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FOXA posted fiscal Q2 adjusted EPS of 82 cents, beating estimates, while revenues climbed 2% Y/Y to $5.18B.
FOXA's distribution revenues rose 4% Y/Y, driven mainly by growth in Cable Network Programming fees.
FOXA saw adjusted EBITDA fall 11.4% as expenses rose and the Television segment's profitability weakened.
Fox Corporation (FOXA - Free Report) reported second-quarter fiscal 2026 adjusted earnings of 82 cents per share, which beat the Zacks Consensus Estimate by 74.47%. The figure decreased 14.6% year over year.
Revenues increased 2% year over year to $5.18 billion, surpassing the consensus mark by 2.47%.
Distribution revenues (38.6% of total revenues) increased 4% year over year to $2 billion, driven by 5% growth at the Cable Network Programming segment and 1% growth at the Television segment.
Advertising revenues (47.4% of total revenues) increased 1% year over year to $2.46 billion, primarily fueled by higher sports and news pricing, continued digital growth led by the Tubi AVOD service and the impact of additional MLB postseason games, partially offset by lower political advertising revenues and lower ratings.
Content and other revenues (14% of total revenues) remained essentially unchanged year over year at $725 million.
Cable Network Programming revenues (43.9% of total revenues) increased 5% year over year to $2.28 billion. Advertising revenues grew 7%, whereas revenues from Distribution rose 5% year over year. Content and other revenues increased 4% on a year-over-year basis.
Television revenues (56.7% of total revenues) declined 1% from the year-ago quarter's figure to $2.94 billion. Advertising revenues increased 1.36% year over.
Distribution revenues grew 1% year over year, driven by higher average rates at the company's owned and operated television stations and increases in fees from third-party FOX affiliates.
Content and other revenues decreased 19% year over year to $142 million, primarily due to lower entertainment content and other revenues, which were impacted by the timing of deliveries.
Operating Details
In the second quarter of fiscal 2026, operating expenses increased 3.2% year over year to $3.9 billion. As a percentage of revenues, operating expenses expanded 90 basis points (bps) to 75.2%.
Selling, general & administrative (SG&A) expenses rose 13.3% year over year to $595 million. As a percentage of revenues, SG&A expenses expanded 120 bps to 11.5%.
Total adjusted EBITDA decreased 11.4% year over year to $692 million. Adjusted EBITDA margin contracted 190 bps to 13.4%.
Cable Network Programming EBITDA rose 5% year over year to $687 million. Television reported an adjusted EBITDA of $143 million, down 30% from the year-ago quarter.
Balance Sheet
As of Dec. 31, 2025, Fox had $2.02 billion in cash and cash equivalents compared with $4.37 billion as of Sept. 30, 2025.
As of Dec. 31, 2025, Fox's total borrowings stood at $6.6 billion, unchanged from $6.6 billion as of Sept 30, 2025.
Image: Shutterstock
FOXA Q2 Earnings Surpass Estimates, Revenues Increase Y/Y
Key Takeaways
Fox Corporation (FOXA - Free Report) reported second-quarter fiscal 2026 adjusted earnings of 82 cents per share, which beat the Zacks Consensus Estimate by 74.47%. The figure decreased 14.6% year over year.
Revenues increased 2% year over year to $5.18 billion, surpassing the consensus mark by 2.47%.
Distribution revenues (38.6% of total revenues) increased 4% year over year to $2 billion, driven by 5% growth at the Cable Network Programming segment and 1% growth at the Television segment.
Advertising revenues (47.4% of total revenues) increased 1% year over year to $2.46 billion, primarily fueled by higher sports and news pricing, continued digital growth led by the Tubi AVOD service and the impact of additional MLB postseason games, partially offset by lower political advertising revenues and lower ratings.
Content and other revenues (14% of total revenues) remained essentially unchanged year over year at $725 million.
Fox Corporation Price, Consensus and EPS Surprise
Fox Corporation price-consensus-eps-surprise-chart | Fox Corporation Quote
Top-Line Details
Cable Network Programming revenues (43.9% of total revenues) increased 5% year over year to $2.28 billion. Advertising revenues grew 7%, whereas revenues from Distribution rose 5% year over year. Content and other revenues increased 4% on a year-over-year basis.
Television revenues (56.7% of total revenues) declined 1% from the year-ago quarter's figure to $2.94 billion. Advertising revenues increased 1.36% year over.
Distribution revenues grew 1% year over year, driven by higher average rates at the company's owned and operated television stations and increases in fees from third-party FOX affiliates.
Content and other revenues decreased 19% year over year to $142 million, primarily due to lower entertainment content and other revenues, which were impacted by the timing of deliveries.
Operating Details
In the second quarter of fiscal 2026, operating expenses increased 3.2% year over year to $3.9 billion. As a percentage of revenues, operating expenses expanded 90 basis points (bps) to 75.2%.
Selling, general & administrative (SG&A) expenses rose 13.3% year over year to $595 million. As a percentage of revenues, SG&A expenses expanded 120 bps to 11.5%.
Total adjusted EBITDA decreased 11.4% year over year to $692 million. Adjusted EBITDA margin contracted 190 bps to 13.4%.
Cable Network Programming EBITDA rose 5% year over year to $687 million. Television reported an adjusted EBITDA of $143 million, down 30% from the year-ago quarter.
Balance Sheet
As of Dec. 31, 2025, Fox had $2.02 billion in cash and cash equivalents compared with $4.37 billion as of Sept. 30, 2025.
As of Dec. 31, 2025, Fox's total borrowings stood at $6.6 billion, unchanged from $6.6 billion as of Sept 30, 2025.
Zacks Rank & Other Stocks to Consider
FOXA currently carries a Zacks Rank #2 (Buy).
Peloton Interactive (PTON - Free Report) , Ralph Lauren (RL - Free Report) and Sharp (SHCAY - Free Report) are some other top-ranked stocks that investors can consider in the broader Consumer Discretionary sector.
Peloton Interactive, Ralph Lauren and Sharp carry a Zacks Rank #2 each at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Peloton Interactive and Ralph Lauren are set to report their upcoming results on Feb. 5.Sharp is set to report its upcoming results on Feb. 6.