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NWSA's Q3 Earnings Coming Up: What's in the Cards for the Stock?

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Key Takeaways

  • NWSA's Dow Jones unit targets $1B EBITDA within five years, signaling long-term growth focus.
  • News Media segment faces pressure from weak print ads and California Post investments.
  • Zacks Consensus Estimate pegs NWSA's fiscal Q3 revenues at $2.09B, up 4.16% Y/Y, EPS at 16 cents.

News Corporation (NWSA - Free Report) is scheduled to report third-quarter fiscal 2026 results on May 7.

The Zacks Consensus Estimate for revenues is pegged at $2.09 billion, indicating growth of 4.16% from the year-ago quarter’s levels.

The consensus mark for earnings has remained steady at 16 cents per share in the past 30 days, down 5.88% from the year-ago quarter’s reported figure.

The company’s earnings missed the Zacks Consensus Estimate once in the trailing four quarters while beating the same thrice, the average surprise being 8.23%.

News Corporation Price and EPS Surprise

News Corporation Price and EPS Surprise

News Corporation price-eps-surprise | News Corporation Quote

Let’s see how things have shaped up prior to this announcement.

Factors to Consider for NWSA

News Corporation is expected to deliver a mixed third-quarter fiscal 2026 performance, with underlying trends from the prior quarter likely carrying forward. Dow Jones and Digital Real Estate Services are likely to have shown sustained momentum through subscription expansion, professional information demand and improved digital monetization, with Risk and Compliance, enterprise partnerships and pricing actions likely underpinning recurring revenues.

Dow Jones likely remained the central growth engine, driven by solid B2B demand and sustained digital advertising strength, with the segment's stated EBITDA target of $1 billion within five years underscoring its commercial durability. However, higher employee and marketing costs, flagged in the prior quarter, may have continued to weigh on segment margins. Enterprise subscriptions and pricing optimization likely supported ARPU, though a prior year nonrecurring digital circulation benefit of about 300 basis points may have modestly affected comparisons.

Digital Real Estate Services may have faced modest headwinds from Australian residential listing volumes declining 8% in January 2026, partially offset by yield-driven pricing and the realtor.com+ platform launch. Book Publishing likely saw margin improvement following the prior quarter's $16 million inventory charge, with the Bridgerton Season 4 Netflix premiere potentially supporting frontlist demand.

News Media margins may have remained under pressure from persistent print advertising weakness and ongoing California Post investment costs, though digital subscriber gains and pricing actions likely provided partial offsets. Overall, while top-line growth is likely to have continued, earnings may have faced pressure from rising costs across segments, with margin expansion remaining a key variable heading into the results.

What Our Model Says for NWSA

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here, as you can see below.

News Corporation currently has an Earnings ESP of 0.00% and carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

NVIDIA (NVDA - Free Report) has an Earnings ESP of +0.24% and carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

NVIDIA is slated to report first-quarter 2026 results on May 20. The Zacks Consensus Estimate for NVIDIA’s first-quarter earnings is pegged at $1.77 per share, up by a penny over the past 30 days, indicating a rise of 118.5% from the year-ago quarter’s reported figure.

Cisco Systems (CSCO - Free Report) has an Earnings ESP of +1.92% and carries a Zacks Rank #2 at present. Cisco Systems is set to report third-quarter fiscal 2026 results on May 13.

The Zacks Consensus Estimate for Cisco Systems’ third-quarter 2026 earnings is pegged at $1.04 per share, unchanged over the past 60 days, indicating a rise of 8.33% from the year-ago quarter’s reported figure.

Audioeye (AEYE - Free Report) has an Earnings ESP of +9.62% and carries a Zacks Rank #2 at present. It is set to report first-quarter fiscal 2026 results on May 12.

The Zacks Consensus Estimate for Audioeye’s first-quarter earnings is pegged at 17 cents per share, up by 2 cents over the past 60 days, indicating a rise of 13.3% from the year-ago quarter’s reported figure.

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