Revenue growth turned positive in fiscal 2026, with Q4 2026 up 10.8% year-over-year, but gross margin dropped from 100% to 50.8% in Q3 2026, indicating a cost structure shift that may pressure profitability.
News Corporation (NWSA) 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 | 8.52B | 8.49B | 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% | -2.72% | 0.45% | -4.56% | 2.74% | -4.85% | - |
| Cost of Goods Sold | 3.89B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| COGS % of Revenue | 43.11% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Gross Profit | 5.14B | 8.45B | 8.25B | 8.01B | 10.38B | 9.36B | 9.01B | 10.07B | 9.02B | 8.14B | 8.29B | 8.52B | 8.49B | 8.89B | 8.65B | 9.1B |
| Gross Margin % | 56.89% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
| Gross Profit Growth % | -39.23% | 2.42% | 3% | -22.85% | 10.97% | 3.89% | -10.58% | 11.64% | 10.87% | -1.85% | -2.72% | 0.45% | -4.56% | 2.74% | -4.85% | - |
| Operating Expenses | 4.11B | 7.5B | 7.45B | 7.34B | 9.4B | 8.77B | 8.64B | 9.49B | 8.43B | 7.71B | 7.96B | 8.08B | 8.8B | 8.75B | 8.36B | 8.31B |
| OpEx % of Revenue | 45.49% | 88.69% | 90.29% | 91.59% | 90.55% | 93.66% | 95.9% | 94.19% | 93.36% | 94.68% | 95.94% | 94.76% | 103.65% | 98.43% | 96.55% | 91.39% |
| Selling, General & Admin | 3.51B | 3.3B | 3.2B | 3.01B | 3.59B | 3.25B | 3B | 3.19B | 3.05B | 2.73B | 2.72B | 2.63B | 2.45B | 2.78B | 2.75B | 2.65B |
| SG&A % of Revenue | 38.87% | 39.06% | 38.74% | 37.59% | 34.59% | 34.77% | 33.25% | 31.68% | 33.79% | 33.52% | 32.83% | 30.82% | 28.86% | 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 | 4.2B | 4.25B | 4.33B | 5.81B | 5.51B | 5.64B | 6.3B | 5.38B | 4.98B | 5.23B | 5.45B | 6.35B | 5.97B | 5.61B | 5.66B |
| Operating Income | 1.03B | 956M | 801M | 674M | 981M | 593M | 369M | 585M | 599M | 433M | 337M | 447M | -310M | 140M | 299M | 783M |
| Operating Margin % | 11.4% | 11.31% | 9.71% | 8.41% | 9.45% | 6.34% | 4.1% | 5.81% | 6.64% | 5.32% | 4.06% | 5.24% | -3.65% | 1.57% | 3.45% | 8.61% |
| Operating Income Growth % | 7.64% | 19.35% | 18.84% | -31.29% | 65.43% | 60.7% | -36.92% | -2.34% | 38.34% | 28.49% | -24.61% | 244.19% | -321.43% | -53.18% | -61.81% | - |
| EBITDA | 1.51B | 1.42B | 1.24B | 1.09B | 1.67B | 1.27B | 1.01B | 1.24B | 1.07B | 882M | 842M | 945M | 242M | 688M | 782M | 1.21B |
| EBITDA Margin % | 16.77% | 16.74% | 15.04% | 13.59% | 16.07% | 13.6% | 11.25% | 12.35% | 11.87% | 10.84% | 10.15% | 11.09% | 2.85% | 7.74% | 9.04% | 13.34% |
| EBITDA Growth % | 7% | 14.02% | 13.96% | -34.75% | 31.11% | 25.67% | -18.57% | 16.15% | 21.43% | 4.75% | -10.9% | 290.5% | -64.83% | -12.02% | -35.53% | - |
| D&A (Non-Cash Add-back) | 485M | 459M | 440M | 415M | 688M | 680M | 644M | 659M | 472M | 449M | 505M | 498M | 552M | 548M | 483M | 430M |
| EBIT | 1.05B | 933M | 620M | 464M | 911M | 503M | -1.5B | 413M | 599M | 433M | 337M | 447M | -310M | 140M | 299M | 783M |
| Net Interest Income | 29M | -10M | -35M | -84M | -99M | -53M | -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 | 35M | 84M | 99M | 53M | 25M | 59M | 7M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 17M | -33M | -216M | -294M | -169M | -143M | -1.89B | -231M | -1.69B | -1.05B | -156M | 105M | 132M | 33M | -2.68B | 178M |
| Pretax Income | 1.05B | 923M | 585M | 380M | 812M | 450M | -1.52B | 354M | -1.09B | -615M | 181M | 552M | -178M | 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% | 6.48% | -2.1% | 1.95% | -27.47% | 10.57% |
| Income Tax | 303M | 275M | 206M | 152M | 52M | 61M | 21M | 126M | 355M | 28M | -54M | 185M | -614M | -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% | 33.51% | 344.94% | -216.18% | 14.18% | 26.74% |
| Net Income | 573M | 1.18B | 266M | 149M | 623M | 330M | -1.27B | 155M | -1.51B | -738M | 179M | -147M | 239M | 506M | -2.08B | 678M |
| Net Margin % | 6.35% | 13.96% | 3.22% | 1.86% | 6% | 3.53% | -14.09% | 1.54% | -16.78% | -9.07% | 2.16% | -1.72% | 2.82% | 5.69% | -23.98% | 7.45% |
| Net Income Growth % | -51.44% | 343.61% | 78.52% | -76.08% | 88.79% | 126% | -918.71% | 110.24% | -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 | 692M | -25M | -41M | 0 | 0 | 0 | 0 | 0 | 0 | 15M | -445M | -142M | 0 | 0 | 0 |
| Minority Interest | 710M | 615M | 891M | 881M | 921M | 935M | 807M | 1.17B | 1.19B | 284M | 218M | 171M | 156M | 118M | 110M | 0 |
| EPS (Diluted) | 1.03 | 2.07 | 0.46 | 0.26 | 1.05 | 0.56 | -2.16 | 0.26 | -2.60 | -1.27 | 0.30 | -0.25 | 0.41 | 0.87 | -3.59 | 1.17 |
| EPS Growth % | -50.24% | 350% | 76.92% | -75.24% | 87.5% | 125.93% | -930.77% | 110% | -104.72% | -523.33% | 220% | -160.98% | -52.87% | 124.23% | -406.84% | - |
| EPS (Basic) | 1.03 | 2.08 | 0.47 | 0.26 | 1.06 | 0.56 | -2.16 | 0.27 | -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 | 582.7M | 581.4M | 582.5M | 582.6M | 579.7M | 579.4M | 578.5M | 578.64M |
| Basic Shares Outstanding | 556.5M | 567.7M | 571.2M | 576.4M | 592.5M | 590.4M | 587.9M | 587.9M | 581.93M | 579.83M | 641.53M | 581M | 579M | 578.8M | 578.5M | 578.64M |
| Dividend Payout Ratio | - | 15.68% | 64.66% | 116.78% | 28.09% | 49.39% | - | 103.87% | - | - | 82.12% | - | 10.04% | 3.95% | - | 1.47% |
Quick answers to the most common questions about buying NWSA stock.
For fiscal year 2026, News Corporation (NWSA) reported total revenue of $9.03B. This represents a 0.7% decline compared to $9.10B in 2011.
News Corporation (NWSA) is profitable, generating $573.0M in net income for the fiscal year ending 2026 with a net profit margin of 6.3%.
News Corporation (NWSA) 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 (NWSA) 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 volatility and margin compression
Metrics are mathematically derived from official filings.
Revenue Growth Stabilizes After Volatile Year
NWSA's revenue growth turned positive in fiscal 2026, with Q4 2026 up 10.8% year-over-year, according to reported figures, after a contraction in Q4 2025, suggesting a cyclical recovery.
The company experienced a sharp decline in Q4 2025 (-18.2%) followed by a rebound to positive growth in fiscal 2026, with Q4 2026 at 10.8%. This volatility may reflect cyclical advertising and subscription trends, but the recent acceleration suggests improving demand. Investors should monitor whether this growth is sustainable or a one-time rebound.
Gross Margin Shift Signals Cost Structure Change
Gross margin dropped from 100% in fiscal 2025 to 50.8% in Q3 2026, as reported in financial statements, indicating a significant change in cost allocation or revenue mix.
The sudden appearance of COGS in fiscal 2026, reducing gross margin to around 50-73%, suggests a reclassification of expenses or a shift toward lower-margin digital or print operations. This may indicate a structural change in the business model, but the underlying profitability remains stable with operating margins around 8-17%. The sustainability of this margin level warrants further investigation.
Operating Leverage Evident in Profit Swings
Operating income swung from $145M in Q3 2024 to $403M in Q2 2026, as per reported data, with revenue growth of only 5.5% in that quarter, indicating high operating leverage.
The company's operating income is highly sensitive to revenue changes, as seen in Q2 2026 where a 5.5% revenue increase led to a 10.4% operating margin, up from 7.3% in Q3 2024. This suggests a fixed cost base that can amplify profit growth when revenue expands. However, the reverse is also true, as evidenced by the margin compression in Q4 2026, which investors should monitor.
Net Income Boosted by Non-Recurring Items
Net income in Q4 2025 reached $743M, a 35.2% net margin, according to SEC filings, far above the typical 5-8% range, suggesting a one-time gain or tax benefit.
The spike in net income and EPS in Q4 2025 (EPS of $1.30) appears to be driven by non-operating items, as operating income was only $202M. This inflates reported earnings quality and may mislead investors if not adjusted. The subsequent quarters show normalized net margins around 4-8%, indicating that the Q4 2025 figure is an outlier.
SG&A Discipline Keeps Operating Margins Stable
SG&A expenses grew from $797M in Q3 2024 to $924M in Q4 2026, a 16% increase, while revenue grew only 15% over the same period, as per reported figures, indicating controlled overhead.
Despite revenue volatility, SG&A has remained relatively stable as a percentage of revenue, hovering around 38-40% in recent quarters. This suggests management is maintaining cost discipline, which supports operating margins. However, the increase in absolute SG&A in Q4 2026 may reflect investments or inflationary pressures that could pressure margins if revenue growth slows.
Revenue Concentration and Margin Risks
The sharp gross margin decline from 100% to 50.8% in Q3 2026, as reported, raises questions about the sustainability of profitability, especially if revenue growth decelerates.
Short-sellers might argue that the company's revenue growth is inconsistent, with negative growth in Q4 2025 and Q1 2025, and that the recent positive growth may not be durable. Additionally, the gross margin compression could indicate a shift to lower-margin businesses, which could erode operating leverage. If revenue growth stalls, the fixed cost base could lead to margin compression, as seen in Q4 2026 where operating margin fell to 7.8%.