News Corp posts record Q1 profit as three units drive growth

News Corp’s first-quarter net income climbed 43% to $215 million, or 29 cents a share, as the New York-based media group lifted revenue 6% to $2.28 billion and posted a record first-quarter performance on Wednesday.

Adjusted earnings per share (EPS), the company’s adjusted measure of profit per share, totaled 28 cents. Revenue reached $2.28 billion, up from $2.14 billion a year earlier, while analysts expected EPS of 26 cents on revenue of $2.26 billion. News Corp’s adjusted result was 2 cents above the EPS forecast, and revenue exceeded the forecast by $20 million.

What changed in the quarter?

News Corp is the parent of The New York Post. CEO Robert Thomson said the results marked the company’s 14th consecutive quarter of year-over-year profitability growth, meaning profits rose against the comparable prior-year period. He called Digital Real Estate Services, Dow Jones and Book Publishing the group’s three engines of growth, which delivered robust results despite volatile economic conditions.

Thomson also said the performance reflected News Corp’s transformation into a digitally driven, higher-margin business—one generating more profit from each dollar of revenue—with what he described as peerless, profitable content. His comments placed the emphasis on performance across several businesses: all three named units expanded faster than the group’s 6% revenue increase.

Takeaway: News Corp delivered 43% net-income growth on 6% revenue growth in the quarter.

Which businesses powered the result?

News Corp attributed the quarter’s financial performance to growth in three divisions:

• Digital Real Estate Services: Revenue jumped 10% to $529 million.
• Dow Jones: Sales increased 8% to $630 million.
• Book Publishing: Revenue rose 9% to $582 million.

The figures show the three businesses contributed differently. Digital Real Estate Services posted the fastest percentage increase. Dow Jones generated the most sales of the three units, while Book Publishing’s 9% increase also outpaced the group’s 6% revenue growth.

Takeaway: Growth was broad-based across digital real estate, Dow Jones and book publishing rather than dependent on one operation.

What does AI mean for the growth plan?

Thomson, a staunch critic of artificial intelligence (AI) companies over inadequate payment for content, tied AI to News Corp’s next phase of growth. He said the company was primed for further growth in the AI age and identified data centers, chips and water as possible necessary components.

“We believe we are primed for further growth in the AI age, as data centers, chips and water may be necessary components, but high quality content is the very essence of AI,” Thomson said. “We remain vigilant in protecting that priceless intellectual property.”

Intellectual property rights attached to News Corp’s content were central to his warning. Thomson said the company has content relationships with OpenAI and Meta, which he praised for recognizing the importance of that material. He remained less optimistic about other platforms that might take the content without adequate payment.

“We are pleased to have partners in OpenAI and Meta that recognize the importance of our content, and remain optimistic that other platforms will choose compensation over confiscation, principle over plunder. To that end, we will woo and we will sue,” Thomson concluded.

That approach combines continued outreach with a willingness to litigate. News Corp wants compensation for its content as AI-related demand develops, rather than allowing platforms to treat the material as freely available.

Takeaway: Management sees AI as a potential growth channel, but paid use of News Corp content is the condition attached to that opportunity.