New York Times surges on earnings beat, dividend hike
Digital subscribers hit 12.8 million as company raises quarterly payout 28% and delivers strong Q4 results
The New York Times Company delivered a commanding fourth-quarter performance, reporting earnings per share of $0.89 that crushed analyst estimates by 67%, while revenue of $802.3 million exceeded expectations by 15.9%. The company's digital transformation continued to accelerate, with total digital subscribers reaching 12.78 million after adding 450,000 net additions during the quarter.
The strong results, announced Wednesday morning, came alongside a significant shareholder return initiative. The board raised the quarterly dividend by 27.8% to $0.23 per share, up from $0.18 previously, marking the latest sign of confidence in the company's cash-generating capabilities as its digital strategy matures.
Digital advertising revenue surged 24.9% year-over-year, outpacing the broader market recovery and underscoring the value of the company's premium audience to advertisers. The advertising market is forecast to grow approximately 6% in 2025 and 2026, with digital formats leading the charge—a trend that should continue benefiting the publisher.
"The company's subscriber-centric strategy, diversified digital products, and consistent subscription growth have garnered analyst praise," according to market analysis. Digital-only subscription revenue previously exceeded $1 billion for the first time in the fourth quarter of 2023, establishing a foundation that the company has continued to build upon through product innovations including a new family subscription plan introduced in the third quarter of 2025.
Looking ahead, management provided guidance for the first quarter of 2026, projecting digital-only subscription growth of 14-17% and digital advertising revenue increasing in the high-teens to low-twenties range. The outlook suggests continued momentum despite a more challenging economic environment for many media companies.
The company now commands a market capitalization of approximately $12 billion, with shares trading at a price-to-earnings ratio of 36.1. Analysts have a consensus target price of $68.75, according to current market data, with the stock having traded in a 52-week range between $44.43 and $74.02.
The quarterly earnings conference call was held at 8:00 a.m. Eastern Time on February 4, 2026, with executives discussing the results and strategic priorities. Institutional investors hold 99.4% of outstanding shares, reflecting heavy institutional ownership that is typical for established media companies transitioning to digital-first models.
Wednesday's results represent the latest milestone in The New York Times' multi-year digital transformation, which has seen the company successfully pivot from print-dependent revenue to a diversified model centered on digital subscriptions, advertising, and ancillary products. The addition of 450,000 digital subscribers in the fourth quarter brings total digital subscriptions to 12.78 million, solidifying the company's position as one of the largest digital news publishers globally.