Revenue growth stabilized to 10.8% in 2026Q4, but gross margin volatility (50.7% to 73.0% over the last ten quarters) and inconsistent operating margins (7.8% to 21.5%) raise questions about earnings durability.
News Corporation (NWS) annual income statement — 16-year revenue, gross profit & net income history
| Metric | Jun'26 | Jun'25 | Jun'24 | Jun'23 | Jun'22 | Jun'21 | Jun'20 | Jun'19 | Jun'18 | Jun'17 | Jun'16 | Jun'15 | Jun'14 | Jun'13 | Jun'12 | Jun'11 |
|---|
| Sales/Revenue | 9.03B | 8.45B | 8.25B | 8.01B | 10.38B | 9.36B | 9.01B | 10.07B | 9.02B | 8.14B | 8.29B | 8.63B | 8.57B | 8.89B | 8.65B | 9.1B |
| Revenue Growth % | 6.82% | 2.42% | 3% | -22.85% | 10.97% | 3.89% | -10.58% | 11.64% | 10.87% | -1.85% | -3.95% | 0.69% | -3.57% | 2.74% | -4.85% | - |
| Cost of Goods Sold | 3.89B | 3.7B | 3.78B | 3.89B | 5.08B | 4.78B | 4.93B | 6.28B | 5.37B | 4.98B | 5.23B | 4.95B | 5.07B | 5.42B | 0 | 0 |
| COGS % of Revenue | 43.11% | 43.81% | 45.84% | 48.5% | 48.88% | 51.07% | 54.7% | 62.38% | 59.55% | 61.16% | 63.11% | 57.36% | 59.18% | 60.96% | - | - |
| Gross Profit | 5.14B | 4.75B | 4.47B | 4.13B | 5.31B | 4.58B | 4.08B | 3.79B | 3.65B | 3.16B | 3.06B | 3.68B | 3.5B | 3.47B | 8.65B | 9.1B |
| Gross Margin % | 56.89% | 56.19% | 54.16% | 51.5% | 51.12% | 48.93% | 45.3% | 37.62% | 40.45% | 38.84% | 36.89% | 42.64% | 40.82% | 39.04% | 100% | 100% |
| Gross Profit Growth % | 8.15% | 6.27% | 8.31% | -22.28% | 15.94% | 12.2% | 7.68% | 3.84% | 15.47% | 3.33% | -16.9% | 5.17% | 0.84% | -59.89% | -4.85% | - |
| Operating Expenses | 4.11B | 3.33B | 3.25B | 3.03B | 3.63B | 3.29B | 3.06B | 9.49B | 8.42B | 7.7B | 7.96B | 8.31B | 8.38B | 8.75B | 8.36B | 8.31B |
| OpEx % of Revenue | 45.49% | 39.45% | 39.35% | 37.86% | 34.94% | 35.19% | 34.03% | 94.19% | 93.35% | 94.64% | 95.94% | 96.27% | 97.76% | 98.43% | 96.55% | 91.39% |
| Selling, General & Admin | 3.51B | 3.3B | 0 | 0 | 0 | 0 | 0 | 3.21B | 3.05B | 2.73B | 2.72B | 2.76B | 2.67B | 2.78B | 2.75B | 2.65B |
| SG&A % of Revenue | 38.87% | 39.06% | - | - | - | - | - | 31.84% | 33.79% | 33.48% | 32.83% | 31.92% | 31.08% | 31.3% | 31.78% | 29.11% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 598M | 33M | 3.25B | 3.03B | 3.63B | 3.29B | 3.06B | 6.28B | -325M | 132M | 18M | 75M | -653M | -3M | -7M | 4M |
| Operating Income | 1.03B | 1.42B | 1.22B | 1.09B | 1.68B | 1.29B | 1.02B | 773M | 600M | 436M | 337M | 322M | -529M | 140M | 299M | 783M |
| Operating Margin % | 11.4% | 16.74% | 14.81% | 13.64% | 16.19% | 13.74% | 11.28% | 7.67% | 6.65% | 5.36% | 4.06% | 3.73% | -6.17% | 1.57% | 3.45% | 8.61% |
| Operating Income Growth % | -27.28% | 15.79% | 11.8% | -34.98% | 30.72% | 26.57% | 31.44% | 28.83% | 37.61% | 29.38% | 4.66% | 160.87% | -477.86% | -53.18% | -61.81% | - |
| EBITDA | 1.51B | 1.59B | 1.41B | 1.29B | 2.11B | 1.72B | 1.43B | 1.43B | 1.07B | 885M | 842M | 852M | 49M | 688M | 782M | 1.21B |
| EBITDA Margin % | 16.77% | 18.85% | 17.09% | 16.14% | 20.28% | 18.34% | 15.86% | 14.21% | 11.88% | 10.87% | 10.15% | 9.87% | 0.57% | 7.74% | 9.04% | 13.34% |
| EBITDA Growth % | -4.96% | 12.98% | 9.05% | -38.6% | 22.73% | 20.08% | -0.21% | 33.58% | 21.13% | 5.11% | -1.17% | 1638.78% | -92.88% | -12.02% | -35.53% | - |
| D&A (Non-Cash Add-back) | 485M | 178M | 188M | 200M | 425M | 430M | 413M | 659M | 472M | 449M | 505M | 530M | 578M | 548M | 483M | 430M |
| EBIT | 1.05B | 956M | 782M | 678M | 993M | 606M | 372M | 413M | 599M | 433M | 337M | 447M | -397M | 140M | 299M | 783M |
| Net Interest Income | 29M | -10M | -85M | -84M | -105M | -37M | -25M | -59M | -7M | 39M | 43M | 56M | 68M | 77M | 56M | 47M |
| Interest Income | 29M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 39M | 43M | 56M | 68M | 77M | 56M | 47M |
| Interest Expense | 0 | 10M | 85M | 84M | 105M | 37M | 25M | 59M | 7M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 17M | -492M | -637M | -713M | -869M | -836M | -2.54B | -231M | -1.69B | -1.05B | -156M | -443M | -589M | 33M | -2.68B | 178M |
| Pretax Income | 1.05B | 923M | 585M | 380M | 812M | 450M | -1.52B | 354M | -1.09B | -615M | 181M | 56M | -397M | 173M | -2.38B | 961M |
| Pretax Margin % | 11.59% | 10.92% | 7.09% | 4.74% | 7.82% | 4.81% | -16.92% | 3.51% | -12.07% | -7.56% | 2.18% | 0.65% | -4.63% | 1.95% | -27.47% | 10.57% |
| Income Tax | 303M | 275M | 206M | 152M | 52M | 61M | 21M | 126M | 355M | 28M | -54M | 134M | -691M | -374M | -337M | 257M |
| Effective Tax Rate % | 28.97% | 29.79% | 35.21% | 40% | 6.4% | 13.56% | -1.38% | 35.59% | -32.6% | -4.55% | -29.83% | 239.29% | 174.06% | -216.18% | 14.18% | 26.74% |
| Net Income | 573M | 464M | 266M | 149M | 623M | 330M | -1.27B | 228M | -1.51B | -738M | 179M | -147M | 239M | 506M | -2.08B | 678M |
| Net Margin % | 6.35% | 5.49% | 3.22% | 1.86% | 6% | 3.53% | -14.09% | 2.26% | -16.78% | -9.07% | 2.16% | -1.7% | 2.79% | 5.69% | -23.98% | 7.45% |
| Net Income Growth % | 23.49% | 74.44% | 78.52% | -76.08% | 88.79% | 126% | -656.58% | 115.06% | -105.15% | -512.29% | 221.77% | -161.51% | -52.77% | 124.39% | -406.05% | - |
| Net Income (Continuing) | 743M | 648M | 379M | 228M | 760M | 389M | -1.54B | 228M | -1.44B | -643M | 235M | 367M | 436M | 547M | -2.04B | 704M |
| Discontinued Operations | 0 | -16M | -3M | -14M | 0 | 0 | 0 | 0 | 0 | 0 | 15M | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 710M | 615M | 891M | 881M | 921M | 935M | 807M | 1.17B | 1.19B | 284M | 218M | 171M | 156M | 118M | 0 | 0 |
| EPS (Diluted) | 1.03 | 0.81 | 0.47 | 0.26 | 1.05 | 0.56 | -2.63 | 0.39 | -2.60 | -1.27 | 0.30 | -0.25 | 0.41 | 0.87 | -3.59 | 1.17 |
| EPS Growth % | 27.16% | 72.34% | 80.77% | -75.24% | 87.5% | 121.29% | -774.36% | 115% | -104.72% | -523.33% | 220% | -160.98% | -52.87% | 124.23% | -406.84% | - |
| EPS (Basic) | 1.03 | 0.82 | 0.47 | 0.26 | 1.06 | 0.56 | -2.63 | 0.39 | -2.60 | -1.27 | 0.30 | -0.25 | 0.41 | 0.87 | -3.59 | 1.17 |
| Diluted Shares Outstanding | 558.4M | 569.9M | 573.5M | 578.8M | 592.5M | 593.4M | 587.9M | 587.9M | 583M | 581M | 583M | 581M | 580M | 579.4M | 578.5M | 578.5M |
| Basic Shares Outstanding | 556.5M | 567.7M | 571.2M | 576.4M | 589.5M | 590.4M | 587.9M | 584.7M | 582.7M | 581M | 581M | 581M | 579M | 578.8M | 578.5M | 578.5M |
| Dividend Payout Ratio | 35.6% | 39.87% | 64.66% | 116.78% | 28.09% | 49.39% | - | 70.61% | - | - | 82.12% | - | 10.04% | 3.95% | - | 1.47% |
Quick answers to the most common questions about buying NWS stock.
For fiscal year 2026, News Corporation (NWS) reported total revenue of $9.03B. This represents a 0.7% decline compared to $9.10B in 2011.
News Corporation (NWS) is profitable, generating $573.0M in net income for the fiscal year ending 2026 with a net profit margin of 6.3%.
News Corporation (NWS) reported an operating income of $1.03B, resulting in an operating profit margin of 11.4%. This margin reflects the operational efficiency of the business before interest and taxes.
News Corporation (NWS) generated $5.14B in gross profit for the year, representing a gross profit margin of 56.9%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Revenue growth sustainability and margin volatility
Metrics are mathematically derived from official filings.
Revenue Growth Stabilizing After Cyclical Dip
News Corp's revenue growth has recovered from a -18.5% contraction in 2024Q3 to a 10.8% expansion in 2026Q4, according to the latest quarterly data, indicating a cyclical rebound.
The sharp deceleration in fiscal 2024 (with negative growth in Q3 and Q4) appears to have bottomed out, as growth turned positive in fiscal 2025 and accelerated through fiscal 2026. The most recent quarter's 10.8% growth is the strongest in the series, suggesting momentum may be building. However, the growth is uneven across quarters, with 2026Q2 at 5.5% and 2026Q1 at 2.3%, implying that the acceleration is not yet broad-based. Investors should monitor whether this uptick is driven by cyclical factors or structural gains in digital publishing and subscription revenues.
Gross Margin Volatility Signals Cost Pressures
Gross margin swung from 73.0% in 2026Q4 to 50.7% in 2026Q1, as reported in financial statements, highlighting significant quarterly volatility that may reflect changing revenue mix and input costs.
The gross margin in 2026Q4 (73.0%) is an outlier compared to the typical 50-58% range seen in other quarters, suggesting a one-time benefit or a favorable revenue mix shift. The more consistent range of 50-58% aligns with peer NYT's 50.8% but is below News Corp's own 56.9% trailing average. This volatility may indicate that the company's cost of goods sold is not well controlled, or that revenue composition varies significantly between quarters (e.g., higher-margin digital vs. lower-margin print). The 2026Q4 spike warrants investigation into whether it is sustainable or a seasonal anomaly.
Operating Leverage Inconsistent Across Quarters
Operating margin ranged from 7.8% to 21.5% over the last ten quarters, with SG&A as a percentage of revenue fluctuating between 0% and 42%, based on reported figures, indicating uneven cost scaling.
In quarters where SG&A data is available (2026Q1-Q4 and 2025Q3-Q4), SG&A as a percentage of revenue ranges from 37% to 42%, which is relatively stable. However, the operating margin swings are driven by gross margin volatility and, in some quarters, missing SG&A data (2025Q1-Q2 and 2024Q3-Q4) that artificially inflates operating income. For instance, 2025Q2 shows a 21.5% operating margin with no SG&A reported, which likely overstates profitability. When SG&A is present, operating leverage appears modest, as revenue growth does not consistently translate into higher operating margins. This suggests that fixed costs are not being leveraged effectively, or that variable costs are rising in tandem with revenue.
Net Income Volatility Raises Quality Concerns
Net margin fluctuated from 1.3% in 2025Q4 to 9.6% in 2025Q2, with EPS growth swinging from -45.6% to +40.7%, as per quarterly data, indicating non-operating items may be distorting earnings.
The wide swings in net income and EPS, despite relatively stable revenue, suggest that non-operating items such as gains/losses on investments, impairments, or tax effects are materially impacting reported earnings. For example, 2025Q4 had a net margin of only 1.3% despite an operating margin of 14.8%, implying significant below-the-line charges. Conversely, 2025Q2's net margin of 9.6% on a 21.5% operating margin suggests a lower tax rate or other positive items. Investors should scrutinize the quality of earnings, as the core operating performance appears more stable than the bottom line suggests. The absence of stock-based compensation data (all zeros) may indicate that SBC is not a significant factor, but this could also be a data gap.
SG&A Discipline Appears Stable but Opaque
SG&A expenses ranged from $815M to $924M in quarters with available data, representing roughly 38-42% of revenue, as reported in financial statements, suggesting consistent overhead control.
In the five quarters where SG&A is disclosed, the absolute amount has grown modestly from $815M in 2025Q3 to $924M in 2026Q4, roughly in line with revenue growth. This indicates that management is keeping overhead growth in check, but the missing SG&A data for four quarters (2024Q3-Q4 and 2025Q1-Q2) limits a full assessment. The stability of SG&A as a percentage of revenue suggests that the company is not aggressively cutting costs, but also not investing heavily in growth. Given the competitive pressures in publishing, investors should monitor whether this discipline is sufficient to protect margins as revenue growth fluctuates.
Fiscal 2026 Q4 Marks a Margin Inflection
The most recent quarter (2026Q4) shows a dramatic gross margin expansion to 73.0% from the prior quarter's 50.8%, as per the latest data, potentially signaling a structural shift in revenue mix.
This quarter stands out as the most significant inflection point in the ten-quarter history, with gross margin jumping by over 20 percentage points sequentially. If this is not a one-time event, it could indicate a shift toward higher-margin digital subscriptions or a favorable content licensing deal. However, the sustainability is questionable given the historical volatility. The operating margin, however, did not expand proportionally (only 7.8% vs. 10.0% prior quarter), suggesting that SG&A costs absorbed much of the gross profit gain. This implies that the gross margin improvement may not translate to bottom-line leverage, and investors should watch whether this margin level persists in subsequent quarters.
Margin Volatility and Growth Sustainability Are Key Risks
The short thesis would highlight the extreme gross margin swings (50.7% to 73.0%) and the reliance on a single quarter for growth acceleration, as per reported data, questioning the durability of earnings.
A skeptic would argue that the 2026Q4 gross margin spike is an anomaly, possibly due to a one-time item, and that the underlying margin is closer to 50-55%, which is below the peer NYT's 50.8% but not superior. The revenue growth acceleration to 10.8% may be unsustainable if it is driven by cyclical advertising or one-off digital subscriptions. Additionally, the inconsistent operating margins, especially when SG&A data is missing, suggest that reported profitability may be overstated in some quarters. The company's net margin of 6.3% is below NYT's 12.2%, indicating lower profitability relative to a key peer. Investors should demand evidence that the recent margin and growth improvements are structural, not episodic.