Operating cash flow exceeded net income by 3.8x in Q4 2026, reaching $685M, but working capital swings of -$380M and a high payout ratio (buybacks and dividends of $411M vs. $539M FCF) suggest timing effects and aggressive capital returns.
News Corporation (NWSA) cash flow statement — 16-year operating, investing & financing cash flows
| 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 |
|---|
| Cash from Operations | 1.33B | 1.13B | 1.1B | 1.09B | 1.35B | 1.24B | 780M | 928M | 757M | 494M | 952M | 831M | 854M | 501M | 851M | 1.33B |
| Operating CF Margin % | 14.72% | 13.42% | 13.31% | 13.63% | 13.04% | 13.22% | 8.66% | 9.21% | 8.39% | 6.07% | 11.48% | 9.75% | 10.06% | 5.63% | 9.83% | 14.63% |
| Operating CF Growth % | 17.2% | 3.28% | 0.55% | -19.35% | 9.46% | 58.59% | -15.95% | 22.59% | 53.24% | -48.11% | 14.56% | -2.69% | 70.46% | -41.13% | -36.06% | - |
| Net Income | 743M | 480M | 354M | 187M | 760M | 389M | -1.54B | 228M | -1.51B | -643M | 250M | 298M | 294M | 547M | -2.04B | 704M |
| Depreciation & Amortization | 485M | 459M | 734M | 714M | 688M | 680M | 644M | 659M | 472M | 449M | 505M | 498M | 578M | 548M | 483M | 430M |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 | 0 | 69M | 0 | 0 | 38M | 55M | 53M | 0 | 0 | 0 | 0 |
| Deferred Taxes | 41M | 83M | 17M | 6M | -125M | -100M | -51M | 0 | 202M | -95M | -147M | 59M | 0 | -153M | 0 | 88M |
| Other Non-Cash Items | -32M | 318M | 180M | 267M | 124M | 65M | 1.83B | 112M | 1.74B | 651M | -26M | -124M | 41M | -335M | 2.31B | 3M |
| Working Capital Changes | 92M | -206M | -187M | -82M | -93M | 203M | -163M | -71M | -142M | 94M | 315M | 47M | -59M | -106M | 101M | 106M |
| Change in Receivables | 0 | -96M | -120M | -146M | -51M | -166M | 0 | 134M | 0 | 0 | 22M | 0 | 0 | 0 | 96M | 132M |
| Change in Inventory | 33M | -46M | 54M | -2M | -87M | 6M | 9M | -58M | 15M | 15M | 35M | 18M | 23M | -15M | -6M | -13M |
| Change in Payables | 59M | -64M | -121M | 66M | 45M | 363M | 1.3B | -147M | 53M | 137M | 342M | 12M | 126M | 44M | 11M | -10M |
| Cash from Investing | -519M | -153M | -524M | -574M | -2.08B | -1.29B | -427M | -677M | -321M | -420M | -1.12B | -1.74B | -306M | -1.67B | -659M | -881M |
| Capital Expenditures | -426M | -407M | -496M | -499M | -499M | -390M | -438M | -572M | -364M | -256M | -256M | -378M | -379M | -332M | -375M | -549M |
| CapEx % of Revenue | 4.72% | 4.82% | 6.01% | 6.23% | 4.81% | 4.17% | 4.86% | 5.68% | 4.03% | 3.15% | 3.09% | 4.43% | 4.47% | 3.73% | 4.33% | 6.04% |
| Acquisitions | -122M | -96M | -53M | -17M | -1.5B | -886M | -32M | -85M | 61M | -347M | -520M | -1.19B | -45M | -2.16B | -54M | -333M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 0 | 230M | 25M | -58M | -76M | -3M | 32M | -20M | 33M | 281M | -294M | -173M | 118M | 821M | -54M | -333M |
| Cash from Financing | 0 | -563M | -441M | -501M | 404M | 699M | -472M | -610M | -398M | -217M | 150M | -190M | 189M | 2.49B | -1.01B | 270M |
| Debt Issued (Net) | 0 | -142M | -107M | -75M | 852M | 958M | -300M | -435M | -118M | -23M | 342M | -129M | 0 | -235M | 0 | 0 |
| Equity Issued (Net) | 0 | -150M | -117M | -243M | -179M | 0 | 0 | 0 | 0 | 0 | -41M | -30M | 0 | 0 | 0 | 0 |
| Dividends Paid | -204M | -185M | -172M | -174M | -175M | -163M | -158M | -161M | -158M | -152M | -147M | -30M | -24M | -20M | -13M | -10M |
| Share Repurchases | 0 | -150M | -117M | -243M | -179M | 0 | 0 | 0 | 0 | 0 | -41M | -30M | 0 | 0 | 0 | 0 |
| Other Financing | 204M | -86M | -45M | -9M | -94M | -96M | -14M | -14M | -122M | -42M | -4M | -1M | 213M | 2.74B | -993M | 280M |
| Net Change in Cash | 824M | 531M | 127M | 11M | -414M | 719M | -126M | -391M | 18M | 184M | -119M | -1.19B | 764M | 1.25B | -889M | 942M |
| Free Cash Flow | 903M | 727M | 602M | 593M | 855M | 847M | 342M | 356M | 393M | 238M | 696M | 523M | 475M | 169M | 476M | 782M |
| FCF Margin % | 10% | 8.6% | 7.3% | 7.4% | 8.23% | 9.05% | 3.8% | 3.53% | 4.36% | 2.92% | 8.39% | 6.14% | 5.6% | 1.9% | 5.5% | 8.6% |
| FCF Growth % | 24.21% | 20.76% | 1.52% | -30.64% | 0.94% | 147.66% | -3.93% | -9.41% | 65.13% | -65.8% | 33.08% | 10.11% | 181.07% | -64.5% | -39.13% | - |
| FCF per Share | 1.62 | 1.28 | 1.05 | 1.02 | 1.44 | 1.43 | 0.58 | 0.61 | 0.67 | 0.41 | 1.19 | 0.90 | 0.82 | 0.29 | 0.82 | 1.35 |
| FCF Conversion (FCF/Net Income) | 2.32x | 0.96x | 4.13x | 7.33x | 2.17x | 3.75x | -0.61x | 5.99x | -0.50x | -0.67x | 5.32x | -5.65x | 3.57x | 0.99x | -0.41x | 1.96x |
| Interest Paid | 0 | 93M | 97M | 61M | 96M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 208M | 156M | 149M | 180M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying NWSA stock.
News Corporation (NWSA) generated $1.33B in net cash from operating activities in 2026. This reflects the cash generated directly from core business operations.
News Corporation (NWSA) generated $903.0M in free cash flow in 2026. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
News Corporation (NWSA) spent $426.0M on capital expenditures in 2026. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2026, News Corporation (NWSA) returned $204.0M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Revenue volatility and margin compression
Metrics are mathematically derived from official filings.
Earnings Quality Masked by Working Capital Swings
NWSA's operating cash flow exceeded net income by 3.8x in Q4 2026, per reported figures, but working capital swings of -$380M suggest earnings quality is heavily influenced by timing.
The OCF/NI ratio of 3.83 in Q4 2026 appears inflated by a $380M working capital outflow, which may indicate aggressive collection or payables management rather than core earnings strength. Over the past year, OCF/NI has ranged from 0.25 to 5.61, suggesting that net income is not a reliable proxy for cash generation. Investors should monitor whether these swings reflect sustainable operational efficiency or merely timing distortions.
Free Cash Flow Recovery Remains Uneven
NWSA's FCF margin swung from -1.5% in Q1 2025 to 23.1% in Q4 2026, as reported in financial statements, indicating a volatile but improving cash generation trend.
The FCF margin in Q4 2026 reached 23.1%, a significant improvement from the negative margins in Q1 2025 and Q1 2026, suggesting a cyclical recovery. However, the trajectory is not smooth, with Q2 2026 margin at only 5.8%, reflecting the lumpy nature of the business. This volatility may indicate that the company's cash flow is sensitive to seasonal and one-time items, warranting caution in extrapolating the latest quarter's strength.
Capital Intensity Remains Moderate but Rising
CapEx as a percentage of revenue averaged 4.8% over the last four quarters, per reported data, with Q4 2026 at 6.2%, suggesting a modest increase in investment intensity.
The CapEx/Revenue ratio has trended upward from 2.8% in Q2 2025 to 6.2% in Q4 2026, indicating that NWSA is investing more in its asset base relative to sales. This could reflect growth initiatives or necessary maintenance, but the increase is not dramatic. Given the company's publishing focus, the moderate capital intensity suggests that free cash flow is not heavily burdened by capital requirements, though investors should monitor if this trend continues.
Working Capital Volatility Drives Cash Flow Swings
Working capital changes ranged from -$380M to +$264M over the past ten quarters, as per reported figures, indicating significant timing effects on operating cash flow.
The large swings in working capital, particularly the -$380M in Q4 2026 and +$264M in Q3 2024, suggest that NWSA's cash flow is heavily influenced by the timing of collections and payments. This volatility may obscure the underlying earnings power and makes quarterly comparisons less meaningful. Investors should focus on annual trends to assess the company's true cash generation capability.
Shareholder Returns Outpace Cash Generation
NWSA returned $356M via buybacks and $55M in dividends in Q4 2026, as reported, exceeding its $539M FCF, indicating a high payout ratio.
In Q4 2026, total shareholder returns of $411M consumed 76% of FCF, a level that may not be sustainable if FCF reverts to its historical average. Over the past year, buybacks have increased significantly from $27M in Q3 2024 to $356M in Q4 2026, suggesting a more aggressive capital return program. This deployment strategy may signal management confidence, but it also reduces financial flexibility, especially if cash flows weaken.
Cumulative Cash Generation Exceeds Net Income
Over the last ten quarters, NWSA's cumulative operating cash flow of $3.4B surpassed cumulative net income of $1.8B, per reported data, indicating strong cash conversion.
The cumulative OCF of $3.4B versus net income of $1.8B suggests that NWSA's earnings are backed by robust cash generation, likely due to significant non-cash charges like D&A. However, this divergence also implies that net income understates the company's cash-producing ability, which may be a positive signal for valuation. Investors should note that this gap could narrow if working capital dynamics reverse.
What Could Invalidate the Base Case
The cash flow statement obscures potential timing distortions and non-recurring items, as evidenced by the $743M net income in Q4 2025 with only $188M OCF, per reported data.
The wide gap between net income and operating cash flow in certain quarters, such as Q4 2025 where net income was $743M but OCF was only $188M, suggests that reported earnings may include significant non-cash or one-time gains. Additionally, the absence of SBC data in the provided figures may understate true cash costs, as SBC is typically a non-cash expense that still dilutes shareholders. Investors should scrutinize the sustainability of cash flows, especially if working capital swings reverse or if the one-time gains do not recur.