News Corp (NWSA) has just reported Q2 2026 results, with revenue of US$2.4b and basic EPS of US$0.34, while trailing 12 month revenue stands at US$8.6b and EPS at US$0.78, supported by net income from ongoing operations of US$193 million in the quarter and US$439 million over the last year. The company has seen quarterly revenue range from US$2.1b to US$2.4b over the last six reported periods, with basic EPS moving between roughly US$0.09 and US$0.40. This gives investors a clear read on how earnings power is tracking through recent quarters. With a current net profit margin of 5.1%, the latest release puts the focus squarely on how consistently the business can convert its revenue base into bottom line profits.

See our full analysis for News.

With the headline numbers in place, the next step is to set these results against the prevailing narratives around News Corp to see which stories are supported by the data and which might need a rethink.

Margins steady with 5.1% profitability

• Over the last 12 months, News generated US$8.6b in revenue and US$439 million in net income from ongoing operations, which works out to a 5.1% net margin that is described as roughly unchanged versus the prior year.
• Consensus narrative sees digital and professional information services, plus digital real estate, as key supports for margins, and the current 5.1% margin sits alongside:
  • Trailing 12 month earnings growth of 1.9%, which is much lower than the 20.7% per year earnings growth reported over five years, so the recent margin level is being maintained rather than pushed higher by rapid profit expansion.
  • Analysts expecting profit margins to move to 7.7% in three years, yet the flat 5.1% margin today shows that any margin improvement in the consensus view is not visible yet in the latest reported numbers.

Premium 33.7x P/E with mixed value signals

• The stock trades on a trailing P/E of 33.7x compared with 24.5x for peers and 15x for the wider US Media industry, while a DCF fair value of US$31.56 and an analyst price target of US$33.93 both sit above the current US$27.04 share price.
• Bulls argue the company deserves this premium because of high quality earnings and digital growth, but the numbers tell a more balanced story:
  • The modest 1.9% trailing earnings growth and forecast 13.2% earnings growth per year are both below the broader US market forecasts that appear in the data, which makes the 33.7x P/E look demanding compared with faster growing companies.
  • At the same time, the shares trade about 14.3% below the DCF fair value and around 25.5% below the analyst price target of US$33.93, so the current price sits between a premium multiple and models that indicate room for upside.

On these numbers, bulls are leaning on digital earnings quality and modelled upside to justify a P/E that is well above media peers, while the latest growth rates look far more restrained than that premium suggests. This is exactly the tension their thesis needs to clear to stay credible. 🐂 News Bull Case

Slower growth than market worries bears

• Revenue is forecast to grow 3.9% per year and earnings about 13.2% per year, both below the US market forecasts quoted in the data, even though trailing 12 month earnings have still grown 1.9% with a 5.1% margin.
• Bears highlight pressure from digital competition and legacy media decline, and some of the current figures echo those concerns:
  • Print and older media formats are cited as facing structural revenue pressure, and the relatively low 3.9% expected revenue growth in the dataset lines up with that idea of slower top line progress versus the wider US market.
  • However, the company is still producing US$439 million of net income from ongoing operations on US$8.6b of revenue, so even with these growth headwinds, the business remains profitable rather than sliding into losses that more extreme bearish views might imply.

For cautious investors, the combination of slower forecast revenue growth and a premium P/E underpins the bearish case, but the steady 5.1% margin and continued profitability mean those worries are playing out as slower growth, not a collapse in the business model. 🐻 News Bear Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for News on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

If the mix of bullish and bearish arguments still feels unresolved, now is a good time to review the numbers yourself and determine what stands out most. To see what supporters of the stock are focusing on, take a closer look at the 4 key rewards

See What Else Is Out There

News Corp combines a premium 33.7x P/E with slower forecast growth and margins that are steady rather than expanding, which can limit upside potential.

If that mix of high expectations and modest growth feels tight, it is worth checking stocks in the 51 high quality undervalued stocks that pair more grounded valuations with fundamental support.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.