success isn't simply about volume, but also about quality and strategic curation. News Corp's publishing houses are known for identifying and nurturing both established and emerging authors, building a portfolio that consistently delivers bestsellers and critically acclaimed titles. The company appears to be effectively leveraging its editorial expertise and distribution network to capitalize on the enduring appeal of the written word.

Digital Transformation Gains Momentum

The company's commitment to digital transformation is clearly bearing fruit. Digital subscription revenue increased by 8% across its news and information services, demonstrating a growing base of loyal digital readers. This growth highlights the success of News Corp's strategy to prioritize premium content and offer compelling value propositions to subscribers. The focus on subscription models offers a degree of revenue predictability that is increasingly valuable in a volatile advertising market.

However, the digital landscape is also fiercely competitive. News Corp faces challenges from a multitude of online news sources, social media platforms, and aggregator websites. To maintain its position, the company is actively diversifying its revenue streams and exploring new monetization opportunities, including licensing agreements and innovative content formats. The need to stay ahead of the curve in terms of technological innovation and content delivery will be crucial for sustained success.

Cost Management & Future Outlook

News Corp isn't simply relying on top-line growth. Louis Burns emphasized the implementation of cost management initiatives designed to streamline operations, reduce headcount, and renegotiate contracts. These efforts are projected to generate significant savings in the coming quarters, bolstering the company's bottom line. Such measures are often necessary to offset rising costs and maintain profitability in challenging economic times.

Despite the positive Q2 results, the company remains cautiously optimistic about the future. The macroeconomic environment is expected to remain uncertain, and geopolitical tensions continue to pose risks. However, News Corp is investing in new technologies and content formats to cater to evolving consumer needs. This includes exploring opportunities in areas like immersive storytelling, data analytics, and personalized content delivery.

Key Takeaways from Q&A:

• Continued Strength in Book Publishing: The company anticipates robust performance in the book publishing segment, driven by persistent demand for both print and digital formats. This suggests that the company is well-positioned to benefit from the ongoing cultural interest in reading.
• Adapting to Digital Advertising: News Corp is actively mitigating the challenges in the digital advertising market by diversifying revenue streams and focusing on high-quality, premium content. This is a sensible approach given the increasing fragmentation of the digital advertising landscape.
• Disciplined Cost Control: The implementation of cost-cutting initiatives demonstrates a commitment to financial discipline and maximizing shareholder value.