Good day, everyone, and welcome to the 2026 News Corporation Annual Meeting of Stockholders. Now, I'll turn the call over to your host, Head of Investor Relations, Michael Florin.
Thank you, operator. The following presentation may include certain forward-looking information. Actual results could differ materially from what is said due to risks and uncertainties. For more details, please refer to News Corp's SEC filings, which identify risks and uncertainties that could cause actual results to differ and which contain certain cautionary statements about forward-looking information. I will now introduce Mr. Lachlan Murdoch, Chair of News Corp.
Good morning. It's my pleasure to welcome you all to News Corp's 2026 annual meeting of stockholders. Fiscal 2026 marked another record year for the company, a testament to our essential journalism, expert analysis, and high-quality data and information, which are irreplaceable commodities in the AI age. By expanding our digital expertise and developing our growth engines, Dow Jones, Digital Real Estate Services, and Book Publishing, News Corp further proved that it is a crucial part of the new AI information ecosystem. We are at an important intersection of extraordinary opportunity and responsibility. While we are proud to partner with principled companies that respect the value of our content, we remain equally dedicated to protecting the intellectual property that distinguishes our brands as trusted sources for audiences and customers around the world.
Our financial success in fiscal 2026 would not be possible without the enduring support of our shareholders and the consistent contributions of our employees. As the fortunes of many companies fluctuate in this environment, the creativity and curiosity that have always been foundational to News Corp only increase in value, and we have an imperative to ensure they prosper far into the future. We are dedicated to delivering value for our investors, and we will always be committed to fostering an open contest of ideas and championing the pursuit of truth. I want to thank our Chairman Emeritus, Rupert Murdoch, for his enduring example of leading with curiosity and integrity, as well as our Chief Executive, Robert Thomson, for his leadership of the company. As always, I am grateful to our employees for their hard work and to our shareholders for their lasting support.
Now, I will turn it over to Robert for some further remarks on this year's outstanding performance. Thank you, Robert.
Thank you, Lachlan. To echo our Chair, fiscal 2026 was a record-breaking year for News Corp as we delivered record revenue and profitability on a continuing operations basis. Revenues rose 7% to $9 billion, total segment EBITDA increased 15% to over $1.6 billion, and free cash flow increased significantly, rising 42% to $811 million. Our net income from continuing operations rose 15% to $743 million, and our enhanced cash position enabled us to aggressively return capital to shareholders, with the buyback accelerating to well over four times the prior year's rate at $643 million. Our sterling performance in fiscal 2026 was a product of sustained development of our core growth engines, Dow Jones, Digital Real Estate Services, and Book Publishing. That positive trajectory and the record profits reflected our clear digital strategy and our focus on recurring revenues.
Fiscal 2026 was marked by a confluence of technological, economic, and political turbulence. Much of the world is being reshaped by artificial intelligence, but it is only as useful as the integrity of its inputs. News Corp plays a crucial role in the emerging information ecosystem. Without our journalists, our authors, our data, our brands, and our professional expertise, users would be drowning in a slimy sea of AI slop. That is why we cultivate partnerships with principled companies who respect the importance of provenance. However, under our woo and sue approach, we are also taking aggressive action against those who pilfer and profit from stealing our content at scale. Turning now to our segments, Dow Jones delivered impressive results with revenues rising 7% to nearly $2.5 billion and segment EBITDA growing 13% to $663 million.
At investor briefing in March, the team outlined a path to $1 billion in segment EBITDA, and we are well on the way to reaching that milestone. Dow Jones B2B continued to flourish, led by strength in risk and compliance, and Dow Jones Energy, which benefited from expanded product portfolios and promise significant growth ahead in their respective markets. Enterprise subscriptions continue to expand, and the Dow Jones News business finished the year with over 6.7 million total subscriptions, a 7% increase, while circulation revenues improved, direct digital subscription ARPU accelerated, and digital advertising was buoyant in the fourth quarter. In Digital Real Estate Services, both realtor.com and REA Group were resilient despite challenges in the U.S. and Australian housing markets. Together, they posted an emphatic performance for the year, with revenues rising 12% to $2 billion, while segment EBITDA burgeoned 23% to $741 million.
Realtor.com closed fiscal 2026 with three straight quarters of double-digit growth and seven consecutive quarters of year-on-year expansion, even though U.S. mortgage rates remained elevated throughout the year. The focus on high-quality leads, AI product innovation, and assiduous assistance for buyers, sellers, and realtors has transformed the business's fortunes. The team also continues to provide reliable real estate news and analysis, which has made realtor.com the largest site in America for residential property news. In Australia, REA Group saw revenues increase 12% to AUD 1.4 billion following the sale of REA India and the planned 35% investment in Distilled. The team remains focused on realizing the company's potential and driving growth in lucrative adjacencies, including mortgage broking and enhancing services for buyers, sellers, and agents. In Book Publishing, annual revenues reached $2.3 billion, exceeding the prior year by 6%.
While full-year segment EBITDA reflected two isolated write-offs, the fourth quarter finished with healthy year-on-year growth. We saw success across our list from Rachel Reid's "Game Changers" series and Senator John Kennedy's "How to Test Negative for Stupid," and Ann Patchett's "Whistler." Digital demand across audiobooks and ebooks was robust, and the Christian publishing business delivered sterling results. Finally, in News Media, revenues gained 3% to reach $2.2 billion, thanks to favorable forex fluctuations and higher circulation subscription revenues. News UK benefited from the World Cup, driving a 40% increase in streaming hours across news broadcasting to over 9 million hours for the fourth quarter. In a new era of rapid evolution across the media landscape, the reach of our mastheads remained significant in fiscal 2026.
We invested in new projects to strengthen that contemporary reach, including the successful launch of the California Post, while in Australia, the News24 brand has officially replaced Sky News. It was certainly a challenging year for many media companies, but News Corporation reported record revenues, record margins, and record profits on a continuing operations basis. We cherish our principles and traditions, but as is characteristic of our founding family, we will never be complacent, and we approach each day with energy and curiosity. Our success is a testament to the astute leadership of our Chair, Lachlan Murdoch, and our Board of Directors, and the enduring resonance of our Chairman Emeritus, Rupert Murdoch. Our thanks also goes to our teams around the world and to the shareholders who have been supportive on this auspicious journey. I will now turn the meeting back over to the Chair. Thank you.
Thank you, Robert. I now call the meeting to order. We are joined today by the rest of the Board of Directors, President José María Aznar, Natalie Bancroft, Ana Paula Pessoa, and Mas Siddiqui. Also joining us are Chief Financial Officer Lavanya Chandrashekar, General Counsel David Pitofsky, Corporate Secretary Michael Bunder, Head of Investor Relations Michael Florin, and Mike Policicchio and Lauren Koslow of EY, the company's independent registered public accounting firm. This meeting is held pursuant to a notice of annual meeting of stockholders made available or mailed on or about September 23rd, 2026, each record holder of the company's stock as of September 10th, 2026. The agenda and rules and procedures for conduct are accessible on the meeting portal and outline how we will proceed with today's meeting.
As stated in the rules and procedures, if you would like to submit a question, you may do so by following the instructions on the meeting portal. In accordance with the company's bylaws, Mr. James J. Raitt from American Election Services, LLC has been appointed as the independent Inspector of Elections for this meeting. The Inspector of Elections has examined the proxies received and reports that holders of a majority in voting power of all of the outstanding shares of stock entitled to vote at the meeting are present in person or represented by proxy. Therefore, I hereby declare a quorum present at the meeting. We opened the polls through the meeting portal at 10:00 A.M. Eastern Standard Time. Only Class B Common Stockholders of record as of the record date or their valid proxy holders are eligible to vote during this meeting.
If you voted or returned a proxy card before the meeting, it is not necessary to vote again. If you wish to cast your vote now or wish to change or revoke a previous vote, you may do so by clicking the voting button on the meeting portal. Please note that we do not authorize any audio or video recording of this meeting. We have four items on today's agenda. Proposal one is for the election of six directors. The board has nominated the following individuals to serve as directors: myself, Lachlan Murdoch, Robert Thomson, President Aznar, Natalie Bancroft, Ana Paula Pessoa, and Mas Siddiqui. If elected, each of these director nominees will serve a one-year term expiring at the 2027 annual meeting or until his or her successor is duly elected and qualified.
Proposal two is for the ratification of the selection of EY LLP as the company's independent registered public accounting firm for the fiscal year ending June 30, 2027. Proposal three is an advisory vote to approve executive compensation, and proposal four is also an advisory vote on the frequency of future advisory votes to approve executive compensation. At this time, the window to submit questions on the proposals has closed, and we will address questions from common stock and CDI holders or their proxy holders or qualified representatives on the foregoing proposals only. A general Q&A session will follow later in the meeting. I will ask our Head of Investor Relations, Mike Florin, to state any questions received on the proposals.
Thank you, Mr. Chair. There are no questions on the proposals.
Thank you, Mike. We will now pause to permit any stockholders who wish to cast their votes to do so. As a reminder, if you have properly submitted your proxy card or voted by telephone or internet prior to this meeting, your vote has been received by the Inspector of Elections, and no further action is needed at this time. It is now 10:14 A.M. Eastern Standard Time on November 5th, 2026. The polls are now closed. A preliminary report reflects that each of the six director nominees was elected, proposals two and three have been approved by the requisite vote, and the preference of stockholders with respect to proposal four is one year. The final vote totals will not be known until the Inspector of Election certifies the tabulation after the meeting.
Those final results will be reported by the company in a current report on Form 8-K, filed with the Securities and Exchange Commission. On behalf of the company and the Board of Directors, thank you for your continued support. The formal portion of this meeting is now adjourned. We will now address questions relating to the business and operations of the company in accordance with the rules and procedures of conduct, which are available on the meeting portal. Common stock and CDI holders, or their proxy holders or qualified representatives, were invited to submit questions in advance of this meeting and may also submit questions during this meeting through the meeting portal. Questions submitted in accordance with the rules and procedures for conduct will generally be addressed in the order received.
Answers to any questions submitted in accordance with our rules and procedures for conduct that we are not able to address during the annual meeting will be published following the meeting in the investor relations section of the company's website at www.newscorp.com. We will attempt to group substantially similar questions together and answer them at one time. Mr. Florin, would you please state the first question?
Thank you, Mr. Chair. Our first question: Could you provide insight into how the News Corp board looks at capital allocation and specific criteria used to evaluate future dividend increases?
Thank you very much, Mr. Florin. That is a great question. The Board diligently assesses how capital allocation is set throughout the year and at each of our board meetings. I think historically, we have been good stewards of capital and focused on areas of growth, acquired smartly, and returning capital to shareholders. We consistently review the balance between reinvestment and return of capital, with a focus on maximizing shareholder value. I think it is correct to say in fiscal 2026, we repurchased $643 million of our stock. Lavanya, if you would like to add anything to that.
Thank you, Lachlan. As the Chair said, we repurchased $643 million of shares in the prior fiscal year, and this benefited from the return of the Foxtel shareholder loans. We continue to remain focused on maximizing total shareholder return, and we do believe that our shares trade at a discount to NAV. We also are focused on maintaining flexibility to invest in potential acquisition opportunities. We have a great balance sheet, and we continue to be confident in being able to generate strong free cash flow.
Thank you, Lavanya.
At this time, there are no further questions. The Q&A portion of the meeting is now concluded. Thank you all very much for attending our annual meeting, and have a great day.
Thank you, everyone.
That concludes our meeting today. You may now disconnect.