A month has gone by since the last earnings report for New York Times Co. (NYT). Shares have added about 3.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is New York Times due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.
The New York Times Q2 Earnings Beat Estimates as Digital Ads Rise
The New York Times Company reported second-quarter 2026 adjusted earnings of 69 cents a share, which surpassed the Zacks Consensus Estimate of 67 cents by 2.99%. The bottom line increased 19% from the year-ago quarter's adjusted earnings of 58 cents per share. Quarterly revenues rose 11.2% year over year to $762.5 million and exceeded the Zacks Consensus Estimate of $748 million by 1.94%.
The strong quarterly performance reflected continued momentum in the company's subscription-first strategy, supported by healthy digital subscriber growth, higher digital-only average revenue per user (ARPU), robust digital advertising demand and continued expansion across its diversified digital products.
NYT's Subscription Business Remains Strong
Total subscription revenues increased 11.7% year over year to $537.9 million in the reported quarter. Subscription revenues from digital-only products rose 16.4% to $407.9 million, benefiting from growth in digital-only subscribers and higher ARPU. Print subscription revenues declined 0.8% to $130 million due to lower single-copy and domestic home-delivery revenues.
The company ended the quarter with approximately 13.35 million total subscribers, including 12.80 million digital-only subscribers. Digital-only subscribers increased by approximately 1.5 million from the prior-year quarter. During the second quarter, NYT added approximately 280,000 net digital-only subscribers, which moderated from 310,000 in the first quarter of 2026.
Digital-only ARPU jumped 3.1% year over year to $9.94, primarily driven by subscribers transitioning from promotional pricing to higher-priced plans and price increases for certain tenured subscribers.
Management expects third-quarter 2026 digital-only subscription revenues to increase 12-15% year over year, while total subscription revenues are projected to grow 9-11%.
NYT's Digital Advertising Continues to Drive Growth
Total advertising revenues increased 11.3% year over year to $149.1 million. Digital advertising revenues jumped 20.7% to $114 million, benefiting from strong marketer demand and continued growth in advertising supply. Print advertising revenues declined 11.1% year over year to $35.2 million.
Affiliate, licensing and other revenues improved 7.1% year over year to $75.5 million, primarily driven by higher Wirecutter affiliate referral revenues, which benefited from a shift in the timing of a marketing promotion by one of the company's partners.
For the third quarter, NYT expects digital advertising revenues to increase at a mid-to-high-teens rate, while total advertising revenues are projected to grow at a high-single- to low-double-digit pace. Affiliate, licensing and other revenues are expected to rise at a low-to-mid-single-digit rate.
NYT's Operating Margin Improves
Adjusted operating costs increased 10% year over year to $607.2 million, mainly due to higher compensation and benefits expenses related to journalism, as well as increased marketing and promotion costs.
Despite elevated investments, NYT delivered improved profitability. Adjusted operating profit rose 16.1% year over year to $155.3 million, while adjusted operating profit margin expanded 90 basis points to 20.4%.
Management expects adjusted operating costs to increase 8-9% in the third quarter as it continues investing in journalism, product innovation and audience growth initiatives.
NYT's Financial Position Remains Healthy
The New York Times ended the quarter with cash and marketable securities of $1.22 billion, up from $1.17 billion at the end of 2025. The company remained debt-free, with no borrowings outstanding under its $400 million revolving credit facility.
Net cash provided by operating activities totaled $286.5 million during the first six months of 2026, while free cash flow reached $265.7 million.
During the quarter, NYT repurchased 473,691 Class A shares for approximately $35.4 million. As of July 31, 2026, approximately $239.7 million remained available under the company's share repurchase authorization.
Capital expenditures were approximately $10 million in the quarter. Management reaffirmed expectations for 2026 capital expenditures of approximately $35-$45 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
VGM Scores
Currently, New York Times has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise New York Times has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The New York Times Company (NYT) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
