FOXA

Fox Corporation recently reported past fourth-quarter and full-year 2026 results, with quarterly sales rising to US$4,212 million while net income eased to US$691 million, and also filed a universal shelf registration covering multiple classes of stock and debt. Alongside these mixed earnings, Fox’s board approved a higher semi-annual dividend of US$0.29 per share, signaling ongoing commitment to shareholder income even as full-year net income and earnings per share declined. Next, we’ll examine how Fox’s dividend increase, set against softer full-year earnings, reshapes the investment narrative around its future earnings power. We've uncovered the 10 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. To own Fox today, you need to believe its focus on live news, sports and ad-supported streaming can still convert strong audience reach into durable cash generation, even as traditional TV faces pressure. The latest results, with higher quarterly sales but softer full-year earnings, do not radically alter that near term story. The key catalyst remains how effectively Fox monetizes its brands across linear and digital, while the biggest risk is margin pressure from rising content and rights costs. The dividend increase to US$0.29 per share sits at the center of this discussion. It reinforces Fox’s willingness to return cash to shareholders at a time when full year net income fell to US$1,685 million and net margins compressed. Set against the new universal shelf registration for equity and debt, the payout decision highlights the trade off between funding growth, maintaining financial flexibility and sustaining investor income. Yet investors should also weigh the risk that rising sports rights costs and content spend could eventually squeeze earnings more than many expect... Read the full narrative on Fox (it's free!) Fox's narrative projects $19.0 billion revenue and $2.6 billion earnings by 2029. This requires 3.5% yearly revenue growth and about a $0.9 billion earnings increase from $1.7 billion today. Uncover how Fox's forecasts yield a $71.56 fair value, a 3% upside to its current price. Some of the most optimistic analysts were expecting Fox to reach about US$18.6 billion in revenue and US$2.7 billion in earnings, yet the latest earnings miss and softer margins could challenge that view or reinforce it, depending on how you see the balance between Tubi’s growth potential and the risk that cord cutting and rights inflation eat into those forecasts. Explore 5 other fair value estimates on Fox - why the stock might be worth 42% less than the current price! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your Fox research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision. Our free Fox research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Fox's overall financial health at a glance. Don't miss your shot at the next 10-bagger. Our latest stock picks just dropped: Uncover the next big thing with 20 elite penny stocks that balance risk and reward. Capitalize on the AI infrastructure supercycle with our selection of the 56 best 'picks and shovels' of the AI gold rush converting record-breaking demand into massive cash flow. AI is about to change healthcare. These 40 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include FOXA. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. Fox (FOXA) has just reported fourth quarter and full year 2026 results, pairing higher sales with lower net income compared with the prior year, and lifting its semi annual dividend payout to shareholders. See our latest analysis for Fox. Fox shares have climbed in recent weeks, with a 30 day share price return of 20.08% and a 1 year total shareholder return of 21.33%, while the year to date share price return is down 6.20%. This suggests that recent momentum has picked up following the latest earnings, dividend increase, and the August 10 universal shelf registration filing. If Fox’s recent move has you rethinking where growth could come from next, it can help to broaden your search with 21 top founder-led companies Fox now trades close to analyst targets, yet intrinsic value estimates suggest an 8% premium. After this sharp rebound, is the stock leaning toward fair value or beginning to move into overvalued territory? With Fox last closing at $69.19 against a narrative fair value of $71.56, the story centers on whether modest growth assumptions can still justify that gap using a 10.4% discount rate. Read the complete narrative. The key narrative hinges on how Fox might shift its earnings mix, lean on margin expansion, and rely on a different future P/E to make the math add up. The core assumptions tie together steady revenue growth, a higher profit share from each dollar of sales, and a valuation multiple that sits below many peers. Readers may be interested in which of these levers contributes most to the $71.56 fair value and the timeframe assumed in the analysis. Result: Fair Value of $71.56 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, the Fox narrative can still be challenged if cord cutting accelerates faster than Tubi and FOX One grow, or if rising sports rights costs squeeze margins. Find out about the key risks to this Fox narrative. The earlier narrative framed Fox as modestly undervalued based on earnings and multiples. The SWS DCF model tells a different story, with a fair value estimate of $64.06 versus the current $69.19 share price, which points to Fox trading at a premium instead. That gap is not huge, but it signals less room for error if cash flows or growth assumptions disappoint. For investors weighing both approaches, the key question is which set of assumptions feels more realistic for Fox over the next few years. Look into how the SWS DCF model arrives at its fair value. Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Fox for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 53 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. Given the mixed signals around Fox, the next move is yours. Review the underlying data and pressure test the story against your own expectations, then weigh up the 3 key rewards and 1 important warning sign If Fox has sharpened your focus on where to put fresh capital next, do not stop here. Use targeted screens to quickly surface other stocks that fit your checklist. Target steady cash generators by checking companies with robust finances through the solid balance sheet and fundamentals stocks screener (50 results). Hunt for potential mispricings by scanning for 53 high quality undervalued stocks that may warrant a closer look before other investors catch on. Prioritise resilience by reviewing 80 resilient stocks with low risk scores that could help cushion your portfolio when conditions get tougher. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include FOXA. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Fox’s second quarter was marked by strong results, with management crediting the outperformance to robust advertising momentum across its live sports and news programming, as well as rapid growth in its streaming platform, Tubi. CEO Lachlan Murdoch highlighted the successful broadcast of the FIFA Men’s World Cup and the launch of FOX One as key contributors to audience engagement and incremental revenue. Murdoch pointed out, “We are very pleased with the strength of the demand for impressions across sports, news, the local stations, Tubi and also entertainment.” Is now the time to buy FOXA? Find out in our full research report (it’s free). Revenue: $4.21 billion vs analyst estimates of $3.65 billion (28.1% year-on-year growth, 15.5% beat) Adjusted EPS: $1.79 vs analyst estimates of $1.38 (29.3% beat) Adjusted EBITDA: $1.20 billion vs analyst estimates of $1.00 billion (28.4% margin, 19.4% beat) Operating Margin: 25.7%, in line with the same quarter last year Market Capitalization: $24.9 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. John Hodulik (UBS) asked about the strength of the ad market and linear versus digital trends. CEO Lachlan Murdoch explained that FOX saw double-digit upfront growth across categories and continued strong demand, while Tubi competed well in a crowded connected TV market. Michael Morris (Guggenheim) questioned the sustainability of World Cup-driven gains. Murdoch responded that the event showed FOX’s ability to amplify live sports, helping secure future rights and enhance long-term relationships with leagues and advertisers. Michael Ng (Goldman Sachs) focused on Tubi’s revenue drivers and digital investment levels. Murdoch highlighted Tubi’s unique audience characteristics, while CFO Steve Tomsic clarified that digital investments have decreased as platforms scale profitably. Peter Supino (Wolfe Research) inquired about Tubi ad sales trends and FOX One subscriber retention. Murdoch noted Tubi’s efficient pricing despite competition and emphasized that FOX One’s new subscribers are incremental, not replacing traditional pay-TV customers. Sean Diffley (Morgan Stanley) asked about political ad revenue expectations and capital allocation post-Roku deal. Murdoch projected a record midterm ad cycle, while Tomsic confirmed ongoing share repurchases supported by the company’s balance sheet. In the coming quarters, the StockStory team will monitor (1) the pace of digital revenue growth at Tubi and FOX One, (2) the extent to which political advertising provides an uplift during the midterm cycle, and (3) progress on closing and integrating the Roku acquisition. We will also watch for updates on sports rights renewals and subscriber retention across platforms. FOX currently trades at $63.16, up from $58.68 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members). ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies. Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.

Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. After a strong three year run that has seen Fox return 96.5%, the stock now sits in an interesting spot where a Discounted Cash Flow (DCF) estimate points to a level close to its current price, while market multiples still screen it as undervalued. Fox has delivered a 96.5% return over the last three years, which means recent buyers are coming in after a long period of gains rather than at the start of a move. Growth in live events and digital platforms like Tubi and FOX One can support the earnings outlook. At the same time, reliance on event driven advertising and shifting viewing habits may leave cash flows more exposed to swings in audience and ad demand. On Simply Wall St's broader valuation checks, Fox scores 4 out of 6, which points to a mixed picture rather than a clear bargain or clear overvaluation. The issue now is whether Fox's recent share price strength already reflects the intrinsic value suggested by the DCF work, or whether the multiples signal leaves more upside on the table. Fox delivered 18.6% returns over the last year. See how this stacks up to the rest of the Media industry. The Discounted Cash Flow (DCF) model values Fox based on the cash it is expected to generate for shareholders over time. Fox produced about $1.5b in free cash flow over the last twelve months, and the model assumes cash flows that grow from current levels rather than a sharp ramp up or steep decline. On those projections, the DCF points to an estimated intrinsic value of about $65 per share. That is only slightly above the current share price, which implies the stock is about 0.9% undervalued rather than offering a wide margin of safety. The recent FIFA Men's World Cup driven advertising strength and growth from Tubi and FOX One help explain why the current price already sits close to the cash flow based estimate. Based on the DCF numbers, Fox appears roughly fairly valued with only a small discount to intrinsic value. Fox is fairly valued according to our Discounted Cash Flow (DCF), but this can change at a moment's notice. Track the value in your watchlist or portfolio and be alerted on when to act. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Fox. P/E suits Fox because earnings remain a key anchor for how investors look at established media groups. Fox trades on a P/E of about 15.9x, which sits below the media industry average of 21.5x and also below the peer group average of 29.5x. That means you are paying less per dollar of current earnings than for many comparable media stocks. Simply Wall St's fair P/E ratio for Fox is about 20.8x, which incorporates its growth profile, margins, size and risk. Compared with that benchmark, the current multiple is lower and indicates that the stock trades at a discount to what the model identifies as a reasonable earnings-based level. On the P/E multiple, Fox stock appears undervalued compared with both its industry and its modelled fair ratio. See what the numbers say about this price — find out in our valuation breakdown. Fox's valuation puzzle brings the focus to Simply Wall St Narratives. These set out the earnings, margin and growth assumptions that would need to hold for the stock to be worth materially more or less than today's price, and sit on the company’s Community page. Each Narrative presents Fox's implied fair value as a thesis about the business that you can revisit over time, rather than a one off snapshot. This way you can see how the story tracks against reality. Community views on Fox sit far apart, with one side focused on upside from digital and streaming and the other fixated on rights costs and leverage. Bull case: 34% undervalued Read the full Bull Case to see why Fox could be undervalued Bear case: 22% overvalued Read the full Bear Case to see why Fox could be overvalued Do you think there's more to the story for Fox? Head over to our Community to see what others are saying! For Fox, the Discounted Cash Flow (DCF) work points to an intrinsic value that sits close to the current share price, so the stock no longer screens as obviously cheap on cash flow alone. The earnings multiple still screens as undervalued relative to peers and the modelled fair P/E, which fits with the mixed overall valuation checks rather than a clear signal either way. The key question from here is whether Fox can translate audience and product momentum in areas like live events and Tubi into durable, less volatile cash flows. If that occurs, today’s discount on earnings could appear more like a potential opportunity than simply the market correctly pricing the risks. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include FOXA. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Fox Corporation FOX used its fiscal fourth-quarter 2026 earnings call to stress that advertising strength is carrying into the new year, while Tubi and FOX One deepen their digital mix. Management also cast the World Cup as a quarter driver and a showcase for FOX's sports reach. Adjusted earnings per share of $1.79 topped the Zacks Consensus Estimate of $1.34. Revenues of $4.21 billion surpassed the consensus estimate of $3.60 billion. The larger focus was sustaining momentum into fiscal 2027. Fox Corporation price-consensus-eps-surprise-chart | Fox Corporation Quote Executive chairman and CEO Lachlan Murdoch said that demand remains strong across sports, news, local stations, Tubi and entertainment. FOX's upfront produced double-digit volume growth across sports, news and Tubi. Murdoch said that eight of the 10 advertising categories FOX tracks increased in the upfront. He added that momentum has continued into the fiscal first quarter. A Morgan Stanley analyst asked about political advertising. Murdoch cited industry tracking above $11 billion for the midterm cycle and said that FOX expects a record cycle, exceeding more than $260 million generated during the last midterms. Murdoch said that Tubi revenues rose 35% as viewing time increased 17%. The service ended fiscal 2026 with 110 million monthly active users, and its World Cup Hub attracted more than 20 million viewers. Responding to Goldman Sachs and Wolfe Research analysts, Murdoch said that World Cup revenues were relatively small within Tubi's overall growth. He also said that Tubi has not needed to lower advertising rates despite a competitive connected-TV market. FOX One remained ahead of expectations. Murdoch said that subscribers have been incremental to traditional pay TV and churn has been below expectations, while chief financial officer Steven Tomsic said that digital investment fell below $200 million in fiscal 2026 and should improve further in fiscal 2027. Tomsic said that FOX will retain a World Cup benefit in the fiscal first quarter, although total tournament revenues are weighted toward fiscal 2026. Fiscal 2027 World Cup revenues will be weighted toward Television. Midterm elections are another advertising tailwind, particularly for local stations and Tubi. Tomsic also expects a more normalized distribution renewal schedule in fiscal 2027, skewed toward Television. Both Cable Network Programming and Television are expected to contribute to distribution revenue growth. That follows fourth-quarter companywide distribution growth of 5%, with cable distribution up 7%. Murdoch told a UBS analyst that FOX does not expect changes to its NFL contractual terms before the 2030 season. The existing agreement runs through the completion of 2029. A JPMorgan analyst pressed on timing and the broader sports-rights portfolio. Murdoch declined to detail negotiations but described the NFL relationship as positive and said that FOX sees a clear path through 2029 and beyond. Addressing Guggenheim, Murdoch said that the World Cup demonstrated FOX's ability to amplify premium sports across broadcast, cable and digital platforms. He emphasized reach, marketing, production and promotion as value FOX brings to rights partners. Tomsic said that FOX repurchased $2 billion of shares in fiscal 2026 and raised its semiannual dividend to $0.29 per share. June-end cash was about $4.2 billion against $6.6 billion of debt. Management expects the pending Roku transaction to close in the first half of calendar 2027. Tomsic said that FOX is expected to close the deal at about 2.8 times net leverage. Asked by Morgan Stanley about buybacks, Tomsic said that repurchases should continue through the transaction process and afterward, preserving capital-return activity alongside the planned acquisition. Murdoch's message centered on carrying advertising momentum, digital engagement and live-content scale into fiscal 2027. Tomsic paired that with expectations for further digital bottom-line improvement and distribution growth. FOX also kept its NFL timetable, FOX One strategy and capital allocation approach intact while positioning Roku as an expansion of connected-TV distribution and advertising. Currently, FOX sports a Zacks Rank #1 (Strong Buy), the top rating in the Zacks framework for identifying stronger near-term performance potential through earnings-estimate revisions. Its Value Score is B, while it has a Growth Score of D, a Momentum Score of D and a VGM Score of D. You can see the complete list of today’s Zacks #1 Rank stocks here. The combination is mixed because Zacks identifies A or B Style Scores as the strongest complements to Rank #1 and #2 stocks. The Zacks Rank can change as analysts revise estimates following the just-reported results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Fox Corporation (FOX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Fox Corporation FOXA used its fourth-quarter fiscal 2026 call to emphasize sustained advertising demand and improving digital economics, while management expects the remaining World Cup benefit and the midterm political cycle to support fiscal 2027. Management said Tubi and FOX One are running ahead of expectations. Adjusted EPS of $1.79 topped the Zacks Consensus Estimate of $1.34, while revenues of $4.21 billion exceeded the $3.6 billion consensus. Fox Corporation price-consensus-eps-surprise-chart | Fox Corporation Quote Executive chairman and CEO Lachlan Murdoch said FOX completed one of its strongest upfronts, with double-digit volume growth across sports, news and Tubi. Eight of the 10 advertising categories it tracks increased. Murdoch said that the strength carried into fiscal 2027. He expects a record midterm political advertising cycle for FOX, compared with more than $260 million of revenue in the prior midterm cycle. Chief financial officer Steve Tomsic expects both cable and television to contribute to distribution revenue growth in fiscal 2027, alongside further bottom-line improvement from the digital portfolio. Murdoch said Tubi posted 35% fourth-quarter revenue growth and a 17% increase in viewing time, ending fiscal 2026 with 110 million monthly active users. Its World Cup Hub attracted more than 20 million viewers. A Goldman Sachs analyst asked how much the World Cup drove Tubi. Murdoch said tournament revenues were important but relatively small compared with Tubi’s overall growth, with momentum continuing into fiscal 2027. Murdoch said FOX One subscribers have been incremental to traditional pay TV and churn remains below expectations. Tomsic said digital investment fell below $200 million in fiscal 2026 from just under $300 million in fiscal 2025. Murdoch framed the World Cup as proof of FOX’s ability to deploy its stations, sports, news, Tubi, FOX One and digital properties around a major live event. The tournament lifted advertising while increasing sports rights amortization and production costs. Television segment EBITDA rose 129% year over year, while Cable Network Programming EBITDA declined 3%. A Guggenheim analyst asked how that momentum could extend beyond the tournament. Murdoch emphasized FOX’s marketing, reach and production capabilities as part of the value it can offer sports leagues. A UBS analyst asked whether NFL rights pricing could change before 2030. Murdoch said FOX will not amend its existing contractual relationship, which runs through completion of the 2029 season. A JPMorgan analyst later asked about the timing of league discussions and FOX’s broader rights strategy. Murdoch said talks about extensions beyond the current term would occur closer to the agreement’s end. Murdoch also pointed to FOX’s recent acquisition of NFL rights in Mexico and reiterated that the company has a positive relationship with the league. Murdoch said the pending Roku acquisition remains on track to close in the first half of calendar 2027. He described it as an expansion of FOX’s connected-TV distribution, advertising and subscription capabilities. Tomsic said FOX expects to close the deal at about 2.8 times net leverage. He also said the share repurchase program should continue through the transaction’s pendency and beyond. FOX ended the quarter with about $4.2 billion of cash and $6.6 billion of debt. The board raised the semiannual dividend to 29 cents per share, with $3.4 billion remaining under the repurchase authorization. Murdoch’s message centered on sustaining advertising demand, expanding digital distribution with limited pay-TV cannibalization and using premium live content to reinforce FOX’s reach with viewers, advertisers and distributors. Tomsic emphasized improving digital economics, distribution growth across both operating segments and continued capital returns while the Roku transaction remains pending. FOXA carries a Zacks Rank #3 (Hold), with a Value Score of B, Growth Score of D, Momentum Score of C and VGM Score of C. Value is the strongest of the four indicators, while Growth is the weakest. Zacks Style Scores complement the Zacks Rank, with A and B grades preferred to lower scores. FOXA’s combination does not match the framework’s preferred pairing of a Zacks Rank #1 (Strong Buy) or #2 (Buy) with A or B Style Scores. The Zacks Rank can change as earnings estimates are revised after the latest results. You can see the complete list of today’s Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Fox Corporation (FOXA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Fox Corporation FOXA reported fourth-quarter fiscal 2026 adjusted earnings of $1.79 per share, which beat the Zacks Consensus Estimate of $1.34 by 33.58% and increased 41% year over year from $1.27.Revenues increased 28.1% year over year to $4.21 billion, ahead of the Zacks Consensus Estimate by 17.01%. Growth was led by strength in advertising revenue tied to the FIFA Men's World Cup and continued digital growth at Tubi, partially offset by lower Content and other revenue. (Read More: FOXA Q4 Earnings Surpass Estimates, Revenues Increase Y/Y)FOX One continued to exceed internal expectations, adding subscribers on the strength of the World Cup while producing minimal cannibalization of the traditional pay TV base. Tubi posted its highest revenue quarter on record, up 35% on a 17% rise in total viewing time, closing the fiscal year with 110 million monthly active users. Fox Corporation revenue-ttm | Fox Corporation Quote Advertising revenues jumped 77.7% year over year to $1.92 billion, topping the Zacks Consensus Estimate of $1.73 billion by 10.5%. Distribution revenues rose 4.8% to $2.03 billion and exceeded the $1.93 billion estimate by 5.6%. Content and other revenues declined 2.6% to $262 million, missing the $433.86 million estimate by 39.6%, primarily due to the timing of sports sublicensing revenue.The advertising gains reflected strong demand across sports, news, local stations, Tubi and entertainment. FOX's upfront also delivered double-digit volume growth across sports, news and Tubi, while strength extended across several major advertising categories, including entertainment, financial services, auto, pharma, dining, retail, technology and telecom. Television revenues increased 45.4% year over year to $2.48 billion, beating the Zacks Consensus Estimate of $2.33 billion by 6.6%. Advertising revenues surged 107.9% to $1.46 billion and topped the $1.38 billion consensus by 5.7%, driven by the World Cup, higher political advertising at FOX Television Stations and continued Tubi growth. Television adjusted EBITDA soared 128.9% to $705 million, surpassing the $516.9 million consensus by 36.4%. Cable Network Programming revenues rose 9% to $1.67 billion but missed the Zacks Consensus Estimate of $1.73 billion by 3.3%. Distribution revenue increased 6.9% to $1.18 billion, beating the $1.10 billion estimate by 6.8%, while advertising revenue climbed 22% to $461 million and topped the $369.15 million consensus by 24.9%. Cable adjusted EBITDA declined 2.5% to $728 million and fell 4.5% short of the $762.5 million consensus. Revenue growth was more than offset by a 20% increase in expenses, primarily reflecting higher sports programming rights amortization and production costs associated with the World Cup. Content and other revenues dropped 38.9% to $33 million, missing the $228.1 million Zacks estimate by 85.5%. Tubi remained a key contributor to FOX's growth. Revenues increased 35% in the quarter, supported by a 17% increase in total viewing time. Tubi's World Cup Hub attracted more than 20 million viewers during the tournament, while two early-round match simulcasts generated two of the platform's highest-traffic days. FOX One also benefited from the World Cup, driving incremental subscriber acquisition and strong retention. Management said the service produced minimal cannibalization of the traditional pay-TV business, while contributing meaningful additional distribution revenue across the company. Fox currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Zacks Consumer Discretionary sector are Newsmax NMAX, H World Group Limited HTHT and Viking Holdings VIK, each currently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Shares of Newsmax have returned 16.1% in the year-to-date period. Newsmax is slated to report second-quarter 2026 results on Aug. 13.Shares of H World Group Limited have declined 9.9% in the year-to-date period. H World Group Limited is slated to report second-quarter 2026 results on Aug. 17.Shares of Viking Holdings have returned 48.2% in the year-to-date period. Viking Holdings is slated to report second-quarter 2026 results on Aug. 19. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Fox Corporation (FOXA) : Free Stock Analysis Report H World Group Limited Sponsored ADR (HTHT) : Free Stock Analysis Report Viking Holdings Ltd. (VIK) : Free Stock Analysis Report Newsmax Inc. (NMAX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Fox Corporation FOXA reported fourth-quarter fiscal 2026 adjusted earnings of $1.79 per share, which surpassed the Zacks Consensus Estimate by 33.58%. The figure increased 41% year over year.Revenues increased 28.1% year over year to $4.21 billion, surpassing the consensus mark by 17.01%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. Fox Corporation price-consensus-eps-surprise-chart | Fox Corporation Quote 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. 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. 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. 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. 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. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Fox Corporation (FOXA) : Free Stock Analysis Report American Public Education, Inc. (APEI) : Free Stock Analysis Report Target Hospitality Corp. (TH) : Free Stock Analysis Report Newsmax Inc. (NMAX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 8:30 a.m. ET Chief Investor Relations Officer - Gabrielle Brown Executive Chair and Chief Executive Officer - Lachlan Murdoch President and Chief Operating Officer - John Nallen Chief Financial Officer - Steve Tomsic Need a quote from a Motley Fool analyst? Email [email protected] Operator: Ladies and gentlemen, thank you for standing by. Welcome to the Fox Corporation Fourth Quarter Fiscal Year 2026 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. I'll now turn the conference over to Chief Investor Relations Officer, Ms. Gabrielle Brown. Please go ahead, Ms. Brown. Gabrielle Brown: Thank you, Polly. Good morning, and welcome to our fiscal 2026 fourth quarter earnings call. Joining me on the call today are Lachlan Murdoch, Executive Chair and Chief Executive Officer; John Nallen, President and Chief Operating Officer; and Steve Tomsic, our Chief Financial Officer. First, Lachlan and Steve will give some prepared remarks on the most recent quarter, and then we'll take questions from the investment community. Please note that this call may include forward-looking statements regarding FOX Corporation's financial performance and operating results. These statements are based on management's current expectations, and actual results could differ from what is stated as a result of certain factors identified on today's call and in the company's SEC filings. Additionally, this call will include certain non-GAAP financial measures, including adjusted EPS and adjusted EBITDA or EBITDA, as we refer to it on this call. Reconciliations of non-GAAP financial measures are included in our earnings release and our SEC filings, which are available in the Investor Relations section of our website. We also refer to free cash flow, which we define as net cash provided by operating activities less capital expenditures. And with that, I'm pleased to turn the call over to Lachlan. Lachlan Murdoch: Thank you, Gaby, and thank you all for joining us today. Our fiscal 2026 was a notable year for FOX. We successfully launched our direct-to-consumer streaming service, FOX One, broadcast the FIFA Men's World Cup to record audiences in the U.S., continued to keep America informed through a dynamic and fast-moving news cycle, enhanced Tubi's position as a leading streaming service and announced the next chapter in FOX's digital evolution with our pending acquisition of Roku. These milestones were underpinned by a year of record financial performance. Revenue grew by 5% to over $17 billion, driven by record advertising and distribution revenue, while EBITDA grew 8% to a record $3.9 billion. These are excellent results, made even more impressive by comparison to the especially strong prior year, which benefited from the Super Bowl and the presidential election. We closed the year with outstanding top and bottom line momentum. Our fiscal fourth quarter total revenue increased 28% to $4.2 billion and EBITDA improved 27% to $1.2 billion. On the distribution side, revenue in the fourth quarter increased 5%, supported in part by the strong momentum of FOX One, which continues to exceed our expectations. Advertising revenue during the quarter was notably strong, increasing 78% with growth fueled by continued strength of Tubi, healthy advertising trends across the broader FOX portfolio and our broadcast of the first stages of the 2026 FIFA Men's World Cup. At a time when audiences are increasingly fragmented, the World Cup demonstrated the unique power of FOX to deliver live premium sports that bring people together at scale. I'm proud of what the team achieved through the broadcast of the entire World Cup across the entirety of FOX. As we have shown time and again, we excel at mobilizing the whole company to deliver outstanding experiences for viewers, advertisers and distributors. What is not explicit on screen or in the financial results is the intense amount of skillful work, preparation, promotion, production, marketing and ad sales that goes on behind the scenes. We had thousands of colleagues directly involved in the production of all of our programming over the course of the tournament. We deployed all of our platforms, including the stations, the network, FOX Sports, FOX News, FOX One, Tubi and our other digital assets to proactively drive record-breaking broadcasts from FOX. From the flawless simulcast of the opening matches on Tubi right through to the historic final, we brought the 104 matches and shoulder programming to American homes and watch parties like no other World Cup before. The success of the World Cup led FOX to top all networks in live event sports consumption in fiscal '26, a remarkable achievement given that the next highest-rated broadcast network benefited from both the Super Bowl and the Winter Olympics. The tournament also proved to be a customer acquisition opportunity for FOX One, driving incremental subscriber acquisition and strong retention rates that surpassed our expectations. Importantly, through FOX One, we continue to see minimal cannibalization of our traditional pay-TV business, reinforcing our strategy of targeting the cordless population, which has delivered meaningful additional distribution revenue across the company. We are a nimble, purposeful company, expert at delivering complex events at scale. We'll demonstrate this expertise again as we begin another broadcast season of the NFL on FOX starting next month. In advance of the season, we've had a recent thorough and productive discussions with the league. And as a result, we will not be making any amendments to our existing contractual relationship, which extends to the completion of the 2029 season. We'll be ready to engage with the NFL on the opt-out seasons and beyond at a date closer to the 2030 season, which has been the customary timetable. While our sports calendar had the most attention in the quarter, FOX News remained the leader in live news, finishing the quarter and the year as both the most watched cable network in total day and in prime time, while continuing to reinforce its leadership position with market share levels well ahead of all of its competitors combined. This robust audience engagement, combined with the addition of another 400 new advertisers to the platform during the year, helped drive record revenue at FOX News Media in both the fourth quarter and the fiscal year. Tubi delivered its most streamed and highest revenue quarter ever. Fourth quarter revenue growth accelerated to 35%, fueled by a 17% increase in total viewing time. Tubi's World Cup Hub attracted over 20 million viewers across the tournament, while additionally, the simulcast of 2 early round matches generated 2 of the highest traffic days in the platform's history in addition to promoting the tournament in the broadest way possible. That momentum helped Tubi close the fiscal year with 110 million monthly active users. Tubi and FOX One are the result of a successful strategy and skilled execution. Our pending acquisition of Roku is an extension of these. This transaction will bolster our position in connected TV distribution and advertising, which have compelling long-term growth profiles. FOX has deep digital resources and skills, most notably seen in our consumer-facing products such as Tubi, FOX One, FOX Nation and FOX News and FOX Sports Digital. We have developed these businesses across their growth path to become important digital brands. For example, when we acquired Tubi in its early stages, we have turned it into a leading streaming platform with 10x the revenue from when we started. The addition of Roku to FOX will expand our digital footprint and offerings even further. Roku brings us streaming at scale through its open partner-friendly platform that makes it a leading TV streaming platform in the U.S. Together, FOX and Roku combine premium live content, deep market relationships, scale distribution and leading platform capabilities, including subscriptions to respond to the evolving needs of consumers and advertisers. I know I speak for Anthony in saying that we are eager to get the transaction closed and for our teams to get started. While we are in the early approval process -- only in the early approval process, the transaction is on track, and we expect closing in the first half calendar 2027. We have had an outstanding fiscal 2026, and fiscal 2027 is also off to an excellent start. The success of the World Cup, combined with the early stages of the midterm political cycle has driven continued advertising momentum across our national, local and digital portfolio during our fiscal first quarter. The healthy advertising environment we saw throughout fiscal 2026 has carried into the new year, culminating in one of the strongest upfronts in our history with double-digit growth in volume. These results underscore the strength of the FOX portfolio and our unmatched ability to deliver premium, highly engaged audiences at scale across linear, digital and streaming platforms while also delivering sustained growth and shareholder value. I'll now turn it over to Steve to discuss the financials. Steven Tomsic: Thanks, Lachlan, and good morning, everyone. FOX has just delivered an exceptionally strong fiscal '26, highlighted by record annual revenue of over $17 billion and record EBITDA of $3.9 billion. Advertising revenue across the company grew 7%, which is particularly noteworthy when measured against last year's Super Bowl 59 and presidential election cycle. This growth was led by our broadcast of the 2026 FIFA Men's World Cup, along with continued growth at Tubi. Despite it being a relatively light year of renewals, distribution revenue increased 4%, led by 5% growth at our Cable segment. Content and other revenue was up 4%, primarily due to higher sports sublicensing revenue at our Cable segment. Total expenses increased 4%, mainly a result of World Cup rights and production costs, FOX One first year costs and higher digital content costs. Net income attributable to stockholders was $1.7 billion or $3.84 per share as compared to the $2.3 billion or $4.91 per share reported in fiscal '25. Excluding noncore items, full year adjusted net income was $2.4 billion and adjusted EPS was $5.42 per share, up 13% compared to the $4.78 per share reported in the prior year. Our financial delivery has been strong throughout fiscal '26, and we ended the year with tremendous momentum with our fiscal fourth quarter results headlined by 28% growth in total revenue and 27% growth in EBITDA. This was driven by a 78% increase in advertising revenue, primarily a result of this year's broadcast of the World Cup and accelerating growth at Tubi. Distribution revenue grew 5%, once again demonstrating the strength of our brands and focused portfolio of channels. Content and other revenue was $262 million as compared to the $269 million reported in the prior year quarter, primarily due to the timing of sports sublicensing revenue. Expenses increased 28%, driven by higher sports programming rights amortization and production costs led by the World Cup as well as costs associated with the growth of FOX One. Net income attributable to FOX stockholders was $691 million or $1.61 per share as compared to the $717 million or $1.57 per share reported in the prior year period. Excluding noncore items, adjusted net income was $765 million and adjusted EPS was $1.79, up 41% compared to the $1.27 per share recorded in the prior year period. Now let's turn to the quarterly results of our operating segments. Starting with the Cable Network Programming segment, where revenue grew 9% and EBITDA declined 3%. Cable advertising revenue grew 22% over the prior year, driven by this year's broadcast of the World Cup. Cable distribution revenue grew 7% over the prior year quarter as pricing gains from our affiliate renewals outpaced the impact from net subscriber declines, which remained consistent with the prior quarter at under 6.5% across our third-party distributors. This is before taking into account the meaningful positive contribution from FOX One. Cable content and other revenue declined 39% due to the timing of sports sublicensing revenue. Revenue growth at the Cable segment was more than offset by a 20% increase in expenses, primarily attributable to an increase in sports programming rights amortization and production costs led by the World Cup. Turning to our Television segment, which delivered 45% revenue growth and 129% EBITDA growth. Advertising revenue at our Television segment grew 108% over the prior year, led by the current year broadcast of the World Cup, higher political advertising revenue at our television stations and continued growth at Tubi, which was EBITDA positive in each quarter of fiscal 2026. Television distribution revenue was essentially flat compared to the prior year. Television content and other revenue was up 14%, primarily due to higher content revenues tied to our entertainment production studios. Expenses at the Television segment increased 27%, primarily reflecting higher sports programming rights amortization and production costs led by the broadcast of the World Cup. Turning to cash flow, where we generated robust quarterly free cash flow of $726 million. As expected, quarterly free cash flow was impacted by the timing of working capital related to the World Cup, where rights payments for the tournament landed in fiscal '26, while advertising receivables will be collected early in fiscal '27. Before we get to capital allocation and balance sheet, it is worth noting some key items for this coming fiscal year. From a cyclical event perspective, we will continue to have the benefit of the World Cup in the first quarter of '27 with total tournament revenues weighted towards fiscal '26 versus '27 and with 2027 revenues strongly weighted towards our television segment, which carried the majority of the knockout stage matches. The other major cyclical tailwind will be the midterm elections, which are expected to boost advertising revenues, particularly at our local stations and Tubi within our TV segment. From a distribution revenue perspective, we returned to a more normalized level of renewals in fiscal '27, which will be more skewed towards TV. We continue to expect both our cable and TV segments to contribute to distribution revenue growth in fiscal '27. With the performance of Tubi and FOX One running ahead of expectations, the level of investment in digital-led growth initiatives moderated in fiscal '26 versus the prior year, and we expect to see continued bottom line improvement in this portfolio going into fiscal '27. In terms of capital allocation, in fiscal '26, we repurchased an additional $2 billion through our share buyback program and distributed approximately $243 million in dividend payments. As Lachlan mentioned, underscoring our commitment to return capital to shareholders, today, we announced an increase in our semiannual dividend to $0.29 per share. With the payment of this dividend and our share repurchase activity, we will have cumulatively returned $10.7 billion of capital to our shareholders since the spin. This includes $8.6 billion of share repurchases, representing approximately 36% of our total shares outstanding since the launch of the buyback program in November 2019. This is all supported by the strength of our balance sheet, where we ended the quarter with approximately $4.2 billion in cash and $6.6 billion in debt. And with that, I'll turn the call back over to Gaby. Gabrielle Brown: Great. Thank you, Steve. And now we would be happy to take questions from the investment community. Please note that we are limited in what we can say regarding FOX's pending Roku transaction at this time. We have filed materials about the transaction, including the merger agreement with the SEC. When we file the registration statement for the transaction, it will provide additional information. For today, we would ask that questions focus on FOX's stand-alone results. Operator: [Operator Instructions] We have a question from John Hodulik of UBS. John Hodulik: Lachlan, any color you can provide on the underlying ad market? Some of your peers during the earnings season here have sort of talked about sort of mixed results. Maybe first on the linear side, what you saw in the upfront in terms of pricing and then sort of overall demand for sports and news inventory? And then any comments you could provide on the health of the CTV market. You had some positive trends there with Tubi, but just anything you could provide in terms of pricing and fill rates. And then lastly, just a quick clarification on your comments on the NFL. I guess, at this point, we shouldn't expect a change in pricing of those rights until 2030. And if you could provide any color in terms of how that came to be? I think there's a lot of expectations that you would see price increase either up for this season or for next season. So any color there would be great, too. Lachlan Murdoch: Great. Thanks, John. So first, on the ad market, we are seeing a very strong ad market for us. I can't speak for the total ad market, but certainly for our businesses and really across our entire portfolio, we are very pleased with the strength of the demand for impressions across sports, news, the local stations, Tubi and also entertainment. So it's a strong market. Our upfronts, we completed some time ago with double-digit volume growth across sports, news and Tubi. And we achieved rates of change, which we believe are sort of leading amongst our peers. It's always difficult to tell, but certainly, that's what our sort of front-facing sort of ad sales team is telling us. They believe we've both achieved this double-digit volume growth in addition to leading rates of change. So we're pleased with that. When I look at the categories that we're benefiting from, I think of the 10 categories that we track, we're up in sort of 8 of the 10 categories in the upfront. So entertainment, financial, auto, pharma, dining, retail, technology and telecom, all had very strong upfronts for us. So that's from an upfront perspective. Moving into where we are today, we're seeing that momentum and that strength continue into the first quarter. So we are very pleased. The CTV market remains very competitive. There's a lot of new inventory available in that market. But in that segment, Tubi has seen a 35% revenue growth, so has competed exceedingly well despite the heavy competition. And we're seeing that momentum continue in the first quarter. On the NFL, you're correct. We don't see any changes to our contractual terms until the 2030 season. But I can't really give you any color in terms of the background of how we've come to that. So -- but thank you for the question, John. Operator: We had a question from Michael Morris of Guggenheim. Michael Morris: Thanks for all the work on the World Cup. It was a very enjoyable event as a fan. I want to ask you about that. First of all, can you help us any more with the size of the contribution to ad revenue and profitability, both in the fiscal fourth quarter and what you're expecting from a contribution perspective in the fiscal first quarter? And then bigger picture, Lachlan, maybe for you, I'd love to hear how the strength of a unique event like the World Cup in the U.S. and North America, which is not recurring, does help the business on a sustainable basis? How do you keep momentum for this -- from this? And what else does this fuel for FOX going forward post World Cup? Lachlan Murdoch: Thanks, Mike. I'm glad you enjoyed the World Cup as a fan. We also enjoyed it as a business even more. Look, it was -- as you alluded to in your question, it really was a unique event. And I think in addition to the -- which I think speaks to the second part of your question, in addition to the sort of the strength of FOX, our focus, our ability to amplify the World Cup across our entire portfolio, a tremendous amount of planning and work went into this. I think it illustrated that really only FOX can take events like this and amplify them in a way that's frankly, unique in the market. So we're very pleased with the World Cup. Obviously, though, it's an American World Cup. It came in the summer months without a lot of sports competition, and I had tremendous enthusiasm by both viewers and fans, but also by our clients and advertising partners. So the stars really aligned to deliver a tremendous result for both FIFA and for fans and for us. And I think that goes to your -- the second part of your question, how this is -- how we move forward. I think we can show all sports leagues the value of FOX and the value of what we bring. Obviously, leagues are intent and focused on monetizing their IP and their properties most efficiently, but it's important to realize the strength of the marketing, the reach, the planning, the production that we put behind events like this. Operator: We have a question from Michael Ng of Goldman Sachs. Michael Ng: I have two as well. Just first on Tubi and the very strong 35% year-over-year growth. Maybe you could just help us break that down between benefits from things like the World Cup Hub versus underlying? And then could you just remind us what the digital loss number or digital investment number was for fiscal '25, so we can model off of that. And could you just comment on the free cash flow outlook for next year? Lachlan Murdoch: Great. Thanks, Mike. I'll talk to the Tubi momentum and Steve can talk to investment. You use your word losses, but really important and sort of disciplined investment in our digital categories. So Tubi grew, as you mentioned, 35%. That momentum has continued into the first quarter. That's driven off a number of things. Obviously, it's total viewing time, which grew 17%. That's the key metric. If we can continue to grow the engagement and the viewing time, the impressions and ad revenue flow from that. Why -- if you just take a step back and think about why Tubi has been so successful in addition to its sort of really industry-leading library and sort of user interface platform. It's that -- I think it's close to 70% of Tubi's viewers are cordless, right, or either cord-nevers or cord cutters. And this far exceeds any of our competitors in the marketplace. So we have the largest cohort of cordless, which means very hard to reach audience viewers for the advertising market. So when you add Tubi to a media buy, you really are getting -- expanding your reach dramatically and it's a very valuable position to be in. In addition to that, you have to remember that Tubi's viewing is like 96% of video on demand. Someone is actually choosing -- proactively choosing to watch that content in their living room or in their home. It's not a FAST channel or driven by FAST channels, which is much more akin to a linear stream, which makes its advertising even more valuable for that high engagement with the consumer. So we're very pleased with Tubi, and we're pleased to see its momentum continue into the new fiscal year. Steve? Steven Tomsic: Thanks, Lachlan. Mike, just in terms of the digital investments, just to remind people, in fiscal '25, we were just under $300 million in digital investments. This current year, just picking up the comments Lachlan had about Tubi and the outperformance there, plus the incredible outperformance we saw at FOX One saw that, that digital investment number collectively come in at less than $200 million in the most recent fiscal year, so fiscal '26, and we'd expect, as I mentioned in my remarks, for that improvement to continue going into fiscal '27. Lachlan Murdoch: And Mike, I didn't answer your part about the Tubi World Cup revenue. It was important revenue, good revenue, but it's relatively small in the context of the overall revenue growth of Tubi. Operator: We have a question from Peter Supino of Wolfe Research. Peter Supino: Another one on Tubi. I wondered if you could discuss ad sales at Tubi from the perspective of sellout and CPM trends and whether you can share levels, especially on sellout to give us a sense of how that's going? And obviously, it relates to your proposed acquisition of Roku, even though the question isn't directly about Roku. And as a brief second one, if you could talk about FOX One subscriber retention, how important has been bundling FOX One to your churn rate? Lachlan Murdoch: Thanks, Peter. So let me start with Tubi. So as we mentioned, the CTV ad market remains very active and very competitive, which means very price sensitive. Tubi, though, has always been priced very efficiently for the current environment. And so while I think other platforms in the market have had to reduce price to compete or compete for volume in the market, Tubi has not had to drop its rates of change of advertising rate in order to compete. So -- but that's partially because we're already a tremendously efficient advertising vehicle for people. So on the second question on FOX One, bundling is important for FOX One. We will continue to bundle FOX One where it makes sense for consumers. Consumers are either self-bundling, obviously, as they choose their streaming services. But where it makes sense, we will continue to bundle to make it more efficient for consumers and more attractive for consumers where there's a natural fit for FOX One with another provider. So that will continue. And the pleasing thing with FOX One, in addition to the fact that the subscribers to date are truly incremental. We've seen that through our data and our numbers. We are not churning any traditional MVPD customers, which are incredibly valuable to us. We are huge supporters of the MVPD marketplace. And so these are new subscribers, incremental subscribers that come from outside the traditional ecosystem. And so that's very encouraging. But the second thing that's encouraging is the churn has been well below our expectations and looks like it's continuing that in the first quarter. Operator: We have a question from Sean Diffley of Morgan Stanley. Sean Diffley: Two, if I may. First on political, any thoughts on how ad revs are shaping up into this cycle relative to prior? And then on capital allocation, obviously, Roku deal announced, you're still buying back stock. Anything we should think about in terms of being able to buy back more stock over the course of the next fiscal year? Lachlan Murdoch: Sure. Sean, so I'll answer political, Steve can talk to the rest of the question. So political ad sales, it looks like -- well, I'll start by saying the independent political ad tracking firms are estimating over $11 billion of political ad spending in the upcoming midterm election. This combined with what we're already seeing in an off-cycle year, strong political revenue, we believe this will be a record midterm cycle for us. Just to put that in context, in the presidential election, so not the midterm cycle, but the presidential election in 2024, we saw over $400 million of political revenue. And then 2 years before that, the last midterm cycle, we did over $260 million in revenue. And we would expect this midterm cycle to beat that and be a record cycle. Steven Tomsic: Yes. So Sean, in terms of capital allocation, listen, we ended the year with the balance sheet exactly where we expected it to be as we are planning out the Roku transaction. You remember the Roku sort of the coordinates on the deal from a leverage perspective, see us close the deal at about net leverage of 2.8x. And so the structure of that deal gives us an incredible amount of capital allocation flexibility. So you should expect that our buyback program continues unabated through the pendency of the transaction and beyond. Gabrielle Brown: We have time for one more question. Operator: We have a question from David Karnovsky of JPMorgan. David Karnovsky: Lachlan, I appreciate you can't give comments around the NFL conversations, but can you maybe shed any light into what your thinking was around engaging with the league now versus entering a more open market after '29. And then when we look at the rights landscape, there's a lot in the pipeline in the next couple of years, including some things that you're the incumbent on like MLB or World Cup. Just assuming the NFL would opt out, how are you thinking about your rights portfolio ahead of them? Lachlan Murdoch: Thanks, David. So we always err on the side of not going into specifics about discussions with our partners. But suffice to say that our relationship with the NFL is an incredibly positive one. We engage with them all the time. Obviously, we've been talking with them over the last period about the future of our rights, certainly for the next 4 years and then beyond the opt-out period. But we feel we continue to have a great relationship with them in a good place. When we sit down and talk about the contractual extension of our rights after 2029 in the 2030 season or 2029 season, I think we'll do that much closer to that date. I'd point to the fact that we might have talked about on the last earnings call that in Mexico, we've just taken the NFL rights for Mexico. We continue to promote and amplify their games and the league, which we've been doing for the last 30 years. So we're very pleased with the relationship, and we think we can see a clear path forward certainly through the '29 season and also beyond. Gabrielle Brown: Great. Thank you. At this point, we are out of time. But if you have any further questions, please give me or Charlie Costanzo a call. Thanks so much for joining us today. Lachlan Murdoch: Thanks, everyone. Thank you. Operator: Ladies and gentlemen, that does conclude the Fox Corporation Fourth Quarter Fiscal Year 2026 Earnings Conference Call. Thank you. Before you buy stock in Fox, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Fox wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $400,155!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,345,502!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 6, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Fox (FOXA) Q4 2026 Earnings Call Transcript was originally published by The Motley Fool

Fox (FOXA) came out with quarterly earnings of $1.79 per share, beating the Zacks Consensus Estimate of $1.34 per share. This compares to earnings of $1.27 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +33.58%. A quarter ago, it was expected that this TV broadcasting company would post earnings of $1.02 per share when it actually produced earnings of $1.32, delivering a surprise of +29.41%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Fox, which belongs to the Zacks Broadcast Radio and Television industry, posted revenues of $4.21 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 17.01%. This compares to year-ago revenues of $3.29 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Fox shares have lost about 19.7% since the beginning of the year versus the S&P 500's gain of 12.8%. While Fox has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Fox was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.80 on $4.1 billion in revenues for the coming quarter and $5.75 on $17.28 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Broadcast Radio and Television is currently in the bottom 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Gaiam (GAIA), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 10. This lifestyle media company is expected to post quarterly loss of $0.13 per share in its upcoming report, which represents a year-over-year change of -85.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Gaiam's revenues are expected to be $24.6 million, down 0.1% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Fox Corporation (FOXA) : Free Stock Analysis Report Gaia, Inc. (GAIA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research