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News Corporation Gears Up to Report Q1 Earnings: What's in Store?

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Key Takeaways

  • News Corporation's Q1 FY27 revenues are seen at $2.26B, up 5.62% Y/Y, and EPS at 26 cents, up 18.18%.
  • Dow Jones' improving B2B revenues, AI licensing and HarperCollins' book pipeline may boost NWSA earnings.
  • NWSA's property business faces softer Australian listings and weak U.S. housing despite premium ad gains.

News Corporation (NWSA - Free Report) is slated to report its first-quarter fiscal 2027 results on Nov. 4, 2026.

The Zacks Consensus Estimate for first-quarter revenues is pegged at $2.26 billion, indicating year-over-year growth of 5.62%.

The consensus mark for earnings is pegged at 26 cents per share, suggesting an improvement of 18.18% from the year-ago quarter.

News Corporation surpassed the Zacks Consensus Estimate for earnings in each of the trailing four quarters, delivering an average surprise of 35.34%. In the last reported quarter, the company delivered an earnings surprise of 66.67%.

News Corporation Price and EPS Surprise

News Corporation Price and EPS Surprise

News Corporation price-eps-surprise | News Corporation Quote

Let us see how things have shaped up for the upcoming announcement.

Factors to Note Ahead of NWSA’s Q1 Results

News Corporation's strengthening Dow Jones business is likely to have supported revenue growth and profitability in the first quarter of fiscal 2027. In the preceding quarter, Dow Jones revenues increased 7% year over year to $644 million, driven by an 11% increase in Risk & Compliance revenues and 4% growth in Dow Jones Energy. Management expects improving business-to-business revenues, particularly at Dow Jones Energy, in the first quarter. Growing enterprise subscriptions, higher digital subscription pricing and expanding AI content-licensing agreements are likely to have strengthened recurring revenues and supported margin expansion in the quarter under review.

News Corporation's Digital Real Estate Services segment is expected to have benefited from improving monetization and growing adoption of premium offerings in the to-be-reported quarter. In the preceding quarter, REA Group's revenues increased 21% year over year, supported by residential yield growth of 11% and increasing adoption of premium products. Realtor.com's revenues rose 13% to $167 million, reflecting strong demand for RealPro Select and higher-value listings. Continued product innovation through RealAssist-powered conversational search, Realtor.com+ and expanding adjacent services is likely to have supported customer engagement, advertising yields and revenues in the fiscal first quarter.

HarperCollins' strong publishing pipeline and growing digital sales are expected to have boosted News Corporation's performance in the first quarter of fiscal 2027. In the preceding quarter, Book Publishing revenues increased 15% year over year to $566 million, supported by robust frontlist releases and higher backlist sales. Digital revenues grew 12%, including 16% growth in audiobooks, reflecting strong demand across Spotify and Audible. Management expects a strong frontlist program and an easier year-over-year comparison in the first quarter. These factors are likely to have supported book sales and profitability in the quarter under review.

However, slowing Australian residential listing activity is likely to have constrained News Corporation's Digital Real Estate Services performance in the fiscal first quarter. Although REA Group benefited from an 11% year-over-year increase in national residential buy listings in the preceding quarter, listing volumes declined 2% in July. The reversal indicates softer property-market activity at the beginning of the first quarter. Weaker listing volumes, coupled with housing affordability concerns and uncertain market conditions, are expected to have partially offset benefits from higher yields and premium advertising products in the to-be-reported quarter.

Elevated mortgage rates and subdued U.S. housing activity are also likely to have affected Realtor.com's growth in the first quarter of fiscal 2027. In the preceding quarter, Realtor.com's average monthly unique users declined 6% year over year to 68 million, while lead volumes increased just 1%. Management cautioned that rising mortgage rates could delay a broader housing-market recovery. Persistently weak housing turnover and softer consumer activity are expected to have constrained traffic and lead-generation opportunities, potentially limiting revenue growth in the quarter under review.

What Our Model Says About NWSA Stock

Our proven model does not conclusively predict an earnings beat for News Corporation this time around. According to 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. However, this is not the case here, as you can see below.

The latest accessible Zacks figures for NWSA show an Earnings ESP of -1.27% and a Zacks Rank #3. Although a negative Earnings ESP does not necessarily indicate an earnings miss, the combination makes it difficult to conclusively predict an earnings beat. You can uncover the best stocks to buy or sell before they are 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 earnings in their upcoming releases:

Versant Media Group, Inc. (VSNT - Free Report) currently has an Earnings ESP of +9.09% and sports a Zacks Rank #1. VSNT’s shares have declined 13.4% year to date. VSNT is set to report its third-quarter 2026 results on Nov. 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

American Public Education (APEI - Free Report) presently has an Earnings ESP of +1.56% and a Zacks Rank #2. APEI’s shares have returned 7.3% year to date. APEI is set to report its third-quarter 2026 results on Nov. 9.

Angel Studios, Inc. (ANGX - Free Report) presently has an Earnings ESP of +7.69% and a Zacks Rank #2. However, ANGX’s shares have fallen 23.3% year to date. ANGX is set to report its third-quarter 2026 results on Nov. 10.

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