New York Times Q2 revenue beats on digital subscription growth
NYT•Digital growth and outlook
Digital-only subscription revenues rose 16.4% year-over-year, driven by growth in digital-only subscribers and higher ARPU. Digital advertising revenues increased 20.7% year-over-year, primarily due to strong marketer demand and growth in advertising supply.
Operating costs rose 11.2% year-over-year, mainly due to higher compensation and benefits expenses and increased marketing and promotion costs.
The company repurchased 473,691 shares for $35.4 million during the quarter and expects lower cash tax payments of about $60 million for full-year 2026.
The current average analyst rating on the shares is "buy," with 7 "strong buy" or "buy" ratings, 5 "hold" ratings and no "sell" or "strong sell" ratings. The median 12-month price target is $82.00, about 8.5% above the August 4 closing price of $75.61. The stock recently traded at 25 times next 12-month earnings, versus a P/E of 27 three months ago.
Quarterly results beat expectations
The New York Times Company said second-quarter revenue rose 11% and beat analyst expectations, while adjusted earnings per share also came in above estimates.
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Revenue | Beat | $762.5 mln | $751.97 mln (6 Analysts) |
| Q2 Adjusted EPS | Beat | $0.69 | $0.67 (6 Analysts) |
| Q2 EPS | $0.57 | ||
| Q2 Adjusted Operating Profit | Beat | $155.3 mln | $136.19 mln (4 Analysts) |
