We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
FOX Q4 Earnings Call Focuses on Ad Momentum and Digital Growth
Read MoreHide Full Article
Key Takeaways
FOX delivered double-digit volume growth across sports, news and Tubi as ad demand stayed strong.
Tubi revenues rose 35%, viewing time climbed 17% and monthly active users reached 110 million.
FOX expects World Cup and midterm benefits in fiscal 2027 while distribution revenues continue to grow.
Fox Corporation (FOX - Free Report) 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.
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.
Fox Extends Its Digital Push
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.
FOX Maps Fiscal 2027 Drivers
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%.
Fox Keeps NFL Terms Intact Through 2029
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.
FOX Preserves Capital Allocation Flexibility
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.
Fox Keeps Focus on Execution and Portfolio Reach
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.
FOX’s Zacks Rank and Style Scores Send Mixed Signals
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.
View the Zacks #1 Rank List
Image: Bigstock
FOX Q4 Earnings Call Focuses on Ad Momentum and Digital Growth
Key Takeaways
Fox Corporation (FOX - Free Report) 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 and EPS Surprise
Fox Corporation price-consensus-eps-surprise-chart | Fox Corporation Quote
FOX Carries Ad Strength Into Fiscal 2027
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.
Fox Extends Its Digital Push
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.
FOX Maps Fiscal 2027 Drivers
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%.
Fox Keeps NFL Terms Intact Through 2029
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.
FOX Preserves Capital Allocation Flexibility
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.
Fox Keeps Focus on Execution and Portfolio Reach
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.
FOX’s Zacks Rank and Style Scores Send Mixed Signals
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.