News falls 1.4% as judge dismisses Trump lawsuit over Wall Street Journal story

What happened

News (NWS) fell 1.4% to close at $31.74 on October 30, 2026, in an ordinary session for the stock, while the S&P 500 fell 1.8% that day. Trading volume was 1.4 times its 20-day average. Separately, Skynews reported that a U.S. judge dismissed former President Donald Trump's lawsuit against The Wall Street Journal concerning a story about a birthday card he allegedly sent to Jeffrey Epstein; the report was a notable development around the company.

How big was the move

The price change was 0.9 times a typical daily move for this stock, a size that classifies the session as an ordinary session. The session's performance was 0.7 percentage points worse than the Communication Services sector median, which fell 0.7% on the day. Over the last five sessions the stock fell 6.0%, compared with the S&P 500's five-session change of fell 0.6%.

The stock's market sensitivity is captured by a beta of 0.76, indicating the stock tends to move less than the market. The stock opened 1.2% above the previous close on October 30, 2026, and finished the day lower as broader market weakness pushed the S&P 500 down.

The technical picture

The stock was 2.6% below its 20-day moving average and 3.9% below its 50-day moving average, while it stood 4.3% above its 200-day moving average. The 50-day average is above the 200-day average, a sign of an established uptrend, and the stock has spent 85 consecutive trading days above the 200-day average.

Momentum indicators were muted. The Relative Strength Index (14 days) was 41, in a neutral range between 30 and 70. The distance from the 52-week high was 11.2% below that high. Over one month the stock rose 0.9%, over three months it fell 0.2%, and over one year it rose 4.9%, which is 5.1 percentage points behind the S&P 500 for the same period.

Volatility was 23% annualized over 60 days, lower than 67% of its own readings over five years, a signal that recent price swings have been relatively subdued compared with the stock's history.

Fundamentals and valuation

For the four quarters through June 30, 2026, News reported revenue of $9.03 billion, which grew 6.8% from a year earlier, and diluted earnings per share of $1.03, which rose 26.0% versus a year earlier. Gross margin was 56.9% (a year earlier: 56.2%), while operating margin was 11.4% (a year earlier: 16.7%). Free-cash-flow margin was 11.8% and return on invested capital was 5.7%.

The balance sheet shows net debt of 0.5 times EBITDA, and the share count over one year decreased by 1.8%. Valuation metrics include 30.8 times trailing earnings and 24.0 times expected earnings on a forward basis, with a free-cash-flow yield of 5.9%. The price to trailing earnings is lower than 76% of its own readings over the past five years (five-year median: 38.0 times earnings), which suggests the stock is cheaper versus its recent history even as absolute multiples remain elevated.

Earnings and analyst expectations

News last reported on August 5, 2026, with earnings per share of $0.35 against $0.23 expected, a result 50.7% above estimates. The company has beaten estimates for four consecutive quarters, with an average surprise over the last four reports of 33.9% above estimates. Its typical two-day reaction after recent reports was unchanged.

The next report is scheduled for November 5, 2026. Thirty-three analysts provide ratings for the stock; 64% rate the stock Buy or Strong Buy, and the consensus rating is Buy. PromtFinance scores rank the company positively on several dimensions: Growth 71 (Positive), Quality 67 (Positive), Momentum 68 (Positive), with exceptionally high Revisions 92 (Exceptional) and Stability 95 (Exceptional). The Value score is 63 (Neutral).

Taken together, the fundamentals show steady top-line growth and cash generation, while margins and return on capital point to room for operational improvement. The stock's valuation sits below much of its recent five-year range, even as investors weigh whether the company's profit margins can recover toward earlier levels.

What to watch

• November 5, 2026: next quarterly earnings report date
• August 5, 2026: last report showed EPS of $0.35 vs $0.23 expected, 50.7% above estimates
• Four consecutive quarters beating estimates and an average surprise of 33.9% above estimates over the last four reports
• Trading volume on October 30, 2026, was 1.4 times its 20-day average