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Why Is New York Times (NYT) Down 6.2% Since Last Earnings Report?
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It has been about a month since the last earnings report for New York Times Co. (NYT - Free Report) . Shares have lost about 6.2% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is New York Times due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for The New York Times Company before we dive into how investors and analysts have reacted as of late.
The New York Times Q1 Earnings Beat on Digital Ads, Subscriber Growth
The New York Times Company’s first-quarter 2026 results surpassed expectations, driven by strong growth in digital subscriptions and a sharp increase in digital advertising revenues. Adjusted earnings were 61 cents per share, up 48.8% year over year and above the Zacks Consensus Estimate of 49 cents by 24.5%. Quarterly revenues rose 12% from the year-ago period to $712.2 million and topped the consensus mark of $694.5 million by about 2.6%.
The quarter reflected continued momentum in the company’s subscription-led strategy, improving monetization, strong advertiser demand and expanding engagement across its diversified digital ecosystem. NYT added approximately 310,000 net digital-only subscribers in the quarter compared with the end of the fourth quarter of 2025.
The New York Times Company’s digital-only average revenue per user (ARPU) increased 2.4% year over year to $9.77. The improvement was primarily driven by subscribers transitioning from promotional pricing to higher-priced plans and pricing increases on certain tenured subscribers.
NYT’s Subscription Revenues Continue to Climb
Total subscription revenues increased 11.3% year over year to $516.9 million in the quarter under review. Subscription revenues from digital-only products rose 16.1% to $389 million, benefiting from higher digital-only subscribers and improved ARPU. However, print subscription revenues declined 1.1% to $127.8 million due to softness in home-delivery and single-copy revenues.
The company ended the quarter with 13.08 million total subscribers across its print and digital products, including 12.52 million digital-only subscribers. Digital-only subscribers increased by approximately 1.46 million year over year.
Management remains optimistic about subscription growth trends. For the second quarter of 2026, NYT expects digital-only subscription revenues to increase 14-17%, while total subscription revenues are projected to rise 10-12%.
Digital Advertising Strength Boosts NYT’s Top Line
Total advertising revenues rose 17.3% year over year to $126.8 million in the quarter. Digital advertising revenues surged 31.6% to $93.3 million, significantly exceeding management’s guidance range, fueled by strong marketer demand and growth in advertising supply. Print advertising revenues declined 9.8% to $33.6 million.
The New York Times Company highlighted continued strength in advertising categories tied to sports, games, shopping and lifestyle content. The company continues to incrementally expand advertising supply across its portfolio while maintaining a consumer-first experience.
For the second quarter, NYT expects digital advertising revenues to grow in the high-teens range, while total advertising revenues are projected to increase at a high-single-digit rate.
Other Key Highlights of NYT’s Results
Affiliate, licensing and other revenues increased 7.8% year over year to $68.5 million, mainly driven by stronger licensing revenues.
On the expense front, adjusted operating costs increased 9.4% year over year to $594.3 million, primarily due to higher compensation and benefits expenses related to journalism investments, video initiatives, marketing and product development.
Despite elevated investments, NYT delivered strong operating leverage. Adjusted operating profit increased 27.2% year over year to $117.9 million, while adjusted operating profit margin expanded 200 basis points to 16.6%.
NYT foresees affiliate, licensing and other revenues to rise at a low single-digit rate in the second quarter. Adjusted operating costs are expected to increase 8-9%, as the company continues investing in its journalism and digital product experiences while aiming to operate efficiently.
Sneak Peek Into NYT’s Financial Health
The New York Times Company ended the quarter with cash and marketable securities of $1.1 billion, a decline of $60.7 million from $1.2 billion as of Dec. 31, 2025. The company had no borrowings outstanding under its $400 million revolving credit facility and carried no other debt.
Net cash provided by operating activities was $92.2 million in the first quarter, and free cash flow was $81.5 million. Capital expenditures totaled about $11 million. NYT also repurchased 779,365 shares for $56.3 million during the quarter, with approximately $291.2 million remaining under its share repurchase authorization as of May 1, 2026. Management continues to expect capital expenditures between $35 million and $45 million for 2026.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in fresh estimates.
VGM Scores
Currently, New York Times has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Interestingly, New York Times has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Why Is New York Times (NYT) Down 6.2% Since Last Earnings Report?
It has been about a month since the last earnings report for New York Times Co. (NYT - Free Report) . Shares have lost about 6.2% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is New York Times due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for The New York Times Company before we dive into how investors and analysts have reacted as of late.
The New York Times Q1 Earnings Beat on Digital Ads, Subscriber Growth
The New York Times Company’s first-quarter 2026 results surpassed expectations, driven by strong growth in digital subscriptions and a sharp increase in digital advertising revenues. Adjusted earnings were 61 cents per share, up 48.8% year over year and above the Zacks Consensus Estimate of 49 cents by 24.5%. Quarterly revenues rose 12% from the year-ago period to $712.2 million and topped the consensus mark of $694.5 million by about 2.6%.
The quarter reflected continued momentum in the company’s subscription-led strategy, improving monetization, strong advertiser demand and expanding engagement across its diversified digital ecosystem. NYT added approximately 310,000 net digital-only subscribers in the quarter compared with the end of the fourth quarter of 2025.
The New York Times Company’s digital-only average revenue per user (ARPU) increased 2.4% year over year to $9.77. The improvement was primarily driven by subscribers transitioning from promotional pricing to higher-priced plans and pricing increases on certain tenured subscribers.
NYT’s Subscription Revenues Continue to Climb
Total subscription revenues increased 11.3% year over year to $516.9 million in the quarter under review. Subscription revenues from digital-only products rose 16.1% to $389 million, benefiting from higher digital-only subscribers and improved ARPU. However, print subscription revenues declined 1.1% to $127.8 million due to softness in home-delivery and single-copy revenues.
The company ended the quarter with 13.08 million total subscribers across its print and digital products, including 12.52 million digital-only subscribers. Digital-only subscribers increased by approximately 1.46 million year over year.
Management remains optimistic about subscription growth trends. For the second quarter of 2026, NYT expects digital-only subscription revenues to increase 14-17%, while total subscription revenues are projected to rise 10-12%.
Digital Advertising Strength Boosts NYT’s Top Line
Total advertising revenues rose 17.3% year over year to $126.8 million in the quarter. Digital advertising revenues surged 31.6% to $93.3 million, significantly exceeding management’s guidance range, fueled by strong marketer demand and growth in advertising supply. Print advertising revenues declined 9.8% to $33.6 million.
The New York Times Company highlighted continued strength in advertising categories tied to sports, games, shopping and lifestyle content. The company continues to incrementally expand advertising supply across its portfolio while maintaining a consumer-first experience.
For the second quarter, NYT expects digital advertising revenues to grow in the high-teens range, while total advertising revenues are projected to increase at a high-single-digit rate.
Other Key Highlights of NYT’s Results
Affiliate, licensing and other revenues increased 7.8% year over year to $68.5 million, mainly driven by stronger licensing revenues.
On the expense front, adjusted operating costs increased 9.4% year over year to $594.3 million, primarily due to higher compensation and benefits expenses related to journalism investments, video initiatives, marketing and product development.
Despite elevated investments, NYT delivered strong operating leverage. Adjusted operating profit increased 27.2% year over year to $117.9 million, while adjusted operating profit margin expanded 200 basis points to 16.6%.
NYT foresees affiliate, licensing and other revenues to rise at a low single-digit rate in the second quarter. Adjusted operating costs are expected to increase 8-9%, as the company continues investing in its journalism and digital product experiences while aiming to operate efficiently.
Sneak Peek Into NYT’s Financial Health
The New York Times Company ended the quarter with cash and marketable securities of $1.1 billion, a decline of $60.7 million from $1.2 billion as of Dec. 31, 2025. The company had no borrowings outstanding under its $400 million revolving credit facility and carried no other debt.
Net cash provided by operating activities was $92.2 million in the first quarter, and free cash flow was $81.5 million. Capital expenditures totaled about $11 million. NYT also repurchased 779,365 shares for $56.3 million during the quarter, with approximately $291.2 million remaining under its share repurchase authorization as of May 1, 2026. Management continues to expect capital expenditures between $35 million and $45 million for 2026.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a downward trend in fresh estimates.
VGM Scores
Currently, New York Times has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Interestingly, New York Times has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.