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SEC filingRevenue grew 8.8% to $2.2B driven by circulation and subscription gains from foreign currency fluctuations, price increases, and digital subscriber growth, though net income declined 13.6% to $89M amid profitability pressures.
Net income decreased 13.6% to $89 million from $103 million, with diluted EPS falling 11.1% to $0.16 from $0.18. While topline momentum provided a solid foundation, profitability faced headwinds that narrowed margins. The decline underscores the challenges of cost dynamics in a transitioning media landscape, where revenue gains have not fully translated to the bottom line.
Capital expenditures increased to $280 million from $250 million, signaling sustained investment in strategic priorities. Management views free cash flow as a key indicator of liquidity and cash trends, and anticipates strong full-year growth despite moderately higher capex. This outlook reflects confidence in the Company's cash generation capabilities to support ongoing operations and potential capital allocation decisions, bolstered by available borrowing capacity under the 2026 Revolving Facility and access to credit markets.
Overall, these dynamics position News Corporation to navigate industry headwinds through digital transformation and professional services expansion, with revenue diversity and cash flow strength supporting long-term value creation for investors.