FOXA Q4 Earnings Surpass Estimates, Revenues Increase Y/Y

Distribution revenues (48.3% of total revenues) increased 5% year over year to $2.03 billion, driven by 7% growth at the Cable Network Programming segment.

Advertising revenues (45.5% of total revenues) increased 78% year over year to $1.92 billion, primarily due to the broadcast of the FIFA Men's World Cup and continued digital growth led by the Tubi AVOD service.

Content and other revenues (6.2% of total revenues) declined 3% year over year to $262 million, primarily due to the timing of sports sublicensing revenues.

Top-Line Details

Cable Network Programming revenues (39.6% of total revenues) increased 9% year over year to $1.67 billion.

The segment’s distribution revenues increased 7%, as contractual price increases were partially offset by the impact of net subscriber declines.

Advertising revenues rose 22%, driven by the FIFA Men's World Cup broadcast. Content and other revenues declined 39% year over year due to the timing of sports sublicensing revenues. 

Television revenues (58.9% of total revenues) increased 45% year over year to $2.48 billion.

The segment’s Advertising revenues surged 108%, primarily due to the FIFA Men's World Cup broadcast, continued digital growth led by the Tubi AVOD service and higher political advertising revenues at FOX Television Stations.

Distribution revenues were essentially unchanged year over year. Content and other revenues increased 14% year over year to $191 million, driven by higher entertainment content revenues.

FOX One continued to exceed expectations during the quarter, benefiting from FIFA Men's World Cup-driven subscriber additions while maintaining minimal cannibalization of the traditional pay-TV business. Tubi delivered its highest revenue quarter, with the metric increasing 35%, supported by a 17% rise in total viewing time and reaching 110 million monthly active users by fiscal year-end.

Operating Details

In the fourth quarter of fiscal 2026, operating expenses increased 35% year over year to $2.38 billion. As a percentage of revenues, operating expenses expanded 290 basis points (bps) to 56.5%.

Selling, general and administrative (SG&A) expenses increased 8% year over year to $637 million. As a percentage of revenues, SG&A expenses contracted 290 bps to 15.1%.

Total adjusted EBITDA increased 27% year over year to $1.2 billion. Adjusted EBITDA margin contracted 30 bps to 28.4%.

Cable Network Programming EBITDA declined 3% year over year to $728 million. Television EBITDA increased 129% year over year to $705 million.

Balance Sheet

As of June 30, 2026, Fox had $4.21 billion in cash and cash equivalents compared with $3.6 billion as of March 31, 2026.

As of June 30, 2026, Fox's total borrowings stood at $6.61 billion compared with $6.6 billion as of March 31, 2026.

FOXA’s Q1 and Fiscal 2027 Outlook

Fox expects continued advertising strength in the first quarter of fiscal 2027, supported by ongoing FIFA Men's World Cup contribution and early momentum from the U.S. midterm political cycle. The company secured one of its strongest upfronts in history with double-digit volume growth across most tracked categories.

World Cup revenues in fiscal 2027 will be weighted toward the Television segment given the concentration of knockout stage matches. Midterm election advertising is expected to be a record cycle, with industry estimates pointing to more than $11 billion in political ad spending, well above the $260 million Fox generated in the prior midterm cycle.

Both the Cable Network Programming and Television segments are expected to contribute to distribution revenue growth, with renewals normalizing and skewing toward Television. Digital losses across Tubi and FOX One narrowed to under $200 million in fiscal 2026 from just under $300 million in fiscal 2025, with further improvement expected in fiscal 2027.

On capital allocation, the buyback program is expected to continue through and beyond the pending Roku deal, supported by an expected net leverage of about 2.8 times at close. The transaction remains on track for closing in the first half of calendar 2027.

Zacks Rank & Stocks to Consider

FOXA currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Consumer Discretionary sector are American Public Education APEI, Newsmax NMAX and Target Hospitality TH. Each stock carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

American Public Education is set to report second-quarter 2026 results on Aug. 10. The Zacks Consensus Estimate for American Public Education’s second-quarter EPS is pegged at 36 cents, unchanged over the past 30 days and indicating an improvement of 1900% year over year.

Newsmax is slated to report second-quarter 2026 results on Aug. 13. The Zacks Consensus Estimate for Newsmax’s second-quarter loss is pegged at 2 cents per share, unchanged over the past 30 days and indicating an improvement of 96.61% year over year.

Target Hospitality is slated to report second-quarter 2026 results on Aug. 10. The Zacks Consensus Estimate for Target Hospitality’s second-quarter loss is pegged at 10 cents per share, unchanged over the past 30 days and indicating an improvement of 33.33% year over year.

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