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The New York Times Q3 Earnings Beat on Digital Subscription Growth
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Key Takeaways
NYT's Q3 adjusted EPS rose 15.3% to 68 cents, beating estimates, while revenues grew 9.7% to $768.5 million.
NYT added 420,000 net digital-only subscribers, bringing its digital base to 13.22 million, with ARPU up 1.4%.
Digital ad revenues climbed 12%, while adjusted operating profit rose 13.9% and margin expanded to 19.5%.
The New York Times Company (NYT - Free Report) reported third-quarter 2026 adjusted earnings of 68 cents per share, which surpassed the Zacks Consensus Estimate of 65 cents. The bottom line increased 15.3% from the year-ago quarter's adjusted earnings of 59 cents. Quarterly revenues rose 9.7% year over year to $768.5 million and exceeded the Zacks Consensus Estimate of $763.5 million.
The quarterly performance reflected continued momentum in the company's subscription strategy, supported by healthy digital subscriber additions, higher digital-only average revenue per user (ARPU), growing digital advertising revenues and expanding operating margins.
NYT's Subscription Revenues Continue to Grow
Total subscription revenues increased 10.7% year over year to $547.5 million in the reported quarter. Subscription revenues from digital-only products rose 14.6% to $421.3 million, benefiting from growth in average digital-only subscribers and higher ARPU.
Print subscription revenues declined 0.7% to $126.3 million, primarily due to lower single-copy revenues.
Management expects fourth-quarter 2026 digital-only subscription revenues to increase 12-15% year over year, while total subscription revenues are projected to grow 9-11%.
The New York Times Company Price, Consensus and EPS Surprise
The company ended the quarter with approximately 13.76 million total subscribers, including 13.22 million digital-only subscribers. Digital-only subscribers increased by approximately 1.46 million from the prior-year quarter.
During the third quarter, NYT added approximately 420,000 net digital-only subscribers, accelerating from 280,000 in the second quarter of 2026.
Digital-only ARPU jumped 1.4% year over year to $9.93, primarily driven by subscribers transitioning from promotional pricing to higher-priced plans and price increases for certain tenured subscribers.
Management highlighted strong subscriber engagement and retention across its portfolio, supported by continued investments in journalism and lifestyle products.
NYT's Digital Advertising Revenues Rise
Total advertising revenues increased 7.8% year over year to $142.6 million. Digital advertising revenues climbed 12% to $109.9 million, benefiting from continued marketer demand and growth in advertising supply. Print advertising revenues declined 4.3% to $32.7 million.
For the fourth quarter, NYT expects digital advertising revenues to increase at a high-single-digit to low-double-digit rate, while total advertising revenues are projected to grow at a mid-single-digit pace.
New York Times' Affiliate and Licensing Business Gains
Affiliate, licensing and other revenues increased 6.2% year over year to $78.4 million, primarily driven by higher licensing and Wirecutter affiliate referral revenues. These gains more than offset the impact of a shift in the timing of a marketing promotion by one of the company's partners.
Management expects affiliate, licensing and other revenues to increase at a low-single-digit to mid-single-digit rate in the fourth quarter.
NYT's Operating Profit and Margins Improve
Adjusted operating costs increased 8.7% year over year to $618.9 million, primarily due to higher journalism-related compensation and benefits expenses, general and administrative costs, and marketing and promotion spending.
Cost of revenues increased 7% to $373.5 million. Sales and marketing expenses rose 12.5% to $89.5 million, while product development costs jumped 7.9% to $72.3 million. General and administrative expenses climbed 12.7% to $86.4 million.
Despite higher expenses, adjusted operating profit increased 13.9% to $149.6 million, while adjusted operating profit margin expanded 80 basis points to 19.5%.
Reported operating profit rose 16.4% to $121.9 million, with the GAAP operating margin expanding 90 basis points to 15.9%.
Management expects adjusted operating costs to rise 6-8% in the fourth quarter as investments in journalism, video and digital products continue.
New York Times' Financial Position Remains Healthy
The New York Times ended the quarter with cash and marketable securities of $1.26 billion, up $96.9 million from the end of 2025. The company remained debt-free, with no borrowings outstanding under its $400 million revolving credit facility.
Net cash provided by operating activities totaled $462.2 million during the first nine months of 2026, while free cash flow reached $435.8 million, up from $392.9 million in the year-ago period.
During the quarter, NYT repurchased approximately 1,158,652 Class A shares for $79.1 million. As of Oct. 30, 2026, approximately $146 million remained available under its share repurchase authorization.
Trailing-12-month free cash flow stood at $593.4 million. Management aims to return at least 50% of free cash flow to shareholders over the medium term.
For 2026, capital expenditures are projected at approximately $35-$40 million, while depreciation and amortization are expected to total approximately $85 million.
We note that shares of this Zacks Rank #4 (Sell) company have gained 2.7% over the past three months compared with the industry’s rise of 3.6%.
Advanced Energy Industries shares have gained 1.5% year to date (YTD). The Zacks Consensus Estimate for Advanced Energy Industries’ 2026 earnings indicates a year-over-year increase of 74.9%. Estimates have remained unchanged for the past 30 days.
Shares of AMETEK have jumped 15.6% YTD. The Zacks Consensus Estimate for AMETEK’s 2026 earnings suggests a year-over-year rise of 13.2%. Estimates have been revised upward in the past 30 days.
ASE Technology shares have surged 132.8% YTD. The Zacks Consensus Estimate for ASE Technology’s 2026 earnings calls for year-over-year growth of 129.8%. Estimates have been raised in the past seven days.
View the Zacks #1 Rank List
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The New York Times Q3 Earnings Beat on Digital Subscription Growth
Key Takeaways
The New York Times Company (NYT - Free Report) reported third-quarter 2026 adjusted earnings of 68 cents per share, which surpassed the Zacks Consensus Estimate of 65 cents. The bottom line increased 15.3% from the year-ago quarter's adjusted earnings of 59 cents. Quarterly revenues rose 9.7% year over year to $768.5 million and exceeded the Zacks Consensus Estimate of $763.5 million.
The quarterly performance reflected continued momentum in the company's subscription strategy, supported by healthy digital subscriber additions, higher digital-only average revenue per user (ARPU), growing digital advertising revenues and expanding operating margins.
NYT's Subscription Revenues Continue to Grow
Total subscription revenues increased 10.7% year over year to $547.5 million in the reported quarter. Subscription revenues from digital-only products rose 14.6% to $421.3 million, benefiting from growth in average digital-only subscribers and higher ARPU.
Print subscription revenues declined 0.7% to $126.3 million, primarily due to lower single-copy revenues.
Management expects fourth-quarter 2026 digital-only subscription revenues to increase 12-15% year over year, while total subscription revenues are projected to grow 9-11%.
The New York Times Company Price, Consensus and EPS Surprise
The New York Times Company price-consensus-eps-surprise-chart | The New York Times Company Quote
New York Times' Digital Subscriber Base Expands
The company ended the quarter with approximately 13.76 million total subscribers, including 13.22 million digital-only subscribers. Digital-only subscribers increased by approximately 1.46 million from the prior-year quarter.
During the third quarter, NYT added approximately 420,000 net digital-only subscribers, accelerating from 280,000 in the second quarter of 2026.
Digital-only ARPU jumped 1.4% year over year to $9.93, primarily driven by subscribers transitioning from promotional pricing to higher-priced plans and price increases for certain tenured subscribers.
Management highlighted strong subscriber engagement and retention across its portfolio, supported by continued investments in journalism and lifestyle products.
NYT's Digital Advertising Revenues Rise
Total advertising revenues increased 7.8% year over year to $142.6 million. Digital advertising revenues climbed 12% to $109.9 million, benefiting from continued marketer demand and growth in advertising supply. Print advertising revenues declined 4.3% to $32.7 million.
For the fourth quarter, NYT expects digital advertising revenues to increase at a high-single-digit to low-double-digit rate, while total advertising revenues are projected to grow at a mid-single-digit pace.
New York Times' Affiliate and Licensing Business Gains
Affiliate, licensing and other revenues increased 6.2% year over year to $78.4 million, primarily driven by higher licensing and Wirecutter affiliate referral revenues. These gains more than offset the impact of a shift in the timing of a marketing promotion by one of the company's partners.
Management expects affiliate, licensing and other revenues to increase at a low-single-digit to mid-single-digit rate in the fourth quarter.
NYT's Operating Profit and Margins Improve
Adjusted operating costs increased 8.7% year over year to $618.9 million, primarily due to higher journalism-related compensation and benefits expenses, general and administrative costs, and marketing and promotion spending.
Cost of revenues increased 7% to $373.5 million. Sales and marketing expenses rose 12.5% to $89.5 million, while product development costs jumped 7.9% to $72.3 million. General and administrative expenses climbed 12.7% to $86.4 million.
Despite higher expenses, adjusted operating profit increased 13.9% to $149.6 million, while adjusted operating profit margin expanded 80 basis points to 19.5%.
Reported operating profit rose 16.4% to $121.9 million, with the GAAP operating margin expanding 90 basis points to 15.9%.
Management expects adjusted operating costs to rise 6-8% in the fourth quarter as investments in journalism, video and digital products continue.
New York Times' Financial Position Remains Healthy
The New York Times ended the quarter with cash and marketable securities of $1.26 billion, up $96.9 million from the end of 2025. The company remained debt-free, with no borrowings outstanding under its $400 million revolving credit facility.
Net cash provided by operating activities totaled $462.2 million during the first nine months of 2026, while free cash flow reached $435.8 million, up from $392.9 million in the year-ago period.
During the quarter, NYT repurchased approximately 1,158,652 Class A shares for $79.1 million. As of Oct. 30, 2026, approximately $146 million remained available under its share repurchase authorization.
Trailing-12-month free cash flow stood at $593.4 million. Management aims to return at least 50% of free cash flow to shareholders over the medium term.
For 2026, capital expenditures are projected at approximately $35-$40 million, while depreciation and amortization are expected to total approximately $85 million.
We note that shares of this Zacks Rank #4 (Sell) company have gained 2.7% over the past three months compared with the industry’s rise of 3.6%.
Stocks Worth Watching
Some better-ranked stocks include Advanced Energy Industries, Inc. (AEIS - Free Report) , AMETEK, Inc. (AME - Free Report) and ASE Technology Holding Co., Ltd. (ASX - Free Report) . Advanced Energy Industries, AMETEK and ASE Technology each sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Advanced Energy Industries shares have gained 1.5% year to date (YTD). The Zacks Consensus Estimate for Advanced Energy Industries’ 2026 earnings indicates a year-over-year increase of 74.9%. Estimates have remained unchanged for the past 30 days.
Shares of AMETEK have jumped 15.6% YTD. The Zacks Consensus Estimate for AMETEK’s 2026 earnings suggests a year-over-year rise of 13.2%. Estimates have been revised upward in the past 30 days.
ASE Technology shares have surged 132.8% YTD. The Zacks Consensus Estimate for ASE Technology’s 2026 earnings calls for year-over-year growth of 129.8%. Estimates have been raised in the past seven days.