FOX NASDAQ: FOX reported record first-quarter fiscal 2027 revenue and EBITDA, supported by its FIFA Men’s World Cup coverage, political advertising, distribution gains and continued growth at streaming service Tubi.
Revenue rose 22% from the prior-year period to $4.6 billion, while EBITDA increased 54% to $1.64 billion, both first-quarter records, Executive Chair and Chief Executive Officer Lachlan Murdoch said on the company’s earnings call. Advertising revenue climbed 47%, and distribution revenue increased 9%.
Net income attributable to stockholders was $943 million, or $2.20 per share, compared with $599 million, or $1.32 per share, a year earlier. On an adjusted basis, net income totaled $1.09 billion and adjusted earnings per share reached $2.54, up 68% from $1.51 in the prior-year quarter.
World Cup, Sports and Political Advertising Drive Results
Chief Financial Officer Steve Tomsic said advertising growth was led by FOX’s broadcast of the 2026 FIFA Men’s World Cup, higher political advertising revenue and continued Tubi expansion. Total expenses rose 10%, reflecting World Cup-related costs and increased digital-content expenses.
Murdoch said the World Cup Final was the most-watched soccer telecast in U.S. history. FOX also benefited from the start of the NFL and college football seasons and Major League Baseball’s postseason. He said the five-game World Series between the Milwaukee Brewers and Tampa Bay Rays averaged 12 million viewers, while FOX’s “America’s Game of the Week” has averaged nearly 25 million viewers so far this NFL season.
Political advertising across the company’s portfolio has surpassed $350 million, a record for a midterm cycle, according to Murdoch. He said the total includes more than $250 million at local television stations, approximately $50 million of targeted political advertising on Tubi and more than $50 million in national political advertising across sports, news and entertainment.
Murdoch cautioned that political advertising can displace base-market advertising at local stations when inventory becomes constrained.
Distribution Revenue Benefits From FOX One
Distribution revenue increased 9%, with cable distribution revenue up 10% on affiliate-renewal pricing, subscriber trends and the contribution from FOX One, the company’s direct-to-consumer service.
FOX said that, including incremental subscribers from FOX One, it recorded positive subscriber growth over the trailing 12 months. Murdoch said 97% of new FOX One subscribers do not have a cable subscription, indicating that most of the service’s subscribers are incremental rather than shifting from traditional pay TV.
Subscriber acquisitions in September increased more than 30% from the beginning of the prior year’s football season, Murdoch said. He added that subscribers have shown a healthy balance of news and sports consumption.
Still, Murdoch said FOX One’s subscriber base could be seasonal as sports calendars change. He said the service may not always be able to offset traditional distribution subscriber losses as sports seasons begin and end.
Tubi Extends Growth Momentum
Tubi revenue increased 35% year over year, supported by a 23% increase in total viewing time. Murdoch said engagement was driven by Tubi’s content library, its World Cup hub, 10 new originals and content from more than 600 creators.
Tomsic said Tubi delivered mid-30% revenue growth and increased its year-over-year EBITDA contribution. Murdoch attributed the platform’s advertising appeal partly to its audience demographics, describing its users as young, diverse and largely “cordless,” making them more difficult for advertisers to reach through traditional television.
Management said Tubi’s growth has continued into the current quarter. Murdoch said the company expects Tubi eventually to become a business with margins in the 20% range as it matures.
Segment Performance and Capital Position
- Cable Network Programming: Revenue rose 8% and EBITDA increased 7%. Advertising revenue grew 8%, primarily due to sports advertising and the World Cup, partly offset by lower digital news advertising revenue. Segment expenses increased 10% due to higher sports programming rights, production costs and news programming costs.
- Television: Revenue grew 32% and EBITDA increased 134%. Advertising revenue rose 16%, driven by the World Cup and early midterm political advertising at FOX-owned stations. Distribution revenue increased 4%, while content and other revenue declined 4% because of lower entertainment studio content revenue.
FOX generated $503 million in free cash flow during the quarter. Tomsic said the improvement primarily reflected the timing of World Cup working capital: rights payments were made in fiscal 2026, while advertising receivables are being collected through the first half of fiscal 2027.
The company ended the quarter with approximately $4.5 billion in cash and $6.6 billion in debt. FOX was inactive with its share repurchase program during the quarter but expects full-year repurchases to remain in its historical range and anticipates resuming buybacks in the current quarter, Tomsic said.
Management did not take questions about FOX’s pending acquisition of Roku. Murdoch said the companies have received required shareholder and foreign regulatory approvals and are working with the U.S. Department of Justice to obtain Hart-Scott-Rodino clearance. FOX expects to close the transaction as soon as possible.
About FOX (NASDAQ:FOX)
Fox Corporation NASDAQ: FOX is a media and entertainment company formed in 2019 following the acquisition of most of 21st Century Fox's entertainment assets by The Walt Disney Company. Fox operates a portfolio of news, sports, entertainment and local television businesses primarily serving audiences in the United States.
The company's FOX News Media segment includes FOX News Channel, FOX Business Network, FOX News Digital and the FOX Nation streaming service. Its FOX Sports business provides live sports programming through the FOX broadcast network, FS1, FS2, FOX Deportes, the Big Ten Network and related digital platforms.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.
Before you consider FOX, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and FOX wasn't on the list.
While FOX currently has a Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Nuclear energy is entering a new growth cycle as rising power demand, expanding data centers, and renewed policy support bring the sector back into focus. After strong gains in recent years, the most impactful phase of nuclear investment may still be ahead. This report highlights seven nuclear energy stocks positioned across the value chain—combining near-term revenue with long-term upside as next-generation technologies scale. Click the link below to unlock the full list.
Get This Free Report
Continue following MarketBeat
Add MarketBeat as your preferred source on Google to see our latest stories in your feed.
