FOX Q4 Earnings Call Highlights

Key Points

• FOX reported record fiscal 2026 performance, with revenue up 5% to more than $17 billion and EBITDA up 8% to $3.9 billion. Fourth-quarter revenue rose 28% to $4.2 billion, driven largely by FIFA World Cup advertising, while adjusted EPS increased 41% to $1.79.
• Streaming and advertising momentum remained strong: Tubi revenue grew 35% to a record quarter, reaching 110 million monthly active users, while FOX One exceeded subscriber and retention expectations. Management also expects the upcoming midterm election cycle to generate record political advertising revenue.
• FOX repurchased $2 billion of shares and paid $243 million in dividends during fiscal 2026. The company said its planned Roku acquisition remains on track to close in the first half of calendar 2027, pending approvals.

FOX NASDAQ: FOX reported record fiscal 2026 revenue and EBITDA, as the company benefited from FIFA Men’s World Cup advertising, growth at Tubi and FOX One, and continued strength in its news and sports businesses.

For the fiscal year ended 2026, revenue increased 5% to more than $17 billion, while EBITDA rose 8% to a record $3.9 billion, Executive Chair and Chief Executive Officer Lachlan Murdoch said. Advertising revenue increased 7% despite comparisons with the prior year, which included the Super Bowl and a U.S. presidential election cycle. Distribution revenue rose 4% and content and other revenue increased 4%.

Net income attributable to stockholders was $1.7 billion, or $3.84 per share, compared with $2.3 billion, or $4.91 per share, in fiscal 2025. Excluding non-core items, adjusted net income totaled $2.4 billion and adjusted earnings per share rose 13% to $5.42.

Fourth-Quarter Results Driven by World Cup

Fourth-quarter revenue rose 28% to $4.2 billion, while EBITDA increased 27% to $1.2 billion. Advertising revenue climbed 78%, led by the company’s broadcast of the 2026 FIFA Men’s World Cup and accelerating growth at Tubi. Distribution revenue increased 5%.

Chief Financial Officer Steve Tomsic said adjusted net income for the quarter was $765 million, while adjusted EPS rose 41% to $1.79, from $1.27 a year earlier. Reported net income attributable to Fox stockholders was $691 million, or $1.61 per share, versus $717 million, or $1.57 per share, in the prior-year quarter.

Expenses increased 28% during the quarter, reflecting higher sports programming rights, amortization and production costs related to the World Cup, as well as costs associated with the growth of FOX One.

• Cable network programming revenue rose 9%, while segment EBITDA declined 3%.
• Cable advertising revenue increased 22%, driven by the World Cup.
• Cable distribution revenue grew 7%, as affiliate-renewal pricing gains outpaced subscriber declines.
• Television segment revenue rose 45% and EBITDA grew 129%.
• Television advertising revenue increased 108%, supported by the World Cup, political advertising at television stations and Tubi growth.

Tomsic said net subscriber declines across third-party distributors remained consistent with the prior quarter at under 6.5%, before accounting for the positive contribution from FOX One.

Tubi and FOX One Continue to Expand

Tubi delivered its highest quarterly streaming and revenue results, with revenue up 35% and total viewing time up 17%. The service ended the fiscal year with 110 million monthly active users. Murdoch said Tubi’s World Cup hub reached more than 20 million viewers, while simulcasts of two early-round matches generated two of the platform’s highest-traffic days.

Murdoch said World Cup-related Tubi revenue was meaningful but relatively small compared with the platform’s overall revenue growth. He also said approximately 70% of Tubi viewers are cordless households, including cord-cutters and cord-nevers, making the platform valuable to advertisers seeking incremental reach.

FOX One, the company’s direct-to-consumer streaming offering, continued to exceed management’s expectations, according to Murdoch. The World Cup drove incremental subscriber additions and retention rates that surpassed the company’s expectations. He said FOX One has experienced minimal cannibalization of the traditional pay-TV business, with subscribers appearing to be incremental to the existing ecosystem.

Tomsic said digital investments, including Tubi and FOX One, declined to less than $200 million in fiscal 2026 from just under $300 million in fiscal 2025. He said the company expects continued bottom-line improvement from its digital portfolio in fiscal 2027.

Advertising, Political Cycle and Sports Outlook

Management said advertising momentum has continued into the first fiscal quarter. Murdoch said the company completed one of its strongest upfronts, with double-digit volume growth across sports, news and Tubi. He said the company saw strong demand from categories including entertainment, financial services, automotive, pharmaceuticals, dining, retail, technology and telecommunications.

Fox expects the midterm election cycle to provide a further advertising tailwind, particularly for local stations and Tubi. Murdoch cited estimates from independent political advertising tracking firms projecting more than $11 billion in spending during the upcoming midterm election cycle. Fox generated more than $260 million in political revenue during the previous midterm cycle, and management expects the upcoming cycle to set a company record.

The company will continue to benefit from World Cup-related revenue in the first quarter of fiscal 2027, although Tomsic said total tournament revenue was weighted more heavily toward fiscal 2026. Fiscal 2027 World Cup revenue is expected to be concentrated in the television segment because that segment carried most knockout-stage matches.

Murdoch also said Fox will not amend its existing NFL agreement, which runs through the completion of the 2029 season. The company expects to discuss opt-out seasons and rights beyond that period closer to the 2030 season.

Capital Returns and Roku Transaction

Fox repurchased $2 billion of shares during fiscal 2026 and paid approximately $243 million in dividends. The company increased its semiannual dividend to $0.29 per share. Since its spin, Fox has returned $10.7 billion to shareholders, including $8.6 billion in share repurchases, representing about 36% of shares outstanding since the buyback program began in November 2019.

The company ended the quarter with approximately $4.2 billion in cash and $6.6 billion in debt. Tomsic said Fox expects its share repurchase program to continue through the pending Roku transaction and afterward. Murdoch said the Roku acquisition remains on track to close in the first half of calendar 2027, subject to the approval process.

About FOX (NASDAQ:FOX)

Fox Corporation NASDAQ: FOX is a U.S.-based media company that operates television broadcast, news and sports businesses. The company traces its contemporary structure to the 2019 reorganization that followed the sale of certain entertainment assets to The Walt Disney Company; Fox Corporation retained a portfolio centered on the Fox Broadcasting Company, Fox Television Stations, Fox News Media and Fox Sports. Over time the company has expanded its digital footprint through acquisitions and direct-to-consumer services, building a mix of linear and streaming distribution.

FOX’s core activities include the creation, aggregation and distribution of television programming and live sports, the operation of national cable news and business networks, and the ownership and operation of local broadcast stations.

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