News Corporation Reports 6% Revenue Growth, Citi Lowers Target to $39
News Corporation’s FQ2 revenue rose 6% to $2.4 billion with segment EBITDA up 9% to $521 million, while adjusted EPS climbed to $0.40 and margins improved to 22.1%. Citi cut its price target to $39 from $40 after Morgan Stanley lowered its target to $32.40, both keeping bullish ratings.
1. Price Target Revisions
Citi reduced its price target on News Corporation from $40 to $39 while retaining a Buy rating, following Morgan Stanley’s earlier cut from $38 to $32.40 with an Overweight recommendation. Both firms reaffirmed their positive outlook despite marginal target adjustments.
2. FQ2 2026 Financial Results
In the second quarter of fiscal 2026, total revenue increased 6% to $2.4 billion and segment EBITDA rose 9% to $521 million. Net income from continuing operations declined 21% to $242 million due to an $87 million prior-year gain, while adjusted EPS improved to $0.40 and overall profitability margins expanded to 22.1%.
3. Segment Performance Highlights
Dow Jones achieved record digital advertising revenue of $87 million, and Digital Real Estate Services saw a 10% revenue gain at Realtor.com. The News Media segment reported flat revenues and a 5% drop in EBITDA, while Book Publishing grew 6% to $633 million but incurred a $16 million one-time inventory charge.
4. Analyst Outlook
Analysts updated their estimates after reviewing first-half results but left their fundamental positive thesis unchanged. The modest price target reductions reflect near-term uncertainties in print advertising and inventory adjustments, while the overall growth trajectory remains intact.