News Corporation reported revenues of $9,028 million for the financial year ended 30 June 2026, representing a 7% increase from the prior year. However, the company’s net income fell by $607 million, or 51%, reflecting the substantial impact of discontinued operations. The Foxtel Group contributed $692 million to net income in the previous year, and its divestment represents a structural shift in earnings composition rather than operational deterioration.
The $576 million revenue increase reflects continuing strength in the company’s media, information services and digital real estate businesses. For investors assessing operational performance, distinguishing between reported results and continuing operations is essential when evaluating a company mid-restructuring, as it reveals the underlying momentum of the businesses that will drive future returns.
News Corporation maintained its dividend commitment at US$0.20 per share for the full year, comprising US$0.10 interim dividend already paid and US$0.10 final dividend declared in August 2026. The dividend maintenance despite lower reported earnings reflects management confidence in cash generation from continuing operations and signals commitment to shareholder returns through the transition period. Dividends are unfranked, relevant for Australian shareholders assessing tax impacts.
The company’s net tangible asset backing per share declined modestly from US$5.46 to US$5.26, a 3.7% decrease year-on-year. This reflects the balance sheet impact of the Foxtel divestment and capital deployment during the period. The asset backing remains substantial, providing meaningful foundation for shareholder value assessment.
For investors, these results reflect a company managing significant structural change. Revenue growth in continuing operations shows core businesses are functioning adequately, while the earnings decline is predominantly attributable to Foxtel’s absence rather than operational underperformance. The maintained dividend provides support through the transition period.
Key areas to monitor include the trajectory of revenue and earnings growth in continuing operations, capital deployment decisions following the Foxtel exit, and management’s strategic positioning of remaining businesses. Investors should also track profitability recovery prospects and any further capital management initiatives. This announcement is price sensitive and has been flagged as material by the ASX.
View the full ASX announcement (PDF)
About News Corporation Limited (ASX: NWS)
News Corporation Limited is a global media and information services company that creates and distributes content and data products through newspapers, digital platforms, broadcast services, and online channels operating in the United States, United Kingdom, Australia, and other international markets. The company operates through five main segments: Digital Real Estate Services (including its 61%-owned interest in REA Group), Dow Jones, Book Publishing (HarperCollins), News Media (operating mastheads including The Wall Street Journal, The Times, The Australian), and other businesses including Storyful and sports media. It generates revenues from news publishing, financial information services, property listings, book publishing, and digital media subscriptions.
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