News Corporation

The forensic picture in the data is mixed rather than alarming. The Beneish M-Score for fiscal 2025 is -2.310, below the -1.78 threshold, which places it outside the elevated manipulation-risk zone; this is a screening result, not a finding that the reported numbers are accurate. The Piotroski F-Score is 6 of 8 computable signals, a measure of financial strength across profitability, leverage and efficiency tests. The Fog Index of 22.01 falls in the very hard to read band, so the MD&A requires dense reading to reach the segment figures. Operating cash flow was 0.83 times net income in fiscal 2025, meaning cash generation trailed reported earnings. Segment results for fiscal 2025 show Dow Jones with revenues of $2.33 billion and segment EBITDA of $588 million, Digital Real Estate Services with $1.80 billion and $601 million, Book Publishing with $2.15 billion and $296 million, and News Media with $2.17 billion and $153 million, while Other recorded negative $223 million. Digital Real Estate Services had the highest segment EBITDA, slightly above Dow Jones. The filing also flags the Iran conflict's effect on fuel prices and consumer spending, and it references U.K. Newspaper Matters described in Note 10, which the excerpt does not detail. Readers may want to look at the Note 10 disclosures and the discontinued operations note before drawing conclusions about the fiscal 2025 earnings rebound.

Catalyst.According to the 10-Q for the period ended March 31, 2026, nine-month revenues rose $348 million, or 5%, to $6.69 billion, led by Digital Real Estate Services (REA Group and Move) and Dow Jones circulation and subscription revenue. Third-quarter revenue rose 9% to $2.19 billion. Nine-month net income attributable to News Corporation stockholders was $394 million, down 10% from $437 million, and the filing cites higher Book Publishing costs and a $16 million one-time write-off. On March 27, 2026, the company extended its credit facilities to five years, raised the revolver from $750 million to $1 billion, and increased term loan A from $456 million to $500 million.

Hidden risk.Fiscal 2025 net income of $1.18 billion is more than four times the $266 million reported for fiscal 2024, yet operating cash flow fell to $978 million from $1.1 billion, so operating cash flow covered only 0.83 times net income. The 10-K excerpt shows Foxtel as discontinued operations, and the excerpt does not break out what drove the jump in net income, so readers may want to check the discontinued operations note before treating that figure as recurring. The MD&A also has a Fog Index of 22.01, which is very hard to read, making the key detail harder to find.