Newspaper and digital media company The New York Times (NYSE:NYT) reported revenue ahead of Wall Street’s expectations in Q2 CY2026, with sales up 11.2% year on year to $762.5 million. Its non-GAAP profit of $0.69 per share was 3.6% above analysts’ consensus estimates.
Is now the time to buy NYT? Find out in our full research report (it’s free for active Edge members).
The New York Times (NYT) Q2 CY2026 Highlights:
- Revenue: $762.5 million vs analyst estimates of $752.3 million (11.2% year-on-year growth, 1.4% beat)
- Adjusted EPS: $0.69 vs analyst estimates of $0.67 (3.6% beat)
- Operating Margin: 15.5%, in line with the same quarter last year
- Subscribers: up 1.5 million year on year
- Market Capitalization: $10.6 billion
StockStory’s Take
The New York Times reported double-digit revenue growth in Q2, outpacing Wall Street’s expectations, yet the market’s negative reaction reflected investor concerns over rising costs and margin pressures. Management attributed performance to strong digital subscription gains, robust advertising demand, and expansion of video content. CEO Meredith Kopit Levien emphasized that “substantial progress against all of our priorities” was achieved, with digital-only subscription revenues and advertising both exceeding internal targets. However, CFO William Bardeen acknowledged that cost growth, particularly in sales, marketing, and compensation related to outperformance, was higher than anticipated.
Looking forward, The New York Times expects continued growth from digital subscriptions and advertising, with a particular focus on expanding video content as a core strategic priority. Management highlighted plans to grow the amount and impact of video journalism, aiming to make the Times “as preferred a brand for watching the news as it is for reading and listening.” Bardeen noted ongoing investments in technology and product development but cautioned that cost discipline will remain important as the company navigates a changing digital media landscape shaped by shifting platform relationships and evolving consumer habits.
Key Insights from Management’s Remarks
Management cited digital subscriber growth, enhanced video offerings, and strong advertising demand as primary drivers behind the quarter’s results, while increased costs—especially in marketing and compensation—drew scrutiny from investors.
- Subscriber base momentum: The company added 280,000 net new digital subscribers in the quarter, bringing the total to 13.4 million. Management credited product upgrades, new features in the flagship news app, and continued engagement from games and cooking verticals for driving subscription growth.
- Video expansion strategy: The Times accelerated production of original video content, including thousands of new videos and the launch of a shows tab in its app. Management views video as a key avenue to reach new audiences and deepen engagement, describing it as a “generational opportunity.”
- Advertising outperformance: Digital advertising revenues grew 21% year-over-year, exceeding expectations due to strong engagement across news, sports, and games. CEO Levien said that differentiated content and effective ad products contributed to broad-based demand from marketers.
- Cost and compensation headwinds: CFO Bardeen pointed to higher compensation and benefits, linked to both investments in video and variable compensation tied to above-plan financial results, as the main reason for cost growth exceeding guidance.
- Mitigating platform risk: Management addressed the challenge of reduced traffic from large tech platforms. Levien outlined a renewed focus on direct relationships through destination product experiences and investments in unique, high-quality journalism to build resilience against shifting platform dynamics.
Drivers of Future Performance
Management’s outlook is driven by digital subscription and advertising growth, while ongoing investment in video and technology is expected to support engagement amid platform and cost headwinds.
- Video as growth lever: Management believes video will become a primary channel to attract and engage both existing and new audiences, with CEO Levien outlining ambitions for the Times to be a leading news brand across video formats. These investments are expected to open new monetization avenues, though video currently represents a minor share of advertising revenue.
- Subscription pricing and product mix: Growth in digital subscription revenues is expected to be fueled by a combination of subscriber gains, successful transitions to higher-priced bundles, and disciplined pricing strategies. CFO Bardeen noted that subscriber mix and step-up performance, such as moving users from promotional to standard rates, will be central to sustaining revenue momentum.
- Platform dependency and cost discipline: Management acknowledged risks from reduced traffic referrals as tech platforms change their algorithms and relationships with publishers. To mitigate this, the Times is investing in its own platforms and apps. At the same time, cost management—including careful allocation of marketing and compensation spend—remains a focus to protect margins as investment needs grow.
Catalysts in Upcoming Quarters
In the coming quarters, our team will track (1) progress in scaling and monetizing video content across the Times’ digital platforms, (2) the company’s ability to grow digital subscriptions while managing subscriber mix and pricing transitions, and (3) how effectively cost management initiatives offset increased spending on content and marketing. Shifts in referral traffic from major tech platforms will also be closely watched as a key risk factor.
The New York Times currently trades at $65.03, down from $75.61 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).
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