News (NASDAQ:NWS) reported record fiscal 2026 revenue and profitability from continuing operations, as growth across its major businesses helped drive a 42% increase in free cash flow, executives said at the company’s annual shareholder meeting.
Revenue rose 7% to $9 billion, while total segment EBITDA increased 15% to more than $1.6 billion, Chief Executive Robert Thomson said. Net income from continuing operations climbed 15% to $743 million, and free cash flow reached $811 million.
The company repurchased $643 million of shares during the fiscal year, more than four times the prior year’s rate, Thomson said. Chief Financial Officer Lavanya Chandrashekar said the repurchases benefited from the return of Foxtel shareholder loans.
Growth across key businesses
Thomson attributed the company’s performance to its digital strategy, focus on recurring revenue and development of three growth engines: Dow Jones, Digital Real Estate Services and Book Publishing.
Dow Jones revenue increased 7% to nearly $2.5 billion, while segment EBITDA rose 13% to $663 million. Thomson said the business had outlined a path to $1 billion in segment EBITDA at a March investor briefing. Its news business ended the year with more than 6.7 million total subscriptions, up 7%.
Digital Real Estate Services revenue grew 12% to $2 billion and segment EBITDA increased 23% to $741 million. Thomson said realtor.com ended the fiscal year with three consecutive quarters of double-digit growth and seven consecutive quarters of year-over-year expansion, despite elevated U.S. mortgage rates.
In Australia, REA Group revenue rose 12% to AUD 1.4 billion. Thomson also noted the sale of REA India and a planned 35% investment in Distilled.
Book Publishing revenue increased 6% to $2.3 billion. Thomson said full-year segment EBITDA reflected two isolated write-offs, although the business recorded year-over-year growth in the fourth quarter. News Media revenue rose 3% to $2.2 billion, aided by favorable foreign exchange movements and higher circulation and subscription revenue.
AI strategy and capital allocation
Chair Lachlan Murdoch said News Corp views its journalism, data and other content as important to the artificial intelligence ecosystem. He said the company intends to partner with businesses that respect its content while protecting its intellectual property.
Thomson described the company’s approach as “woo and sue,” saying News Corp cultivates partnerships with companies that respect content provenance while taking action against those it believes steal its content at scale.
Asked about capital allocation and criteria for future dividend increases, Murdoch said the board regularly reviews the balance between reinvestment and returning capital to shareholders. Chandrashekar said the company believes its shares trade at a discount to net asset value and wants to maintain flexibility for potential acquisitions. Neither executive announced a dividend increase.
Preliminary shareholder votes
Murdoch said preliminary results showed that shareholders elected all six director nominees, ratified EY as the company’s independent auditor for fiscal 2027 and approved executive compensation in an advisory vote. Shareholders expressed a preference for holding future advisory compensation votes annually.
The final vote totals will be reported in a filing with the Securities and Exchange Commission after the inspector of elections certifies the tabulation, Murdoch said.
About News (NASDAQ:NWS)
News Corporation (NASDAQ: NWS) is a global media and information services company with businesses spanning news, publishing, digital real estate services and subscription-based content. The company operates through a portfolio of brands that serve consumers, professionals and businesses across multiple markets.
Its major operations include Dow Jones, which provides business news, financial information and data through publications such as The Wall Street Journal and Barron’s; News Corp Australia and News UK, which publish newspapers and digital news platforms; and HarperCollins Publishers, a global book publishing company.
