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News Corp. Reports Strong Q2 2026 with Digital Subscription Surge

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  Published in Stocks and Investing on Thursday, February 5th 2026 at 17:12 GMT by TheWrap
      Locales: UNITED STATES, AUSTRALIA, UNITED KINGDOM

NEW YORK - News Corp. today announced its second quarter fiscal 2026 results, showcasing a continued, albeit evolving, success story in the rapidly changing media landscape. The company, a global media conglomerate encompassing iconic brands like The Wall Street Journal, The New York Post, The Times, and real estate listings giant REA Group, reported a net profit of $215 million - a notable increase from the $185 million recorded in the same quarter last year. This positive performance, however, isn't a simple return to form, but a clear illustration of a strategic pivot away from traditional revenue streams and towards a digitally-focused future.

The bedrock of this success is the continued growth of digital subscriptions. News Corp. now boasts a record 5.2 million digital subscribers, a robust 12% increase year-over-year. This figure represents more than just a number; it signifies a fundamental shift in how people consume news and information. Revenue from News and Information Services reached $987 million, up 9%, demonstrating the increasing financial weight of these subscriptions. While many legacy media companies struggle to adapt, News Corp. appears to be successfully navigating this transition.

However, the positive trajectory of digital revenue isn't masking the ongoing decline of print. Print advertising revenue plummeted 13% to $350 million. This drop underscores the relentless pressure facing print publications as advertisers increasingly shift their budgets to digital platforms offering more targeted and measurable results. News Corp.'s ability to mitigate the impact of this decline through subscription growth is crucial, but the trend indicates that print will continue to be a diminishing contributor to overall revenue.

CEO Robert Thomson, during the investor call, emphasized this evolving consumer behavior. "We're seeing a real shift in consumer behavior towards digital news consumption," he stated. "Our focus on building a loyal digital subscriber base is paying off." This "focus" isn't merely rhetorical; it's backed by substantial investment in digital platforms, content creation, and data analytics to understand and cater to subscriber preferences.

Beyond the core News and Information Services segment, other areas of the business are contributing positively. Dow Jones saw a 7% revenue increase, fueled by - unsurprisingly - subscription gains. REA Group, a dominant player in Australian and Asian real estate listings, delivered an impressive 15% revenue jump, showcasing the strength of its market position and digital business model. This diversification, while not entirely offsetting the print decline, provides a degree of stability and growth potential.

Despite the overall positive outlook, challenges remain. News Corp.'s UK operations continue to lag, reporting a $15 million loss. This highlights the difficulties of navigating the unique challenges of the UK market, where print circulation and advertising face particularly strong headwinds. The company will likely need to implement more aggressive restructuring measures in the UK to return the division to profitability.

To improve overall profitability, News Corp. has been aggressively pursuing cost-cutting initiatives. Over the past several quarters, these measures - including layoffs and office closures - have resulted in a 5% reduction in operating expenses. While these cuts are necessary for streamlining operations, they also carry the risk of impacting content quality and employee morale. Striking the right balance between cost control and investment in the future is a delicate task.

Looking forward, News Corp. is doubling down on its digital strategy. The company plans to further invest in its digital platforms, expand its content offerings, and explore new revenue streams, such as premium content tiers and personalized experiences. Thomson expressed confidence in the company's ability to sustain growth, stating, "We believe we have a long runway for digital subscription growth," and "We're confident that we can continue to deliver strong results for our shareholders."

The long-term success of this strategy hinges on several factors, including the ability to attract and retain subscribers in an increasingly competitive digital landscape, the successful diversification of revenue streams, and the effective management of costs. However, today's results suggest that News Corp. is well-positioned to navigate the challenges and capitalize on the opportunities presented by the digital revolution.