How Does News Corporation(NASDAQ:NWS) Achieve Record Q1 Fiscal 2027 Earnings With 19% EBITDA Growth?

Sonal Goyal

05 November 2026 07:54 PM AEDT

How Does News Corporation(NASDAQ:NWS) Achieve Record Q1 Fiscal 2027 Earnings With 19% EBITDA Growth?

Image Source: Shutterstock

You are reading a free article with opinions that may differ from the recommendation given by Kalkine in its paid research reports. Become a Kalkine member today to get access to our research reports, in-depth technical and fundamental research. Learn more

Start Your Free Trial Now!

Key Highlights

• Q1 FY2027 Revenue rose 6% to $2.28 billion with Total Segment EBITDA up 19% to $403 million

• Net Income increased 43% to $215 million; EPS of $0.29 versus $0.20 in the prior year

• Dow Jones revenues grew 8%, driven by circulation, licensing, and Dow Jones Risk & Compliance up 11%

• REA Group revenues rose 13%, while Book Publishing delivered 9% revenue growth

News Corporation(NASDAQ:NWS), the global diversified media and information services company, reported record first-quarter fiscal 2027 results on November 4, 2026. The quarter, covering the three months ended September 30, 2026, marked the company's fourteenth consecutive quarter of year-over-year profitability growth, with each of its principal growth engines contributing to the performance.

Revenue and Profitability

Total revenues for Q1 FY2027 reached $2.28 billion, a 6% increase from $2.14 billion in the prior-year quarter. Adjusted revenues, which strip out the effects of foreign currency, acquisitions, and divestitures, increased 4%. Foreign currency fluctuations contributed a positive impact of $43 million, or 2 percentage points. Revenue growth was driven primarily by the Digital Real Estate Services, Book Publishing, and Dow Jones segments.

Net income for the quarter was $215 million, a 43% increase from $150 million a year earlier, benefiting from higher Total Segment EBITDA and a gain related to the divestiture of REA India's remaining business. Total Segment EBITDA reached $403 million, up 19% from $340 million. Reported EPS was $0.29 compared to $0.20, while Adjusted EPS came in at $0.28 versus $0.22 in the prior year.

CEO Robert Thomson described the company as having been transformed into a digitally driven, higher-margin business, adding that it is positioned for further growth in the AI era with its content portfolio.

Segment Breakdown

Dow Jones revenues increased 8% year over year, with growth across circulation and licensing revenue. Dow Jones Risk & Compliance grew 11%, and Dow Jones Energy expanded 8%. The segment continues to benefit from the monetisation of its data and content across enterprise and regulatory compliance channels.

REA Group, the company's digital real estate services platform in Australia, reported 13% revenue growth for the quarter, driven by positive foreign exchange and double-digit growth in controllable buy yield. Move, the operator of Realtor.com, grew revenues 5% with improved operational efficiencies, contributing to scaling profitability within the real estate digital services vertical.

Book Publishing delivered 9% revenue growth, supported by what the company described as continued growth in digital revenues. This segment has benefited from the expansion of digital and audio formats alongside traditional print distribution.

AI and Intellectual Property

Thomson addressed the company's positioning in the AI landscape, noting that while data centres, chips, and infrastructure are necessary components, high-quality content is the essence of AI. News Corp has existing partnerships with OpenAI and Meta that recognize the value of its content. Thomson stated the company remains optimistic that other platforms will choose to compensate content creators, adding that News Corp will "woo and sue" to protect its intellectual property rights.

Capital Allocation

News Corp continues to prioritise growth Investment alongside cost discipline. The company's Margin expansion during the quarter — with Total Segment EBITDA growing at more than three times the rate of revenue — reflects the Operating Leverage inherent in its digital transition. Management indicated it will pursue increased profitability through prudent Capital stewardship aimed at creating value across the Shareholder base.

The Big Picture

News Corporation's Q1 FY2027 results illustrate a company that has successfully repositioned itself around high-growth, digitally driven segments. The combination of Dow Jones data products, REA Group's real estate platform, and expanding digital book revenues provides multiple avenues for continued growth. The 19% EBITDA growth and 43% net income increase set a pace that, if sustained, would position fiscal 2027 as one of the company's most productive years in its current corporate configuration.

FAQs

Q: What was News Corporation's revenue in Q1 FY2027?

A: Total revenues were $2.28 billion, a 6% increase from $2.14 billion in the prior-year quarter.

Q: How much did net income grow in Q1 FY2027?

A: Net income increased 43% to $215 million, with EPS of $0.29 compared to $0.20 a year earlier.

Q: Which segment grew the fastest?

A: REA Group grew revenues 13%, while Dow Jones grew 8% and Book Publishing delivered 9% growth.

Q: What is News Corp's AI strategy?

A: The company has content partnerships with OpenAI and Meta and is pursuing compensation arrangements with other platforms to protect and monetise its intellectual property in the AI era.

Download Free Report – Explore 3 Stock Ideas & Industry Insights

Unlock 3 stock ideas and key industry insights in our free report. This information is general in nature and does not consider your personal objectives, financial situation, or needs. It is not financial advice.

All investments involve risk—consider independent advice before making any investment decisions.

View 3 Research Reports

Disclaimer:

This article (“Article”) has been prepared by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and its related bodies corporate who are authorised to provide general financial product advice. Kalkine.com.au and its associated pages are published by Kalkine.

Any information/advice provided in this article is general in nature and does not take into account your objectives, financial situation or needs. You should therefore consider whether the information is appropriate for your objectives, financial situation and needs before acting upon it.

There may be a Product Disclosure Statement, Information Memorandum or other offer document (“Offer Document”) for the securities or other financial products referred to in Kalkine articles. You should obtain a copy of the Offer Document and consider it before making any decision about whether to acquire the security or financial product.

Kalkine strongly recommends that you seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) before acting on any advice/information in this Article or on the Kalkine website. Not all investments are appropriate for all people.

The information in this Article and on Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of the information contained in its articles (including this Article), newsletters and websites. All information represents our views at the date of publication and may change without notice.

The information in this Article does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products.

Kalkine does not issue, sell or deal in any financial products.

This Article may contain information on past performance of particular investments. Please note past performance is neither an indicator nor a guarantee of future performance.

To the extent permitted by law, and excluding any dishonesty or gross negligence by Kalkine, Kalkine disclaims and excludes all liability for any direct, indirect, implied, punitive, special, incidental or other consequential loss or damage arising from the use of or reliance on this Article, the Kalkine website and any information published on the Kalkine website without any warranties or representations by Kalkine to you. To the extent the law prohibits or limits this exclusion, Kalkine limits its liability to the resupply of services.

Please also read our Terms & Conditions and Financial Services Guide for further information.

Employees and/or associates of Kalkine and its related entities may hold interests in the securities or other financial products covered in this Article or on the Kalkine website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.

Some of the images/music that may be used in the Article are copyright to their respective owner(s). Kalkine does not claim ownership of any of the pictures displayed/music used in the Article unless stated otherwise. The images/music that may be used in the Article are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.