News Corporation’s Growth Outlook: Key Earnings Insights Ahead of Q2 Report
New York-based News Corporation (NWS), a prominent global media and information services firm, is set to release its Q2 earnings on Wednesday, February 5. With a market capitalization of $17.3 billion, it is known for delivering influential content across various sectors, including news, publishing, digital real estate, and subscription video services. The company’s impact on public discourse is significant, providing essential information to millions globally.
Over the past year, News Corporation’s stock has risen 20%. However, this performance falls short compared to the broader S&P 500 Index, which gained 22.1%, and the Communication Services Select Sector SPDR ETF Fund (XLC), which saw a 29.4% increase during the same period.
After the release of its Q1 2025 earnings on November 7, NWS shares experienced a more than 1% increase. The company reported a 3.1% rise in year-over-year revenue, totaling $2.6 billion. This growth was attributed to strong performance in Digital Real Estate Services, Book Publishing, and the Dow Jones segments. Notably, the REA Group achieved a record revenue of $318 million, marking a 22% increase from last year, driven by robust activity in the Australian residential market.
Additionally, Dow Jones reported an 8% rise in revenue, thanks to a 16% increase in Risk & Compliance and an 11% growth in Dow Jones Energy. Moreover, Book Publishing saw its revenue increase by 4%, and the Segment EBITDA rose by 25%, which was partly fueled by a 15% boost in digital book sales as well as strong backlist performance.
Analysts remain optimistic about News Corporation’s stock, with a consensus rating of “Strong Buy.” The average price target of $41 suggests a potential upside of 34.8% from current price levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
