News Corp reported an 11% rise in fiscal fourth-quarter revenue to $2.34 billion, beating analyst expectations, while net income from continuing operations more than doubled to $230 million.
Shares nonetheless fell more than 3% in after-hours trading.
Segment earnings before interest, taxes, depreciation and amortization climbed 31% to $423 million. On a per-share basis, earnings from continuing operations attributable to shareholders rose to 33 cents from 9 cents a year earlier. Adjusted earnings of 35 cents a share topped the 24 cents analysts polled by FactSet had forecast. The quarter ended June 30.
Growth was broad-based. Dow Jones revenue increased 7% to $644 million, with segment earnings up 20% to $181 million. Advertising revenue rose 5%, as digital gains more than offset print declines.
HarperCollins revenue jumped 15% to $566 million, led by titles including Ann Patchett’s “Whistler,” Sarah A. Parker’s “The Ballad of Falling Dragons” and Vice President JD Vance’s “Communion: Finding My Way Back to Faith.”
Digital real-estate-services revenue, which includes stakes in REA Group and Realtor.com operator Move, rose 19% to $553 million, while segment earnings surged 46% to $222 million.
News Corp has existing AI content deals with Meta Platforms and OpenAI. Chief Executive Robert Thomson said the company is in advanced talks for “significant” additional agreements and described News Corp as a key participant in the AI ecosystem. “Without our journalists, our authors, our data, our brands and our professional expertise, users would be drowning in a slimy sea of AI slop,” he said.