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Special Report
How Berkshire’s New York Times Bet Looks TodaySubmitted by Leo Miller. First Published: 5/14/2026. 
Key Points
- New York Times is the latest addition to the Berkshire portfolio, showing up at the end of 2025.
- New York Times navigated the transition from print to digital media well, now having over 10 million digital subscribers.
- While there are many strong aspects to the New York Times' business, concerning signs exist as well.
- Special Report: Elon Musk already made me a “wealthy man”
At the end of 2025, Berkshire Hathaway (NYSE: BRK.B), formerly led by the legendary Warren Buffett, made an interesting portfolio move. The company’s 13F filing revealed that it initiated a new position during the quarter, making a $352 million bet. That stock was The New York Times (NYSE: NYT), a name many likely did not expect. Given that one of the world’s most renowned investment funds has taken a stake in the company, The New York Times is a stock worth examining. Overall, NYT has a lot going for it today, but it also carries notable risks worth considering. Understanding The New York Times’ Digital Transformation
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The New York Times' business needs little introduction; it is one of the longest-standing and most widely recognized news organizations in the world. Still, it is worth understanding how the company has shifted its business in recent years. It is no secret that the traditional print newspaper industry is in structural decline. Notably, from 2021 to 2025, NYT’s print subscribers fell from 795,000 to 570,000. However, the company has been fairly successful in transitioning away from print and toward digital over the past several years. While print subscribers dropped 28% from 2021 to 2025, digital-only subscribers increased by 80% from 6.783 million to 12.21 million. Today, digital channels are the dominant force behind NYT’s revenue. Digital subscriptions and digital advertising made up approximately two-thirds of the company’s total revenue over the last 12 months (LTM). Revenue from these streams was approximately $1.92 billion, compared with total revenue of nearly $2.9 billion. While declining, print still represents a significant source of sales. LTM print subscription and print advertising revenue were around $677 million, equal to 23% of total sales. Other Services revenue accounted for just under 11% of LTM total sales. In this segment, the company licenses its intellectual property, engages in affiliate marketing, and uses excess printing capacity to support third-party distribution needs. Digital and Other Services have been notable growth drivers, offsetting the decline in print. Total Digital revenue rose 70% from 2021 to 2025, and Other Services revenue rose around 43%. This helped total revenue increase 36%. Since the end of 2021, NYT shares are up approximately 70%, modestly ahead of the S&P 500’s 64% return over the same period. Overall, these metrics show that NYT is far from a dead company, but rather one that is evolving with a changing world. The New York Times Wins in Q1NYT’s latest earnings report was strong. Quarterly sales increased by 12% year over year (YOY) to $712.2 million, solidly ahead of estimates near $700 million. Notably, adjusted earnings per share (EPS) increased much faster, rising 49% YOY to 61 cents. That was well ahead of estimates of 49 cents, demonstrating significant operating leverage in the business. NYT’s adjusted operating profit (AOP) margin moved up considerably, rising 200 basis points YOY to 16.6%. The firm also reduced its diluted share count by around 0.7% YOY and has $291.2 million of buyback capacity remaining. NYT’s Q2 guidance points to continued growth and margin expansion ahead on a YOY basis. It expects total subscription revenue to rise 9% to 11%, and total advertising revenue to rise by “low double digits.” Meanwhile, NYT projects that adjusted operating costs will increase by just 8% to 9%. The company noted, “We continue to expect 2026 to be another year of healthy growth in revenues and AOP, margin expansion, and strong free cash flow generation." The stock saw a meaningful 8% boost after its earnings report. Importantly, the firm’s growth is accelerating rather than tapering off. Its 12% growth last quarter was the highest since Q4 2022, and a big improvement from 7% growth in Q1 2025. Additionally, LTM free cash flow increased by a very healthy 28% YOY to $542 million. News Takes a Backseat: A Concerning IndicatorIn general, the metrics outlined above paint an encouraging picture for NYT. However, there is one key blemish on the firm’s recent history. While NYT is best known for news journalism, that is not where the company is growing. At the end of 2025, NYT’s news-only subscribers were just 1.47 million, down 24% YOY. Instead, bundled and other single-product subscriptions are driving growth. Other single products include The Athletic, Audio, Cooking, Games, and Wirecutter. In this category, subscribers rose 24% YOY to 4.27 million. Bundled plans contain subscriptions to two or more products and may or may not include a news subscription. Bundled subscriptions rose 19% YOY. Thus, interest in what many would consider NYT’s biggest strength — news — appears to be declining, while other products are winning customers. One reason for this may be the emergence of artificial intelligence (AI). Rather than searching for news on Google and then finding NYT, products like AI Overviews can give people information without requiring them to read an entire article. It is worth questioning whether AI advancements could erode the company’s other product lines over time. New York Times: Berkshire Plants Its Flag in the GroundThere are many strong metrics supporting NYT’s business, which Berkshire likely identified. However, declining interest in news coverage is a crack below the surface. In this context, there is significant uncertainty about the stock’s outlook. Taking a bullish stance requires conviction that interest in its non-news products will remain strong over the long term, or that news interest will make a comeback. Berkshire’s investment indicates a belief that one or both of these outcomes will play out. Uncertainty is reflected in the wide range of analyst price targets for NYT. Targets updated after the company’s latest report range as high as $95 and as low as $66. The average of updated targets was around $83, modestly above the MarketBeat consensus target near $81. This updated average implies upside of less than 10%. |
