FOX (FOXA) Financials

FOX’s latest quarter showed strong operating momentum, but bottom-line results remained uneven. Fourth-quarter fiscal 2026 revenue rose to $4.21 billion, up from $3.29 billion in the comparable quarter, while operating income increased to $971 million from $737 million. However, net income attributable to common shareholders declined modestly to $691 million from $717 million because other income shifted from a $222 million gain to a $50 million net expense.

Across fiscal 2026, revenue totaled approximately $17.1 billion, up about 5% from the comparable fiscal 2025 quarters. Operating income improved roughly 16% to $3.35 billion, indicating better underlying operating performance. Net income attributable to common shareholders, however, fell approximately 25% to $1.69 billion, reflecting large swings in non-operating income and expenses.

Cash generation was also volatile. FOXA produced $867 million of operating cash flow in the fourth quarter, rebounding sharply from negative operating cash flow in the first and second quarters. Still, estimated fiscal 2026 operating cash flow of approximately $2.0 billion was below the roughly $3.3 billion generated across the comparable fiscal 2025 quarters. The balance sheet remained liquid, with $3.60 billion of cash and equivalents and $7.54 billion of current assets against $2.60 billion of current liabilities as of March 31, 2026.

• Revenue growth accelerated: Fourth-quarter revenue increased approximately 28% year over year to $4.21 billion, and fiscal 2026 revenue was higher overall than the comparable prior-year period.
• Operating profitability improved: Fourth-quarter operating income rose about 32% year over year to $971 million. The operating margin also improved to approximately 23.1% from 22.4%, suggesting operating costs grew more slowly than revenue in the latest quarter.
• Share count continued to decline: Weighted-average basic shares fell to approximately 420 million in the latest quarter from 446 million in Q4 fiscal 2025 and 489 million in Q4 fiscal 2023. Ongoing repurchases may provide support for per-share results over time.
• Liquidity remains solid: FOXA had $3.60 billion of cash and equivalents and a current ratio of roughly 2.9 times at the latest reported balance-sheet date, providing flexibility for investment, dividends and buybacks.
• Long-term debt has been broadly stable: Long-term debt was approximately $6.61 billion at March 31, 2026, close to recent levels and below the roughly $7.2 billion reported in earlier periods.
• Capital spending remains moderate: Fourth-quarter purchases of property, plant and equipment were $141 million, or about 3.3% of revenue. This supports the business but represents a continuing use of operating cash.
• Operating performance is seasonal and inconsistent: Fiscal 2026 operating income ranged from $578 million in the second quarter to $975 million in the first quarter. Investors should expect meaningful quarter-to-quarter variation in FOX’s media and advertising businesses.
• Net income trails operating income growth: Despite stronger operating results, fiscal 2026 net income attributable to common shareholders declined from the comparable prior-year period because of unfavorable changes in other income and expense.
• Operating cash flow weakened on a year-to-date basis: Fiscal 2026 operating cash flow was below the comparable fiscal 2025 period. Earlier quarters were pressured by working-capital changes, including large cash outflows tied to operating assets and liabilities.
• Cash balances have declined from prior highs: Reported cash fell from $4.82 billion in Q3 fiscal 2025 to $3.60 billion in Q3 fiscal 2026 after significant share repurchases, dividends, investing expenditures and other cash uses.

Overall, the statements point to a company with improving revenue and operating earnings, a shrinking share base and adequate liquidity. The main risks for investors are earnings volatility from non-operating items, inconsistent cash conversion and the need to balance shareholder returns with FOXA’s sizable debt obligations and ongoing content and capital investments.