Net income fell 51.4%.
That is the odd number in News Corp’s latest annual report. Revenue rose 6.8% to $9.0 billion in the twelve months ended June 30, 2026, but net income dropped to $573.0 million from $1.2 billion. Diluted EPS followed the same path, falling to $1.03 from $2.07.
The result was a sharp squeeze in profitability. Net margin fell to 6.3% from 14.0%, even as the company sold more books, subscriptions, real-estate listings, and information products. News Corp does not attribute the full net-income decline to one item in the disclosed receipts.
The revenue growth itself was not purely a volume story. Dow Jones circulation and subscription revenue rose $57 million, or 5%, with foreign exchange, price increases, licensing revenue, and digital subscriber growth doing much of the work.
"Circulation and subscription revenues increased $57 million, or 5%, as compared to fiscal 2025, primarily due to the $43 million, or 4%, positive impact of foreign currency fluctuations, price increases, higher content licensing revenues and digital subscriber growth in the U.K., partially offset by print volume declines."
News Corp, 10-K filed Aug. 7, 2026
The plain-English version: subscriptions grew, but print volume declined, and foreign exchange supplied a meaningful lift. A similar currency benefit appeared in the company’s digital real-estate businesses, where management cited a $63 million positive impact.
Expenses added another layer. Operating costs rose at Book Publishing and News Media. News Corp pointed to higher costs tied to greater book sales, employee costs, foreign exchange, and a $16 million one-time write-off related mainly to inventory at HarperCollins’ international operations.
"The increase in operating expenses for the fiscal year ended June 30, 2026 was primarily due to higher costs at the Book Publishing segment driven by higher costs related to higher sales volume, a $16 million one-time write-off in the second quarter of fiscal 2026 primarily related to inventory at HarperCollins’ international operations and higher employee costs and at the News Media segment driven by the negative impact of foreign currency fluctuations partially offset by lower Talk costs."
News Corp, 10-K filed Aug. 7, 2026
That $16 million charge is not large enough, by itself, to account for the $627 million drop in net income. It shows where the reported cost pressure surfaced, while the disclosed receipts do not provide a full earnings bridge for the revenue line.
Cash supplies a second tension. The balance fell from $2.4 billion to $2.1 billion, while accounts receivable rose 12.5% to $1.8 billion and capital spending increased 4.7% to $426 million. Management separately said cash flow improved because of higher segment EBITDA and lower working capital, partly offset by taxes and restructuring payments.
The company’s own annual history adds context without resolving the mismatch. Net margin was 1.9% in fiscal 2023, 3.2% in 2024, and 14.0% in 2025 before settling at 6.3% this year. Revenue, meanwhile, moved from $8.0 billion to $9.0 billion across that span. Sales have been steadier than the profit line.
At the latest close, NWSA was $29.66, up 2.0% on Aug. 6. The next News Corp report’s operating-expense detail, net income, and cash balance will provide the factual comparison for whether the current earnings compression is still visible in the business.
Revenue is growing, but profit is not keeping the same shape.
Source: News Corp fiscal 2026 Form 10-K, filed Aug. 7, 2026.