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Research Alert: Nwsa: Dow Jones And Digital Real Estate Services Drive Mar-q Beat

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-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

News Corp delivered a FQ3 2026 beat with revenue of $2.19B (+9% Y/Y vs. $2.11B consensus) and EBITDA of $343M (+18% Y/Y vs. $330M consensus). Adjusted EPS of $0.21 beat the $0.20 consensus estimate, compared to $0.17 in the prior year. The results reinforce the bull case on News Corp's transformation toward higher-margin, recurring digital revenue streams, driven by Dow Jones and Digital Real Estate Services strength. Management reiterated a pathway to $1B in annual Dow Jones EBITDA within five years, implying a mid-teens CAGR from $640M run rate. We view the quarter as supporting our thesis that Dow Jones and Digital Real Estate can sustain mid-teens EBITDA growth, which should underpin current valuation. The company continues executing accelerated buybacks and management guides to strong FCF growth for the full year, while AI content licensing deals with Meta and OpenAI remain unquantified. However, we believe News Media deterioration and AI monetization uncertainty warrant monitoring.

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