Profit of Gannett skyrockets in Q2 due to tax advantages, stock prices climb accordingly
Gannett Co., Inc. (GCI) has unveiled its financial outlook for 2026, projecting a marginal decline in total revenues by low to mid-single digits. However, the company anticipates EBITDA growth, driven by cost reduction efforts and improved digital revenue trends.
Despite the revenue headwinds, GCI remains optimistic about its financial future. The company's strategy includes a $100 million cost reduction program, expense controls, digital revenue expansion of 3-5% in the latter half of 2025, and continued investment in digital marketing services and technology-driven solutions.
Management is also focusing on debt reduction and strengthening the balance sheet to support sustainable, long-term growth. GCI expects to exceed its initial projection of repaying over $135 million of debt by the end of 2025, with a planned repayment of $23.4 million in the second quarter.
For the rest of fiscal 2025 and into 2026, Gannett expects improving digital revenue segments, especially in digital advertising, paid digital subscriptions, and its LocaliQ digital marketing solutions. Profitability has improved recently due to targeted expense reductions and a more flexible cost structure, with adjusted EBITDA margin expanding to 11% in Q2 2025 from 8.8% in the prior quarter.
Analysts forecast a 2026 price target around $5.52 per share (range $3.00–$8.00), generally endorsing a “buy” rating based on expected operational improvements and cost efficiencies. However, EPS remains under pressure with modest negative quarterly earnings expected near-term.
In the second quarter, GCI reported a significant increase in quarterly earnings compared to the same period last year, totaling $78.39 million or $0.42 per share. The earnings increase was due to a benefit for income taxes, which was $87.47 million, compared to $26.80 million a year ago. However, same store revenues were down 6.4 percent.
Currently, shares of Gannett Co., Inc. are up 8.07 percent from the previous close, trading at $3.95. Michael Reed, chairman and CEO of GCI, announced plans to implement targeted annualized expense reductions of approximately $100 million, which are expected to create a lower and more variable cost structure, positioning GCI to increase margins.
For comments and feedback, readers are encouraged to contact editorial@our website. Gannett Co., Inc. expects net income attributable to improve from the previous year.
In summary, Gannett’s 2026 financial outlook is characterized by modest revenue declines but anticipated EBITDA growth and improved profitability supported by digital revenue expansion, a major cost reduction program, and balance sheet strengthening to facilitate growth strategies centered on digital transformation and marketing services.
Business and finance are at the forefront of Gannett Co., Inc.'s (GCI) strategic plans for 2026. Despite expecting a marginal decline in total revenues, the company projects EBITDA growth due to cost reduction efforts, improved digital revenue trends, and a $100 million cost reduction program.
