Before the market open, the McLean, VA-based media company and owner of USA Today posted earnings of 30 cents per share, slightly below analysts' estimates of 31 cents per share.
Revenue increased by 3% year-over-year to $748.8 million, compared to analysts' expectations of $768.47 million.
Gannett's digital-only subscriptions grew 40% this quarter and its national digital advertising revenue grew 22.4%.
"By the end of the third quarter, we expect that annualized revenues acquired in the last twelve months will be more than $800 million, and the annualized digital component of our revenues will approach $1 billion," Gannett CEO Robert J. Dickey said in a statement.
The company expects year-over-year revenue growth between 7% and 9% for the second half of 2016.
Gannett shares have declined 12% since the beginning of the year, while the Standard & Poor's 500 index has climbed 6%.