New York Times’ slower subscriber growth in busy news cycle sparks share selloff
But total advertising revenue beat estimates, rising by 11.3 per cent.
The New York Times experienced a slower-than-expected increase in digital subscribers during the second quarter of 2026, adding approximately 280,000 new digital-only subscribers, falling short of estimates of 295,300 and lower than the 310,000 gained in the previous quarter. This slower growth coincided with a busy news cycle, including the US-Israeli war with Iran and the FIFA World Cup, which raised concerns among investors and led to a share price drop of over 13%. The newspaper's total subscriber count now stands at 13.35 million.
The decline in subscriber growth can be attributed to a decrease in search and referral traffic from Google, affecting even The New York Times, a company renowned for its success in building a vast subscription business around news and lifestyle content. In response to the challenging environment, CEO Meredith Kopit Levien of The New York Times Company attributed the impact of big tech companies' moves on the company, stating that the Times remains susceptible to these changes.
The company aims to reach 15 million subscribers by the end of 2027, requiring an average of 275,000 subscribers added per quarter over the next six quarters. Even after dropping its paywall for all FIFA World Cup coverage on The Athletic and introducing new coverage formats, The Times managed to draw its "biggest audiences ever." However, digital-only subscription revenue is expected to slow to between 12% and 15% in the third quarter, with the midpoint falling below the estimated 14.2%.
Looking ahead, Kopit Levien expressed optimism about the success of the company's sports coverage in powering growth during the American National Football League season and the potential of video content as a long-term opportunity, despite its minor role in ad growth so far. Total advertising revenue rose by 11.3% to US$149.1 million, surpassing the estimated US$146.4 million.
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