Item 1. FINANCIAL STATEMENTS

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Item 1. FINANCIAL STATEMENTS

NEWS CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited; millions, except per share amounts)


		For the three months ended March 31,				For the nine months ended March 31,
	Notes	2026		2025		2026		2025
Revenues:
Circulation and subscription		$	809	$	755	$	2,383	$	2,243
Advertising		322		308		1,028		1,014
Consumer		530		492		1,647		1,585
Real estate		365		318		1,136		1,052
Other		159		136		497		449
Total Revenues	3	2,185		2,009		6,691		6,343
Operating expenses		(952)		(904)		(2,901)		(2,819)
Selling, general and administrative		(890)		(815)		(2,586)		(2,431)
Depreciation and amortization		(122)		(114)		(357)		(339)
Impairment and restructuring charges	4	(18)		(13)		(67)		(51)
Equity losses of affiliates	5	(1)		—		(5)		(11)
Interest income (expense), net		5		1		20		(2)
Other, net	13	(18)		(13)		(27)		101
Income before income tax expense from continuing operations		189		151		768		791
Income tax expense from continuing operations	11	(68)		(44)		(255)		(229)
Net income from continuing operations		121		107		513		562
Net income from discontinued operations, net of tax	2	—		30		—		2
Net income		121		137		513		564
Net income attributable to noncontrolling interests from continuing operations		(32)		(26)		(119)		(135)
Net (income) loss attributable to noncontrolling interests from discontinued operations		—		(8)		—		8
Net income attributable to News Corporation stockholders		$	89	$	103	$	394	$	437

Net income attributable to News Corporation stockholders per share:	9
Basic
Continuing operations		$	0.16	$	0.14	$	0.70	$	0.75
Discontinued operations		$	—	$	0.04	—		0.02
		$	0.16	$	0.18	$	0.70	$	0.77
Diluted
Continuing operations		$	0.16	$	0.14	$	0.70	$	0.75
Discontinued operations		$	—	$	0.04	—		0.02
		$	0.16	$	0.18	$	0.70	$	0.77

The accompanying notes are an integral part of these unaudited consolidated financial statements.

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NEWS CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited; millions)


	For the three months ended March 31,				For the nine months ended March 31,
	2026		2025		2026		2025
Net income	$	121	$	137	$	513	$	564
Other comprehensive (loss) income:
Foreign currency translation adjustments	(12)		48		33		(200)
Net change in the fair value of cash flow hedges(a)	1		(5)		(3)		(11)
Benefit plan adjustments, net(b)	5		(1)		13		6
Other comprehensive (loss) income	(6)		42		43		(205)
Comprehensive income	115		179		556		359
Net income attributable to noncontrolling interests	(32)		(34)		(119)		(127)
Other comprehensive (income) loss attributable to noncontrolling interests(c)	(17)		(10)		(37)		64
Comprehensive income attributable to News Corporation stockholders	$	66	$	135	$	400	$	296

(a) Net of income tax expense (benefit) of nil and $(2) million for the three months ended March 31, 2026 and 2025, respectively, and $(1) million and $(4) million for the nine months ended March 31, 2026 and 2025, respectively.

(b) Net of income tax expense (benefit) of $1 million and nil for the three months ended March 31, 2026 and 2025, respectively, and $4 million and $2 million for the nine months ended March 31, 2026 and 2025, respectively.

The accompanying notes are an integral part of these unaudited consolidated financial statements.

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NEWS CORPORATION

CONSOLIDATED BALANCE SHEETS

(Millions, except share and per share amounts)


	Notes	As of March 31, 2026		As of June 30, 2025
		(unaudited)		(audited)
Assets:
Current assets:
Cash and cash equivalents		$	2,171	$	2,403
Receivables, net	13	1,778		1,562
Inventory, net		303		327
Other current assets		327		519

Total current assets		4,579		4,811
Non-current assets:
Investments	5	1,000		1,016
Property, plant and equipment, net		1,350		1,331
Operating lease right-of-use assets		765		789
Intangible assets, net		1,877		1,930
Goodwill		4,485		4,373
Deferred income tax assets, net	11	186		254
Other non-current assets	13	1,274		1,000

Total assets		$	15,516	$	15,504
Liabilities and Equity:
Current liabilities:
Accounts payable		$	384	$	335
Accrued expenses		1,041		1,036
Deferred revenue	3	556		498
Current borrowings	6	—		25
Other current liabilities	13	709		714

Total current liabilities		2,690		2,608
Non-current liabilities:
Borrowings	6	1,988		1,937
Retirement benefit obligations		115		117
Deferred income tax liabilities, net	11	54		57
Operating lease liabilities		854		904
Other non-current liabilities		534		492

Commitments and contingencies	10
Class A common stock(a)		4		4
Class B common stock(b)		2		2
Additional paid-in capital		10,567		11,058
Accumulated deficit		(452)		(747)
Accumulated other comprehensive loss		(1,537)		(1,543)
Total News Corporation stockholders’ equity		8,584		8,774
Noncontrolling interests		697		615
Total equity	7	9,281		9,389
Total liabilities and equity		$	15,516	$	15,504

(a) Class A common stock, $0.01 par value per share (“Class A Common Stock”), 1,500,000,000 shares authorized, 366,779,986 and 376,718,696 shares issued and outstanding, net of 27,368,413 treasury shares at par, at March 31, 2026 and June 30, 2025, respectively.

(b) Class B common stock, $0.01 par value per share (“Class B Common Stock”), 750,000,000 shares authorized, 183,457,255 and 188,666,990 shares issued and outstanding, net of 78,430,424 treasury shares at par, at March 31, 2026 and June 30, 2025, respectively.

The accompanying notes are an integral part of these unaudited consolidated financial statements.

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NEWS CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited; millions)


		For the nine months ended March 31,
	Notes	2026		2025
Operating activities:
Net income		$	513	$	564
Net loss (income) from discontinued operations, net of tax		—		(2)
Net income from continuing operations		$	513	$	562
Adjustments to reconcile net income from continuing operations to net cash provided by operating activities from continuing operations:
Depreciation and amortization		357		339
Operating lease expense		51		55
Equity losses of affiliates	5	5		11
Impairment charges	4	17		2
Deferred income taxes	11	69		83
Other, net	13	31		(99)
Change in operating assets and liabilities, net of acquisitions:

Receivables and other assets		(270)		(95)
Inventories, net		32		(49)
Accounts payable and other liabilities		10		(20)
Net cash provided by operating activities from continuing operations		815		789


Investing activities:
Capital expenditures		(280)		(250)
Proceeds from sales of property, plant and equipment		1		—
Acquisitions, net of cash acquired		(96)		(53)

Purchases of investments in equity affiliates and other		(53)		(141)
Proceeds from sales of investments in equity affiliates and other		65		263
Other, net		(16)		(13)
Net cash used in investing activities from continuing operations		(379)		(194)


Financing activities:
Borrowings	6	125		61
Repayment of borrowings	6	(100)		(200)
Repurchase of News Corp shares	7	(456)		(114)
Dividends paid		(149)		(128)
Other, net		(96)		(44)
Net cash used in financing activities from continuing operations		(676)		(425)


Cash flows from discontinued operations:
Net cash (used in) provided by operating activities from discontinued operations		(6)		157
Net cash used in investing activities from discontinued operations		—		(65)
Net cash used in financing activities from discontinued operations		—		(39)
Net cash (used in) provided by discontinued operations		(6)		53



Net change in cash, cash equivalents and restricted cash, including discontinued operations		(246)		223
Effect of exchange rate changes on cash, cash equivalents and restricted cash, including discontinued operations		14		(12)
Cash, cash equivalents and restricted cash, including discontinued operations, beginning of year		2,403		1,960
Cash, cash equivalents and restricted cash, including discontinued operations, end of period		2,171		2,171
Less: Cash and cash equivalents at end of period of discontinued operations		—		(76)
Cash and cash equivalents		$	2,171	$	2,095

The accompanying notes are an integral part of these unaudited consolidated financial statements.

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NEWS CORPORATION

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

News Corporation (together with its subsidiaries, “News Corporation,” “News Corp,” the “Company,” “we” or “us”) is a global diversified media and information services company comprised of businesses across a range of media, including: information services and news, digital real estate services and book publishing.

Basis of Presentation

The accompanying unaudited consolidated financial statements of the Company, which are referred to herein as the “Consolidated Financial Statements,” have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments consisting only of normal recurring adjustments necessary for a fair presentation have been reflected in these Consolidated Financial Statements. Operating results for the interim period presented are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2026. The preparation of the Company’s Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts that are reported in the Consolidated Financial Statements and accompanying disclosures. Actual results could differ from those estimates.

Intercompany transactions and balances have been eliminated. Equity investments in which the Company exercises significant influence but does not exercise control and is not the primary beneficiary are accounted for using the equity method. Investments in which the Company is not able to exercise significant influence over the investee are measured at fair value, if the fair value is readily determinable. If an investment’s fair value is not readily determinable, the Company will measure the investment at cost, less any impairment, plus or minus changes in fair value resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer.

The consolidated statements of operations are referred to herein as the “Statements of Operations.” The consolidated balance sheets are referred to herein as the “Balance Sheets.” The consolidated statements of cash flows are referred to herein as the “Statements of Cash Flows.”

The accompanying Consolidated Financial Statements and notes thereto should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2025 as filed with the Securities and Exchange Commission (the “SEC”) on August 6, 2025 (the “2025 Form 10-K”).

The Company’s fiscal year ends on the Sunday closest to June 30. Fiscal 2026 and fiscal 2025 include 52 weeks. All references to the three and nine months ended March 31, 2026 and 2025 relate to the three and nine months ended March 29, 2026 and March 30, 2025, respectively. For convenience purposes, the Company continues to date its Consolidated Financial Statements as of March 31.

Recently Issued Accounting Pronouncements

Issued

In December 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). The amendments in ASU 2023-09 require disaggregated disclosure of material categories in effective tax rate reconciliations as well as disclosure of income taxes paid by specific domestic and foreign jurisdictions. Additionally, the amendments eliminate certain disclosures currently required under Topic 740. ASU 2023-09 is effective for the Company’s annual reporting periods beginning on July 1, 2025, with early adoption permitted.

In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (“ASU 2024-03”). The amendments in ASU 2024-03 require public entities to disclose specified information about certain costs and expenses. ASU 2024-03 is effective for the Company’s annual reporting periods beginning on July 1, 2027 and interim reporting periods beginning on July 1, 2028, with early adoption permitted.

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NEWS CORPORATION

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

In July 2025, the FASB issued ASU 2025-05*, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets* (“ASU 2025-05”). The amendments in ASU 2025-05 provide entities with a practical expedient to simplify the estimation of expected credit losses on current accounts receivable and current contract assets that arise from transactions accounted for under ASC 606, Revenue from Contracts with Customers (“ASC 606”) by allowing the assumption that current conditions as of the balance sheet date will not change during the remaining life of the asset. ASU 2025-05 is effective for the Company for its annual reporting periods beginning July 1, 2026, and interim reporting periods within those annual reporting periods, with early adoption permitted. The Company is currently evaluating the impact ASU 2025-05 will have on its consolidated financial statements.

In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40) (“ASU 2025-06”). The amendments in ASU 2025-06 eliminate all references to project stages throughout Subtopic 350-40 and require an entity to begin capitalizing software costs when both (1) management has authorized and committed to funding the project and (2) it is probable that the project will be completed and the software will be used to perform the function intended (the “probable-to-complete recognition threshold”). ASU 2025-06 is effective for the Company for its annual reporting periods beginning July 1, 2028, and interim periods within those annual reporting periods, with early adoption permitted. The Company is currently evaluating the impact ASU 2025-06 will have on its consolidated financial statements.

In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements (“ASU 2025-11”). The amendments in ASU 2025-11 amend ASC Topic 270, Interim Reporting to improve the navigability of required interim disclosures and clarify when the guidance is applicable. ASU 2025-11 also adds a principle requiring entities to disclose material events that occurred since the end of the last annual reporting period. ASU 2025-11 is effective for the Company’s interim reporting periods beginning July 1, 2028, with early adoption permitted. ASU 2025-11 will not have a material impact on the Company’s consolidated financial statements.

In December 2025, the FASB issued ASU 2025-12, Codification Improvements (“ASU 2025-12”). The amendments in ASU 2025-12 represent changes that (1) clarify, (2) correct errors, or (3) make minor improvements to the Accounting Standards Codification that make it easier to understand and apply. ASU 2025-12 is effective for the Company’s annual reporting periods beginning July 1, 2027, and interim periods within those annual reporting periods, with early adoption permitted. ASU 2025-12 will not have a material impact on the Company’s consolidated financial statements.

NOTE 2. DISCONTINUED OPERATIONS

Foxtel

During the second quarter of fiscal 2025, the Company entered into a definitive agreement to sell the Foxtel Group (“Foxtel”) to DAZN Group Limited (“DAZN”), and the sale closed on April 2, 2025. The results of operations and cash flows of Foxtel have been classified as discontinued operations for all periods presented in accordance with ASC 205-20, Discontinued Operations, as the disposition reflected a strategic shift that had a major effect on the Company’s operations and financial results. Upon reclassification of Foxtel’s results, the Company determined that the Subscription Video Services segment was no longer a reportable segment and the residual results of the segment were aggregated into the News Media segment. News Media segment results have been recast to reflect this change for all periods presented. See Note 12—Segment Information.

In all periods presented, transactions between Foxtel and the continuing operations of the Company that did not continue after the sale are eliminated, whereas those that continued are no longer eliminated.

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NEWS CORPORATION

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

The following table summarizes the results of operations from the discontinued operations of Foxtel for the three and nine months ended March 31, 2025:


		For the three months ended March 31, 2025		For the nine months ended March 31, 2025
	(in millions)
Revenues		$	432	$	1,393
Operating expenses		(302)		(940)
Selling, general and administrative		(68)		(236)
Depreciation and amortization(a)		—		(156)
Impairment and restructuring charges		—		(2)

Interest expense, net		(16)		(51)
Other, net		(1)		(1)
Income before income tax expense		45		7
Income tax expense		(15)		(5)
Net income		30		2
Net (income) loss attributable to noncontrolling interests		(8)		8
Net income attributable to News Corporation stockholders		22		$	10

(a)Depreciation and amortization is not recognized for long-lived assets subsequent to their classification as held for sale.

NOTE 3. REVENUES

The following tables present the Company’s disaggregated revenues by type and segment for the three and nine months ended March 31, 2026 and 2025:


	For the three months ended March 31, 2026
	Dow Jones		Digital Real Estate Services		Book Publishing		News Media		Other		Total Revenues
	(in millions)
Revenues:
Circulation and subscription	$	511	$	2	$	—	$	296	$	—	$	809
Advertising	91		40		—		191		—		322
Consumer	—		—		530		—		—		530
Real estate	—		365		—		—		—		365
Other	17		66		25		51		—		159
Total Revenues	$	619	$	473	$	555	$	538	$	—	$	2,185

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NEWS CORPORATION

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS


	For the three months ended March 31, 2025
	Dow Jones		Digital Real Estate Services		Book Publishing		News Media		Other		Total Revenues
	(in millions)
Revenues:
Circulation and subscription	$	478	$	1	$	—	$	276	$	—	$	755
Advertising	86		36		—		186		—		308
Consumer	—		—		492		—		—		492
Real estate	—		318		—		—		—		318
Other	11		51		22		52		—		136
Total Revenues	$	575	$	406	$	514	$	514	$	—	$	2,009


	For the nine months ended March 31, 2026
	Dow Jones		Digital Real Estate Services		Book Publishing		News Media		Other		Total Revenues
	(in millions)
Revenues:
Circulation and subscription	$	1,499	$	6	$	—	$	878	$	—	$	2,383
Advertising	309		121		—		598		—		1,028
Consumer	—		—		1,647		—		—		1,647
Real estate	—		1,136		—		—		—		1,136
Other	45		200		75		177		—		497
Total Revenues	$	1,853	$	1,463	$	1,722	$	1,653	$	—	$	6,691


	For the nine months ended March 31, 2025
	Dow Jones		Digital Real Estate Services		Book Publishing		News Media		Other		Total Revenues
	(in millions)
Revenues:
Circulation and subscription	$	1,398	$	5	$	—	$	840	$	—	$	2,243
Advertising	292		109		—		613		—		1,014
Consumer	—		—		1,585		—		—		1,585
Real estate	—		1,052		—		—		—		1,052
Other	37		170		70		172		—		449
Total Revenues	$	1,727	$	1,336	$	1,655	$	1,625	$	—	$	6,343

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NEWS CORPORATION

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Contract Liabilities and Assets

The Company’s deferred revenue balance primarily relates to amounts received from customers for subscriptions paid in advance of the services being provided. The following table presents changes in the deferred revenue balance for the three and nine months ended March 31, 2026 and 2025:


	For the three months ended March 31,				For the nine months ended March 31,
	2026		2025		2026		2025
	(in millions)
Balance, beginning of period	$	474	$	431	$	498	$	483
Deferral of revenue	904		807		2,527		2,404
Recognition of deferred revenue(a)	(815)		(740)		(2,460)		(2,385)
Other	(7)		3		(9)		(1)
Balance, end of period	$	556	$	501	$	556	$	501

(a)For the three and nine months ended March 31, 2026, the Company recognized $206 million and $449 million, respectively, of revenue which was included in the opening deferred revenue balance. For the three and nine months ended March 31, 2025, the Company recognized $178 million and $428 million, respectively, of revenue which was included in the opening deferred revenue balance.

The Company had contract assets of $83 million and $52 million as of March 31, 2026 and 2025, respectively.

Other Revenue Disclosures

The Company typically expenses sales commissions to obtain a customer contract as incurred as the amortization period is twelve months or less. These costs are recorded within Selling, general and administrative in the Statements of Operations. The Company also does not capitalize significant financing components when the transfer of the good or service is paid within twelve months or less, or the consideration is received within twelve months or less of the transfer of the good or service.

For the three and nine months ended March 31, 2026, the Company recognized approximately $123 million and $335 million, respectively, in revenues related to performance obligations that were satisfied or partially satisfied in a prior reporting period. The remaining transaction price related to unsatisfied performance obligations as of March 31, 2026 was approximately $1,288 million, of which approximately $134 million is expected to be recognized over the remainder of fiscal 2026, $438 million is expected to be recognized in fiscal 2027 and $246 million is expected to be recognized in fiscal 2028, with the remainder to be recognized thereafter. These amounts do not include (i) contracts with an expected duration of one year or less, (ii) contracts for which variable consideration is determined based on the customer’s subsequent sale or usage and (iii) variable consideration allocated to performance obligations accounted for under the series guidance that meets the allocation objective under ASC 606.

NOTE 4. IMPAIRMENT AND RESTRUCTURING CHARGES

During the three and nine months ended March 31, 2026, the Company recorded impairment and restructuring charges of $18 million and $67 million, including restructuring charges of $14 million and $50 million, respectively.

During the three and nine months ended March 31, 2025, the Company recorded impairment and restructuring charges of $13 million and $51 million, including restructuring charges of $11 million and $49 million, respectively.

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NEWS CORPORATION

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Changes in restructuring program liabilities were as follows:


	For the three months ended March 31,
	2026				2025
	One time employee termination benefits		Other costs		Total		One time employee termination benefits		Other costs		Total
	(in millions)
Balance, beginning of period	$	21	$	45	$	66	$	18	$	31	$	49
Additions	14		—		14		11		—		11
Payments	(14)		(1)		(15)		(12)		(3)		(15)
Other	(1)		(1)		(2)		(1)		1		—
Balance, end of period	$	20	$	43	$	63	$	16	$	29	$	45


	For the nine months ended March 31,
	2026				2025
	One time employee termination benefits		Other costs		Total		One time employee termination benefits		Other costs		Total
	(in millions)
Balance, beginning of period	$	42	$	46	$	88	$	25	$	34	$	59
Additions	49		1		50		47		2		49
Payments	(74)		(4)		(78)		(54)		(7)		(61)
Other	3		—		3		(2)		—		(2)
Balance, end of period	$	20	$	43	$	63	$	16	$	29	$	45

As of March 31, 2026, restructuring liabilities of $23 million were included in the Balance Sheet in Other current liabilities and $40 million were included in Other non-current liabilities.

NOTE 5. INVESTMENTS

The Company’s investments were comprised of the following:


	Ownership Percentage as of March 31, 2026	As of March 31, 2026		As of June 30, 2025
		(in millions)
Equity method investments(a)	various	$	98	$	85
Equity and other securities(b)	various	902		931
Total Investments		$	1,000	$	1,016

(a)Equity method investments include News UK’s joint venture with DMG Media.

(b)Equity and other securities are primarily comprised of the Company’s interest in DAZN, certain investments in China, REA Group’s investment in Athena Home Loans and Nexxen International, Ltd.

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NEWS CORPORATION

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

The Company has equity securities with quoted prices in active markets as well as equity securities without readily determinable fair market values. Equity securities without readily determinable fair market values are valued at cost, less any impairment, plus or minus changes in fair value resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. The components comprising total gains and losses on equity securities are set forth below:


	For the three months ended March 31,				For the nine months ended March 31,
	2026		2025		2026		2025
	(in millions)				(in millions)
Total gains (losses) recognized on equity securities	$	(21)	$	(12)	$	(34)	$	16
Less: Net gains (losses) recognized on equity securities sold	—		(1)		(1)		(1)
Unrealized gains (losses) recognized on equity securities held at end of period	$	(21)	$	(11)	$	(33)	$	17

Equity Losses of Affiliates

The Company’s share of the losses of its equity affiliates was $1 million and $5 million for the three and nine months ended March 31, 2026, respectively, and nil and $11 million for the corresponding periods of fiscal 2025, respectively.

NOTE 6. BORROWINGS

The Company’s total borrowings consist of the following:


	Interest rate at March 31, 2026		Maturity at March 31, 2026	As of March 31, 2026		As of June 30, 2025
				(in millions)
News Corporation
2026 Term loan A(a)	4.961	%	Mar 27, 2031	$	499	$	—
2022 Term loan A(a)	N/A		N/A	—		475
2022 Senior notes	5.125	%	Feb 15, 2032	495		494
2021 Senior notes	3.875	%	May 15, 2029	994		993
REA Group(b)
2024 REA credit facility — tranche 1(c)	5.76	%	Sep 15, 2028	—		—

Total borrowings				1,988		1,962
Less: current portion(d)				—		(25)
Long-term borrowings				$	1,988	$	1,937

(a)In March 2026, the Company entered into the 2026 Credit Agreement (as defined below). The Company has an interest rate swap derivative as discussed in Note 8—Financial Instruments and Fair Value Measurements. For the three months ended March 31, 2026, the Company was paying interest at an effective interest rate of 3.458%.

(b)Borrowings under this facility are incurred by REA Group and certain of its subsidiaries (REA Group and certain of its subsidiaries, the “REA Debt Group”), consolidated but non wholly-owned subsidiaries of News Corp, and are only guaranteed by the REA Debt Group and are non-recourse to News Corp.

(c)This facility was amended during the nine months ended March 31, 2026 to reduce the total amount available under the facility to A$200 million. As of March 31, 2026, REA Group had total undrawn commitments of A$200 million available under this facility.

(d)The current portion of long term debt as of June 30, 2025 relates to required principal repayments on the 2022 Term Loan A.

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NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

HarperCollins Equipment Lease

In October 2025, HarperCollins entered into a finance leasing arrangement for up to $120 million of equipment for a new warehouse (the “Equipment Lease”). Interest accrues on amounts drawn under the Equipment Lease based on the Term SOFR plus a margin of 1.475%. The Equipment Lease may be drawn on until June 30, 2028, after which lease payments commence for a term of 7 years. The lease obligations are secured by the acquired equipment, and ownership of the equipment acquired under the Equipment Lease will transfer to HarperCollins at the end of the lease term. The Equipment Lease will be classified as a finance lease on the Company’s balance sheet upon commencement.

2026 Amended and Restated Credit Agreement

On March 27, 2026, the Company entered into an Amended and Restated Credit Agreement (the “2026 Credit Agreement”) that provides $1.5 billion of unsecured credit facilities (the “2026 Facilities”) to the Company to refinance its existing 2022 Credit Agreement and for general corporate purposes. The 2026 Facilities are comprised of a $1 billion five-year unsecured revolving credit facility (the “2026 Revolving Facility”) and a $500 million five-year unsecured term loan A credit facility (the “2026 Term A Facility,” and the loans under the 2026 Term A Facility are collectively referred to as “2026 Term A Loans”). The 2026 Revolving Facility has a sublimit of $100 million available for issuances of letters of credit. Under the 2026 Credit Agreement, the Company may request increases with respect to either of the 2026 Facilities in an aggregate principal amount not to exceed $250 million.

The loans under the 2026 Revolving Facility will not amortize. The 2026 Term A Loans will amortize in equal quarterly installments in an aggregate annual amount equal to —%, 2.5%, 2.5%, 5.0% and 5.0%, respectively, of the original principal amount of the 2026 Term A Facility for each 12-month period commencing on June 30, 2026. All outstanding amounts under the 2026 Credit Agreement with respect to the 2026 Facilities are due on March 27, 2031, unless earlier terminated in the circumstances set forth in the 2026 Credit Agreement. The Company may request that the maturity date of the revolving credit commitments under the 2026 Revolving Facility be extended under certain circumstances as set forth in the 2026 Credit Agreement for up to two additional one-year periods. The Company may also request that the maturity date of the 2026 Term A Facility be extended under certain circumstances as set forth in the 2026 Credit Agreement by at least one year.

Interest on borrowings is based on either (a) an Alternative Currency Term Rate formula, (b) a Term SOFR formula, (c) an Alternative Currency Daily Rate formula ((a) through (c) each, a “Relevant Rate”) or (d) the Base Rate formula, each as set forth in the 2026 Credit Agreement. The applicable margin for borrowings under the 2026 Facilities and the commitment fee for undrawn balances under the 2026 Revolving Facility are based on the pricing grid in the 2026 Credit Agreement, which varies based on the Company’s debt rating as defined in the 2026 Credit Agreement. As of March 31, 2026, the Company was paying commitment fees of 0.15% on any undrawn balance under the 2026 Revolving Facility and, with respect to any outstanding borrowings under the 2026 Facilities, an applicable margin of 0.25% for a Base Rate borrowing and 1.25% for a Relevant Rate borrowing.

The 2026 Credit Agreement contains certain customary affirmative and negative covenants and events of default with customary exceptions, including limitations on the ability of the Company and the Company’s subsidiaries to incur liens, merge into or consolidate with any other entity, incur subsidiary debt or dispose of all or substantially all of its assets or all or substantially all of the stock of all subsidiaries taken as a whole. In addition, the 2026 Credit Agreement requires the Company to maintain an adjusted operating income net leverage ratio of not more than 3.5 to 1.0, subject to certain adjustments following a material acquisition.

Covenants

The Company’s borrowings and those of its consolidated subsidiaries contain customary representations, covenants and events of default, including those discussed above and in the Company’s 2025 Form 10-K. If any of the events of default occur and are not cured within applicable grace periods or waived, any unpaid amounts under the applicable debt agreements may be declared immediately due and payable. The Company was in compliance with all applicable covenants as of March 31, 2026.

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NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 7. EQUITY

The following tables summarize changes in equity for the three and nine months ended March 31, 2026 and 2025:


	For the three months ended March 31, 2026
	Class A Common Stock			Class B Common Stock			Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss		Total News Corp Equity		Non-controlling Interests		Total Equity
	Shares	Amount		Shares	Amount
	(in millions)
Balance, December 31, 2025	372	$	4	186	$	2	$	10,809	$	(509)	$	(1,514)	$	8,792	$	670	$	9,462

Net income	—	—		—	—		—		89		—		89		32		121
Other comprehensive (loss) income	—	—		—	—		—		—		(23)		(23)		17		(6)
Dividends	—	—		—	—		(55)		—		—		(55)		(45)		(100)
News Corp share repurchases	(5)	—		(2)	—		(162)		(32)		—		(194)		—		(194)
Other	—	—		—	—		(25)		—		—		(25)		23		(2)
Balance, March 31, 2026	367	$	4	184	$	2	$	10,567	$	(452)	$	(1,537)	$	8,584	$	697	$	9,281


	For the three months ended March 31, 2025
	Class A Common Stock			Class B Common Stock			Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss		Total News Corp Equity		Non-controlling Interests		Total Equity
	Shares	Amount		Shares	Amount
	(in millions)
Balance, December 31, 2024	378	$	4	189	$	2	$	11,141	$	(1,574)	$	(1,424)	$	8,149	$	876	$	9,025

Net income	—	—		—	—		—		103		—		103		34		137
Other comprehensive income	—	—		—	—		—		—		32		32		10		42
Dividends	—	—		—	—		(57)		—		—		(57)		(36)		(93)
News Corp share repurchases	(1)	—		—	—		(28)		(9)		—		(37)		—		(37)
Other	—	—		—	—		14		(1)		—		13		(6)		7
Balance, March 31, 2025	377	$	4	189	$	2	$	11,070	$	(1,481)	$	(1,392)	$	8,203	$	878	$	9,081


	For the nine months ended March 31, 2026
	Class A Common Stock			Class B Common Stock			Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss		Total News Corp Equity		Non-controlling Interests		Total Equity
	Shares	Amount		Shares	Amount
	(in millions)
Balance, June 30, 2025	377	$	4	189	$	2	$	11,058	$	(747)	$	(1,543)	$	8,774	$	615	$	9,389

Net income	—	—		—	—		—		394		—		394		119		513
Other comprehensive income	—	—		—	—		—		—		6		6		37		43
Dividends	—	—		—	—		(112)		—		—		(112)		(92)		(204)
News Corp share repurchases	(11)	—		(5)	—		(364)		(99)		—		(463)		—		(463)
Other	1	—		—	—		(15)		—		—		(15)		18		3
Balance, March 31, 2026	367	$	4	184	$	2	$	10,567	$	(452)	$	(1,537)	$	8,584	$	697	$	9,281

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NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS


	For the nine months ended March 31, 2025
	Class A Common Stock			Class B Common Stock			Additional Paid-in Capital		Accumulated Deficit		Accumulated Other Comprehensive Loss		Total News Corp Equity		Non-controlling Interests		Total Equity
	Shares	Amount		Shares	Amount
	(in millions)
Balance, June 30, 2024	379	$	4	190	$	2	$	11,254	$	(1,889)	$	(1,251)	$	8,120	$	891	$	9,011

Net income	—	—		—	—		—		437		—		437		127		564
Other comprehensive loss	—	—		—	—		—		—		(141)		(141)		(64)		(205)
Dividends	—	—		—	—		(114)		—		—		(114)		(71)		(185)
News Corp share repurchases	(3)	—		(1)	—		(87)		(28)		—		(115)		—		(115)
Other	1	—		—	—		17		(1)		—		16		(5)		11
Balance, March 31, 2025	377	$	4	189	$	2	$	11,070	$	(1,481)	$	(1,392)	$	8,203	$	878	$	9,081

Stock Repurchases

On September 22, 2021, the Company announced a stock repurchase program authorizing the Company to purchase up to $1 billion in the aggregate of the Company’s outstanding Class A Common Stock and Class B Common Stock (the “2021 Repurchase Program”), which was completed during the three months ended March 31, 2026. On July 15, 2025, the Company announced a new stock repurchase program authorizing the Company to purchase up to $1 billion in the aggregate of the Company’s outstanding Class A Common Stock and Class B Common Stock (the “2025 Repurchase Program” and, together with the 2021 Repurchase Program, the “Stock Repurchase Programs”), which was in addition to the remaining authorized amount under the 2021 Repurchase Program at that time.

The manner, timing, number and share price of any repurchases will be determined by the Company at its discretion and will depend upon such factors as the market price of the stock, general market conditions, applicable securities laws, alternative investment opportunities and other factors. The 2025 Repurchase Program has no time limit and may be modified, suspended or discontinued at any time. As of March 31, 2026, there was no authorized amount remaining under the 2021 Repurchase Program, and the remaining authorized amount under the 2025 Repurchase Program was approximately $851 million.

The following tables summarize the shares repurchased under the Stock Repurchase Programs and subsequently retired and the related consideration paid, excluding associated taxes, fees, commissions or other costs, during the three and nine months ended March 31, 2026 and 2025:


	For the three months ended March 31,
	2026			2025
	Shares	Amount		Shares	Amount
	(in millions)
Class A Common Stock	5.1	$	126	0.8	$	24
Class B Common Stock	2.4	67		0.4	13
Total	7.5	$	193	1.2	$	37


	For the nine months ended March 31,
	2026			2025
	Shares	Amount		Shares	Amount
	(in millions)
Class A Common Stock	11.6	$	303	2.7	$	75
Class B Common Stock	5.2	156		1.3	40
Total	16.8	$	459	4.0	$	115

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NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Additionally, on February 6, 2026, REA Group announced a share repurchase program authorizing REA Group to purchase up to A$200 million of its outstanding fully paid ordinary shares listed on the Australian Securities Exchange (“ASX”) (ASX: REA). The on-market share repurchases will be conducted from time to time in the ordinary course of trading. The exact amount and timing of the repurchases will be subject to market conditions, REA Group’s share price and other factors and is at REA Group’s discretion. During the third quarter of fiscal 2026, REA Group repurchased A$70 million (approximately US$49 million) of its shares, with approximately A$130 million remaining under its repurchase program.

Stockholders Agreement

On September 8, 2025, the Company entered into a new stockholders agreement (the “New Stockholders Agreement”) with LGC Holdco, LLC (“LGC Holdco”) and certain Murdoch family trusts (collectively, the “LGC Family Trusts”). In connection with this decision, the stockholders agreement between the Company and the Murdoch Family Trust (See Note 12—Stockholders’ Equity in the 2025 Form 10-K) was terminated.

The New Stockholders Agreement limits the LGC Family Trusts and LGC Holdco from owning, collectively with certain Murdoch family members (the “Murdoch Individuals”), more than 44% of the outstanding voting power of the shares of the Company’s Class B Common Stock (“Class B Shares”) and requires the LGC Family Trusts and LGC Holdco to forfeit votes to the extent necessary to ensure that the Murdoch Individuals, the LGC Family Trusts and LGC Holdco collectively do not exceed 44% of the outstanding voting power of the Class B Shares, except where a Murdoch Individual votes their own shares differently from the others on any matter. In addition, the New Stockholders Agreement provides (a) the Company with a right of first refusal with respect to any underwritten public offering of the Class B Shares held by the LGC Family Trusts or LGC Holdco to anyone other than the Murdoch Individuals and their affiliates, subject to certain exceptions, and (b) the LGC Family Trusts and LGC Holdco with certain customary registration rights. The New Stockholders Agreement will terminate upon the distribution of all or substantially all of the Class B Shares held by the LGC Family Trusts or LGC Holdco.

Dividends

In February 2026, the Company’s Board of Directors (the “Board of Directors”) declared a semi-annual cash dividend of $0.10 per share for Class A Common Stock and Class B Common Stock. The dividend was paid on April 8, 2026 to stockholders of record as of March 11, 2026. The timing, declaration, amount and payment of future dividends to stockholders, if any, is within the discretion of the Board of Directors. The Board of Directors’ decisions regarding the payment of future dividends will depend on many factors, including the Company’s financial condition, earnings, capital requirements and debt facility covenants, other contractual restrictions, as well as legal requirements, regulatory constraints, industry practice, market volatility and other factors that the Board of Directors deems relevant.

NOTE 8. FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS

In accordance with ASC 820, Fair Value Measurements (“ASC 820”) fair value measurements are required to be disclosed using a three-tiered fair value hierarchy which distinguishes market participant assumptions into the following categories:

Level 1 — Quoted prices in active markets for identical assets or liabilities.
Level 2 — Observable inputs other than quoted prices included in Level 1. The Company could value assets and liabilities included in this level using dealer and broker quotations, certain pricing models, bid prices, quoted prices for similar assets and liabilities in active markets or other inputs that are observable or can be corroborated by observable market data.
Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. For the Company, this primarily includes the use of forecasted financial information and other valuation related assumptions such as discount rates and long term growth rates in the income approach as well as the market approach which utilizes certain market and transaction multiples.

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NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

The following table summarizes assets and liabilities, as applicable, measured at fair value:


	As of March 31, 2026								As of June 30, 2025
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
	(in millions)
Assets:
Interest rate derivatives—cash flow hedges	$	—	$	8	$	—	$	8	$	—	$	12	$	—	$	12
Equity and other securities	38		58		806		902		67		50		814		931
Total assets	$	38	$	66	$	806	$	910	$	67	$	62	$	814	$	943

Equity and Other Securities

The fair values of equity and other securities with quoted prices in active markets, which are classified as Level 1 in the fair value hierarchy outlined above, and those that rely on significant observable inputs other than quoted prices in active markets, which are classified as Level 2 in the fair value hierarchy outlined above, are determined based on the closing price at the end of each reporting period. The fair values of equity and other securities without readily determinable fair market values are determined based on cost, less any impairment, plus or minus changes in fair value resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. These securities are classified as Level 3 in the fair value hierarchy outlined above.

A rollforward of the Company’s equity and other securities classified as Level 3 is as follows:


	For the nine months ended March 31,
	2026		2025
	(in millions)
Balance - beginning of period	$	814	$	122
Additions(a)	14		42
Returns of capital	(2)		(5)
Measurement adjustments	(20)		3
Foreign exchange and other	—		2
Balance - end of period	$	806	$	164

(a)The additions for the nine months ended March 31, 2025 primarily relate to REA Group’s investment in Athena Home Loans.

Derivative Instruments

The Company is directly and indirectly affected by risks associated with changes in certain market conditions. When deemed appropriate, the Company uses derivative instruments to mitigate the potential impact of these market risks. The primary market risk managed by the Company through the use of derivative instruments relates to interest rate risk arising from floating rate News Corporation borrowings.

The Company formally designates qualifying derivatives as hedge relationships and applies hedge accounting when considered appropriate. The Company does not use derivative financial instruments for trading or speculative purposes.

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NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Derivatives are classified as current or non-current in the Balance Sheets based on their maturity dates. Refer to the table below for further details:


	Balance Sheet Classification	As of March 31, 2026		As of June 30, 2025
		(in millions)
Interest rate derivatives—cash flow hedges	Other current assets	$	6	$	7
Interest rate derivatives—cash flow hedges	Other non-current assets	$	2	$	5

Cash Flow Hedges

The Company utilizes interest rate derivatives to mitigate interest rate risk in relation to future interest payments.

The total notional value of interest rate swap derivatives designated for hedging was approximately $456 million as of March 31, 2026 for News Corporation borrowings. The maximum hedged term over which the Company is hedging exposure to variability in interest payments is to March 2027. As of March 31, 2026, the Company estimates that approximately $8 million of net derivative gains related to its interest rate swap derivative cash flow hedges included in Accumulated other comprehensive loss will be reclassified into the Statements of Operations within the next twelve months.

The following tables present the impact that changes in the fair values had on Accumulated other comprehensive loss and the Statements of Operations during the three and nine months ended March 31, 2026 and 2025 for derivatives designated as cash flow hedges:

Gains (losses) recognized in Accumulated other comprehensive loss for the three and nine months ended March 31, 2026 and 2025, by derivative instrument:


	For the three months ended March 31,				For the nine months ended March 31,
	2026		2025		2026		2025
	(in millions)
Interest rate derivatives—cash flow hedges	$	2	$	(3)	$	3	$	(3)

(Gains) losses reclassified from Accumulated other comprehensive loss into the Statements of Operations for the three and nine months ended March 31, 2026 and 2025, by derivative instrument:


	Income Statement Classification	For the three months ended March 31,				For the nine months ended March 31,
		2026		2025		2026		2025
		(in millions)
Interest rate derivatives—cash flow hedges	Interest income (expense), net	$	(2)	$	(3)	$	(7)	$	(10)

Other Fair Value Measurements

As of March 31, 2026, the carrying value of the Company’s outstanding borrowings approximates the fair value. The 2022 Senior Notes and the 2021 Senior Notes are classified as Level 2 and the remaining borrowings are classified as Level 3 in the fair value hierarchy.

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NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 9. EARNINGS (LOSS) PER SHARE

The following table sets forth the computation of basic and diluted earnings (loss) per share under ASC 260, Earnings per Share:


	For the three months ended March 31,				For the nine months ended March 31,
	2026		2025		2026		2025
	(in millions, except per share amounts)
Net income from continuing operations	$	121	$	107	$	513	$	562
Net income from discontinued operations, net of tax	—		30		—		2
Net income	121		137		513		564
Net income attributable to noncontrolling interests from continuing operations	(32)		(26)		(119)		(135)
Net income attributable to noncontrolling interests from discontinued operations	—		(8)		—		8
Net income attributable to News Corporation stockholders	$	89	$	103	$	394	$	437

Weighted-average number of shares of common stock outstanding - basic	554.0		567.2		559.8		568.3
Dilutive effect of equity awards	1.7		2.3		1.7		2.0
Weighted-average number of shares of common stock outstanding - diluted	555.7		569.5		561.5		570.3

Net income attributable to News Corporation stockholders per share:
Basic
Continuing operations	$	0.16	$	0.14	$	0.70	$	0.75
Discontinued operations	$	—	$	0.04	—		0.02
	$	0.16	$	0.18	$	0.70	$	0.77
Diluted
Continuing operations	$	0.16	$	0.14	$	0.70	$	0.75
Discontinued operations	$	—	$	0.04	—		0.02
	$	0.16	$	0.18	$	0.70	$	0.77

NOTE 10. COMMITMENTS AND CONTINGENCIES

Commitments

The Company has commitments under certain firm contractual arrangements to make future payments. These firm commitments secure the current and future rights to various assets and services to be used in the normal course of operations.

In connection with the 2026 Credit Agreement, the Company refinanced its Term A Loans under the 2022 Credit Agreement during the three and nine months ended March 31, 2026, which included extending the maturity date to March 2031 and modifying the timing of required principal payments. See Note 6—Borrowings.

During the nine months ended March 31, 2026, the Company entered into new leases, some of which will commence subsequent to fiscal 2026, and extended the terms of certain other leases. As a result, the Company has presented its commitments associated with its operating leases in the table below.

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NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS


	As of March 31, 2026
	Payments Due by Period
	Less than 1 year		1-3 years		3-5 years		More than 5 years		Total
	(in millions)
Operating leases	$	120	$	175	$	172	$	1,055	$	1,522

The Company’s remaining commitments as of March 31, 2026 have not changed significantly from the disclosures included in the 2025 Form 10-K.

Contingencies

The Company routinely is involved in various legal proceedings, claims and governmental inspections or investigations, including those discussed below. The outcome of these matters and claims is subject to significant uncertainty, and the Company often cannot predict what the eventual outcome of pending matters will be or the timing of the ultimate resolution of these matters. Fees, expenses, fines, penalties, judgments or settlement costs which might be incurred by the Company in connection with the various proceedings could adversely affect its results of operations and financial condition.

The Company establishes an accrued liability for legal claims when it determines that a loss is probable and the amount of the loss can be reasonably estimated. Once established, accruals are adjusted from time to time, as appropriate, in light of additional information. The amount of any loss ultimately incurred in relation to matters for which an accrual has been established may be higher or lower than the amounts accrued for such matters. Legal fees associated with litigation and similar proceedings are expensed as incurred. Except as otherwise provided below, for the contingencies disclosed for which there is at least a reasonable possibility that a loss may be incurred, the Company was unable to estimate the amount of loss or range of loss. The Company recognizes gain contingencies when the gain becomes realized or realizable.

Dow Jones

Beginning in August 2024, a number of purported class action complaints have been filed in the U.S. District Court for the Northern District of Illinois against certain pipe converters, distributors and the Company’s subsidiary, Oil Price Information Service, LLC (“OPIS”), alleging violations of federal and state antitrust laws. The complaints seek treble damages, injunctive relief and attorneys’ fees and costs. In May 2025, the Company entered into a settlement which would resolve the complaints. The settlement received preliminary court approval in July 2025 but remains subject to final approval. In September 2025, a similar purported class action was filed in the Supreme Court of British Columbia alleging violations of certain provisions of Canadian law and claiming damages and costs among other relief. The Company is currently evaluating this action, and it is not possible at this time to predict with any degree of certainty the ultimate outcome.

In addition, (i) in January 2025, OPIS received a grand jury subpoena issued by the U.S. District Court for the Northern District of California, from the U.S. Department of Justice Antitrust Division, and (ii) in April 2025, OPIS received a civil investigative demand (“CID”) from a state attorney general. Both the subpoena and the CID call for production of documents related to PVC pipe, including documents relating to the publication of the PVC and Pipe Weekly Report. OPIS is complying with its obligations under the subpoena and CID.

HarperCollins

Beginning in February 2021, a number of purported class action complaints have been filed in the U.S. District Court for the Southern District of New York (the “N.Y. District Court”) against Amazon.com, Inc. (“Amazon”) and certain publishers, including the Company’s subsidiary, HarperCollins Publishers, L.L.C. (“HarperCollins” and together with the other publishers, the “Publishers”), alleging violations of antitrust and competition laws. The complaints seek treble damages, injunctive relief and attorneys’ fees and costs. In August 2023, the N.Y. District Court dismissed the complaints in one of the cases with prejudice and in March 2024, the court dismissed the complaint against the Publishers in the remaining case with prejudice. However, the plaintiffs’ time to appeal the N.Y. District Court’s decision to dismiss in the latter case does not expire until the complaint against Amazon in that case has been finally determined. While it is not possible at this time to predict with any degree of certainty the ultimate outcome of these actions, HarperCollins believes it has been compliant with applicable laws and intends to defend itself vigorously.

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NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

In September 2025, a class action lawsuit against Anthropic PBC, in which HarperCollins is a class member, received preliminary court approval for settlement. As the timing and final amount of any potential proceeds receivable under the settlement remain uncertain, the Company has not recognized any gain related to this matter for the three and nine months ended March 31, 2026.

U.K. Newspaper Matters

Civil claims have been brought against the Company with respect to, among other things, voicemail interception and inappropriate payments to public officials at the Company’s former publication, The News of the World, and at The Sun, and related matters (the “U.K. Newspaper Matters”). The Company has admitted liability in many civil cases and has settled a number of cases. The Company also settled a number of claims through a private compensation scheme which was closed to new claims after April 8, 2013.

In connection with the separation of the Company from Twenty-First Century Fox, Inc. (“21st Century Fox”) on June 28, 2013, the Company and 21st Century Fox agreed in the Separation and Distribution Agreement that 21st Century Fox would indemnify the Company for payments made after such date arising out of civil claims and investigations relating to the U.K. Newspaper Matters as well as legal and professional fees and expenses paid in connection with the previously concluded criminal matters, other than fees, expenses and costs relating to employees (i) who are not directors, officers or certain designated employees or (ii) with respect to civil matters, who are not co-defendants with the Company or 21st Century Fox. 21st Century Fox’s indemnification obligations with respect to these matters are settled on an after-tax basis. In March 2019, as part of the separation of FOX Corporation (“FOX”) from 21st Century Fox, the Company, News Corp Holdings UK & Ireland, 21st Century Fox and FOX entered into a Partial Assignment and Assumption Agreement, pursuant to which, among other things, 21st Century Fox assigned, conveyed and transferred to FOX all of its indemnification obligations with respect to the U.K. Newspaper Matters.

The net expense related to the U.K. Newspaper Matters in Selling, general and administrative was nil and $4 million for the three months ended March 31, 2026 and 2025, respectively, and $1 million and $10 million for the nine months ended March 31, 2026 and 2025, respectively. As of March 31, 2026, the Company has provided for its best estimate of the liability for the claims that have been filed and costs incurred and has accrued approximately $16 million. The amount to be indemnified by FOX of approximately $24 million was recorded as a receivable in Other current assets on the Balance Sheet as of March 31, 2026. It is not possible to estimate the liability or corresponding receivable for any additional claims that may be filed given the information that is currently available to the Company. If more claims are filed and additional information becomes available, the Company will update the liability provision and corresponding receivable for such matters.

The Company is not able to predict the ultimate outcome or cost of the civil claims. It is possible that these proceedings and any adverse resolution thereof could damage its reputation, impair its ability to conduct its business and adversely affect its results of operations and financial condition.

NOTE 11. INCOME TAXES

At the end of each interim period, the Company estimates its annual effective tax rate and applies that rate to ordinary quarterly earnings. The tax expense or benefit related to significant, unusual or extraordinary items that will be separately reported or reported net of their related tax effect are individually computed and recognized in the interim period in which those items occur. In addition, the effects of changes in enacted tax laws or rates or tax status are recognized in the interim period in which the change occurs.

For the three months ended March 31, 2026, the Company recorded income tax expense of $68 million on pre-tax income from continuing operations of $189 million, resulting in an effective tax rate that was higher than the U.S. statutory tax rate. The tax rate was impacted by foreign operations which are subject to higher tax rates, remeasurement losses on certain investments with little or no tax benefit and valuation allowances recorded against tax benefits in certain businesses.

For the nine months ended March 31, 2026, the Company recorded income tax expense of $255 million on pre-tax income from continuing operations of $768 million, resulting in an effective tax rate that was higher than the U.S. statutory tax rate. The tax rate was impacted by foreign operations which are subject to higher tax rates, remeasurement losses on certain investments with little or no tax benefit and valuation allowances recorded against tax benefits in certain businesses.

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NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

For the three months ended March 31, 2025, the Company recorded income tax expense of $44 million on pre-tax income from continuing operations of $151 million, resulting in an effective tax rate that was higher than the U.S. statutory tax rate. The tax rate was impacted by foreign operations which are subject to higher tax rates and valuation allowances recorded against tax benefits in certain businesses.

For the nine months ended March 31, 2025, the Company recorded income tax expense of $229 million on pre-tax income from continuing operations of $791 million, resulting in an effective tax rate that was higher than the U.S. statutory tax rate. The tax rate was impacted by foreign operations which are subject to higher tax rates and valuation allowances recorded against tax benefits in certain businesses offset by lower taxes on the disposition of REA Group’s interest in PropertyGuru.

Management assesses available evidence to determine whether sufficient future taxable income will be generated to permit the use of existing deferred tax assets. Based on management’s assessment of available evidence, it has been determined that it is more likely than not that certain deferred tax assets may not be realized and therefore, a valuation allowance has been established against those tax assets.

The Company’s tax returns are subject to on-going review and examination by various tax authorities. Tax authorities may not agree with the treatment of items reported in the Company’s tax returns, and therefore the outcome of tax reviews and examinations can be unpredictable. The Company is currently undergoing audits with the U.S. Internal Revenue Service for the fiscal year ended June 30, 2024 and certain U.S. states and foreign jurisdictions for various years. The Company believes it has appropriately accrued for the expected outcome of uncertain tax matters and believes such liabilities represent a reasonable provision for taxes ultimately expected to be paid. However, the Company may need to accrue additional income tax expense and its liability may need to be adjusted as new information becomes known and as these tax examinations continue to progress, or as settlements or litigations occur.

On July 4, 2025, H.R. 1 - One Big Beautiful Bill Act (“OBBBA”) was enacted into law. The OBBBA makes permanent key elements of the Tax Cuts and Jobs Act, including 100% bonus depreciation, domestic research cost expensing, and the business interest expense limitation. Certain provisions of OBBBA are effective for the Company’s fiscal 2026, while others will take effect beginning in fiscal 2027. ASC 740, Income Taxes requires the effects of changes in tax rates and laws on deferred tax balances to be recognized in the period in which the legislation is enacted. The OBBBA maintains the U.S. Federal income tax rate of 21%. The Company does not expect OBBBA to materially impact its effective tax rate, however the Company continues to assess the impact of OBBBA including future expected guidance from the U.S. Treasury Department and States.

The Organization for Economic Cooperation and Development (“OECD”) has proposed a global minimum tax of 15% of reported profits (“Pillar 2”) that has been agreed upon in principle by over 140 countries. Following an executive order issued by the United States in January 2025 announcing opposition to aspects of these rules, the G7 issued a statement on June 28, 2025 acknowledging that U.S. parented groups would be exempt from certain aspects of Pillar 2 in recognition of existing U.S. minimum tax rules to which they are subject. On January 5, 2026, the OECD announced a political and technical agreement by the Inclusive Framework on a comprehensive package for a “side-by-side arrangement” (the “Package”). The Package, in the form of administrative guidance, includes a new Simplified Effective Tax Rate Safe Harbour, a one-year extension of the Transitional Country-by-Country Reporting Safe Harbour, a new Substance-based Tax Incentive Safe Harbour and two Safe Harbours related to a Side-by-Side System. This administrative guidance will be incorporated into the Commentary to the Global Anti-Base Erosion Model Rules. The Company does not expect the Package to materially impact its effective tax rate, however the Company continues to assess the impact of the Package, including future expected guidance from the OECD.

Several jurisdictions have rolled back their digital services taxes, and certain jurisdictions continue to maintain or have enacted new digital services taxes. Those taxes have had limited impact on the Company’s overall tax obligations, but the Company continues to monitor them.

The Company paid gross income taxes of $187 million and $150 million during the nine months ended March 31, 2026 and 2025, respectively, and received tax refunds of $2 million and $2 million, respectively.

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NEWS CORPORATION

NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 12. SEGMENT INFORMATION

The Company manages and reports its businesses in the following five segments:

Dow Jones—The Dow Jones segment consists of Dow Jones, a global provider of news and business information whose products target individual consumers and enterprise customers and are distributed through a variety of media channels including websites, mobile apps, newspapers, newswires, newsletters, magazines, proprietary databases, live journalism, video and podcasts. Dow Jones’s consumer products include premier brands such as The Wall Street Journal, Barron’s, MarketWatch and Investor’s Business Daily. Dow Jones’s professional information products, which target enterprise customers, include Dow Jones Risk & Compliance, a leading provider of data and other solutions to help customers identify and manage regulatory, corporate, geopolitical, security and reputational risk with tools focused on financial crime, sanctions, trade and other risks and compliance requirements, Dow Jones Energy, a leading provider of pricing data, news, insights, analysis and other information for energy commodities and key base chemicals, Factiva, a leading provider of global business content, and Dow Jones Newswires, which distributes real-time business news, information and analysis to financial professionals and investors.
Digital Real Estate Services—The Digital Real Estate Services segment consists of the Company’s 61.6% interest in REA Group and 80% interest in Move. The remaining 20% interest in Move is held by REA Group. REA Group is a market-leading digital media business specializing in property and is listed on the Australian Securities Exchange (“ASX”) (ASX: REA). REA Group advertises property and property-related services on its websites and mobile apps, including Australia’s leading residential, commercial and share property websites, realestate.com.au, realcommercial.com.au and Flatmates.com.au, property.com.au and Housing.com in India. In addition, REA Group provides property-related data to the financial sector and financial services through a digital property search and financing experience and a mortgage broking offering.

Move is a leading provider of digital real estate services in the U.S. and primarily operates Realtor.com®, a premier real estate information, advertising and services platform. Move offers real estate advertising solutions to agents and brokers, including its RealPRO SelectSM, ConnectionsSM Plus and Listing Toolkit products as well as its referral-based services, ReadyConnect ConciergeSM and RealChoiceTM Selling. Move also offers online tools and services to do-it-yourself landlords and tenants.

Book Publishing—The Book Publishing segment consists of HarperCollins, the second largest consumer book publisher in the world, with operations in 15 countries and particular strengths in general fiction, nonfiction, children’s and religious publishing. HarperCollins owns more than 120 branded publishing imprints, including Harper, William Morrow, Mariner, HarperCollins Children’s Books, Avon, Harlequin and Christian publishers Zondervan and Thomas Nelson, and publishes works by well-known authors such as Harper Lee, George Orwell, Agatha Christie and Zora Neale Hurston, as well as global author brands including J.R.R. Tolkien, C.S. Lewis, Daniel Silva, Karin Slaughter and Dr. Martin Luther King, Jr. It is home to many beloved children’s books and series and a significant Christian publishing business.
News Media—The News Media segment consists primarily of News Corp Australia, News UK and the New York Post and includes The Australian, The Daily Telegraph, Herald Sun, The Courier Mail, The Advertiser and the news.com.au website in Australia, The Times, The Sunday Times, The Sun, The Sun on Sunday and thesun.co.uk in the U.K. and the-sun.com in the U.S. This segment also includes News Broadcasting (formerly Wireless Group), operator of talkSPORT, the leading sports radio network in the U.K., Talk in the U.K., Australian News Channel, which operates the Sky News Australia network, Australia’s 24-hour multi-channel, multi-platform news service, and Storyful, a social media content agency.
Other—The Other segment consists primarily of general corporate overhead expenses, strategy costs and costs related to the U.K. Newspaper Matters.

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NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

The Company’s chief operating decision maker (“CODM”) is its Chief Executive Officer. Segment EBITDA is the primary measure used by the Company’s CODM to evaluate the performance of, and allocate resources within, the Company’s businesses. The CODM uses Segment EBITDA to compare actual results to budget and uses this information to, among other things, allocate resources such as incentive compensation to segment managers. Segment EBITDA is defined as revenues less operating expenses and selling, general and administrative expenses. Segment EBITDA does not include: depreciation and amortization, impairment and restructuring charges, equity losses of affiliates, interest (expense) income, net, other, net, income tax (expense) benefit and net income (loss) from discontinued operations, net of tax. Segment EBITDA may not be comparable to similarly titled measures reported by other companies, since companies and investors may differ as to what items should be included in the calculation of Segment EBITDA. Segment EBITDA provides management, investors and equity analysts with a measure to analyze the operating performance of each of the Company’s business segments and its enterprise value against historical data and competitors’ data, although historical results may not be indicative of future results (as operating performance is highly contingent on many factors, including customer tastes and preferences).

Segment information is summarized as follows:


	For the three months ended March 31, 2026
	Dow Jones		Digital Real Estate Services		Book Publishing		News Media		Other		Total
	(in millions)
Segment information:
Revenues	$	619	$	473	$	555	$	538	$	—	$	2,185
Significant segment expenses:
Operating expenses	(244)		(46)		(366)		(296)		—		(952)
Selling, general and administrative	(228)		(272)		(116)		(227)		(47)		(890)
Segment EBITDA	$	147	$	155	$	73	$	15	$	(47)	$	343
Depreciation and amortization											(122)
Impairment and restructuring charges											(18)
Equity losses of affiliates											(1)
Interest income, net											5
Other, net											(18)
Income before income tax expense from continuing operations											189
Income tax expense from continuing operations											(68)
Net income from continuing operations											121
Net income from discontinued operations, net of tax											—
Net income											$	121

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	For the three months ended March 31, 2025
	Dow Jones		Digital Real Estate Services		Book Publishing		News Media		Other		Total
	(in millions)
Segment information:
Revenues	$	575	$	406	$	514	$	514	$	—	$	2,009
Significant segment expenses:
Operating expenses	(234)		(46)		(349)		(275)		—		(904)
Selling, general and administrative	(209)		(236)		(101)		(206)		(63)		(815)
Segment EBITDA	$	132	$	124	$	64	$	33	$	(63)	$	290
Depreciation and amortization											(114)
Impairment and restructuring charges											(13)
Equity losses of affiliates											—
Interest income, net											1
Other, net											(13)
Income before income tax expense from continuing operations											151
Income tax expense from continuing operations											(44)
Net income from continuing operations											107
Net income from discontinued operations, net of tax											30
Net income											$	137


	For the nine months ended March 31, 2026
	Dow Jones		Digital Real Estate Services		Book Publishing		News Media		Other		Total
	(in millions)
Segment information:
Revenues	$	1,853	$	1,463	$	1,722	$	1,653	$	—	$	6,691
Significant segment expenses:
Operating expenses	(719)		(147)		(1,152)		(883)		—		(2,901)
Selling, general and administrative	(652)		(797)		(340)		(655)		(142)		(2,586)
Segment EBITDA	$	482	$	519	$	230	$	115	$	(142)	$	1,204
Depreciation and amortization											(357)
Impairment and restructuring charges											(67)
Equity losses of affiliates											(5)
Interest income, net											20
Other, net											(27)
Income before income tax expense from continuing operations											768
Income tax expense from continuing operations											(255)
Net income from continuing operations											513
Net income from discontinued operations, net of tax											—
Net income											$	513

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	For the nine months ended March 31, 2025
	Dow Jones		Digital Real Estate Services		Book Publishing		News Media		Other		Total
	(in millions)
Segment information:
Revenues	$	1,727	$	1,336	$	1,655	$	1,625	$	—	$	6,343
Significant segment expenses:
Operating expenses	(713)		(138)		(1,104)		(864)		—		(2,819)
Selling, general and administrative	(577)		(749)		(305)		(636)		(164)		(2,431)
Segment EBITDA	$	437	$	449	$	246	$	125	$	(164)	$	1,093
Depreciation and amortization											(339)
Impairment and restructuring charges											(51)
Equity losses of affiliates											(11)
Interest expense, net											(2)
Other, net											101
Income before income tax expense from continuing operations											791
Income tax expense from continuing operations											(229)
Net income from continuing operations											562
Net income from discontinued operations, net of tax											2
Net income											$	564


	For the three months ended March 31,				For the nine months ended March 31,
	2026		2025		2026		2025
	(in millions)
Depreciation and amortization:
Dow Jones	$	41	$	40	$	122	$	117
Digital Real Estate Services	39		35		114		107
Book Publishing	15		14		44		40
News Media	26		24		74		72
Other	1		1		3		3
Total Depreciation and amortization	$	122	$	114	$	357	$	339


	For the three months ended March 31,				For the nine months ended March 31,
	2026		2025		2026		2025
	(in millions)
Capital expenditures:
Dow Jones	$	26	$	30	$	64	$	68
Digital Real Estate Services	39		39		114		114
Book Publishing	7		2		21		10
News Media	24		21		72		58
Other	4		—		9		—
Total Capital expenditures	$	100	$	92	$	280	$	250

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NOTES TO THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS


	As of March 31, 2026		As of June 30, 2025
	(in millions)
Total assets:
Dow Jones	$	4,137	$	4,134
Digital Real Estate Services	3,412		3,202
Book Publishing	2,834		2,767
News Media	2,133		2,102
Other(a)	2,000		2,283
Investments	1,000		1,016

Total assets	$	15,516	$	15,504

(a)The Other segment primarily includes Cash and cash equivalents.


	As of March 31, 2026		As of June 30, 2025
	(in millions)
Goodwill and intangible assets, net:
Dow Jones	$	3,254	$	3,256
Digital Real Estate Services	1,889		1,798
Book Publishing	913		941
News Media	306		308
Total Goodwill and intangible assets, net	$	6,362	$	6,303

NOTE 13. ADDITIONAL FINANCIAL INFORMATION

Receivables, net

Receivables are presented net of allowances, which reflect the Company’s expected credit losses based on historical experience as well as current and expected economic conditions.

Receivables, net consist of:


	As of March 31, 2026		As of June 30, 2025
	(in millions)
Receivables	$	1,832	$	1,618
Less: allowances	(54)		(56)
Receivables, net	$	1,778	$	1,562

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Other Non-Current Assets

The following table sets forth the components of Other non-current assets:


	As of March 31, 2026		As of June 30, 2025
	(in millions)
Royalty advances to authors	$	400	$	377
Non-current receivables	359		320
Retirement benefit assets	174		165
News America Marketing deferred consideration(a)	205		—
Other	136		138
Total Other non-current assets	$	1,274	$	1,000

(a)The balance of the News America Marketing deferred consideration was reclassified to Other non-current assets during the nine months ended March 31, 2026, as the Company has amended the agreement to extend the payment due date.

Other Current Liabilities

The following table sets forth the components of Other current liabilities:


	As of March 31, 2026		As of June 30, 2025
	(in millions)
Royalties and commissions payable	$	253	$	202
Allowance for sales returns	133		138
Current operating lease liabilities	87		74



Other	236		300
Total Other current liabilities	$	709	$	714

Other, net

The following table sets forth the components of Other, net:


	For the three months ended March 31,				For the nine months ended March 31,
	2026		2025		2026		2025
	(in millions)
Remeasurement of equity securities	$	(21)	$	(12)	$	(34)	$	16



Gain on sale of investment in PropertyGuru	—		—		—		87
Other	3		(1)		7		(2)
Total Other, net	$	(18)	$	(13)	$	(27)	$	101

Supplemental Cash Flow Information

The following table sets forth the Company’s cash paid for interest and taxes:


	For the nine months ended March 31,
	2026		2025
	(in millions)
Cash paid for interest	$	72	$	59
Cash paid for taxes	$	187	$	150

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