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FOXA Q1 Earnings & Revenues Surpass Estimates, Both Increase Y/Y
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Key Takeaways
Fox's Q1 adjusted EPS jumped 68.2% to $2.54, while revenues rose 22.3% to $4.57 billion, topping estimates.
Fox's advertising revenues climbed 47.4% on World Cup broadcasts, political ad spending and Tubi growth.
Fox's Television EBITDA surged 134.1% to $934 million as revenues rose 32.3% and EBITDA margins expanded.
Fox Corporation (FOXA - Free Report) reported adjusted earnings of $2.54 per share for the first quarter of fiscal 2027, up 68.2% year over year. The figure topped the Zacks Consensus Estimate of $1.99 by 27.64%, supported by World Cup broadcasts and higher political advertising.
Revenues climbed 22.3% year over year to $4.57 billion, surpassing the $4.23 billion Zacks Consensus Estimate by 8.01%. Companywide advertising revenues rose 47.4%, with Tubi's digital growth adding to demand from sports and election-related programming.
FOXA's Revenue Mix Shifts Toward Advertising
Distribution revenues increased 8.8% year over year to $2.08 billion from $1.92 billion. They accounted for 45.6% of total revenues, down from 51.2% a year earlier as advertising became a larger contributor to the sales mix.
Advertising brought in $2.08 billion, representing 45.5% of total revenues against 37.8% a year ago. Content and other revenues fell 1.2% to $406 million from $411 million, contributing 8.9% of consolidated sales.
Cable Network Programming revenues grew 8.5% to $1.80 billion from $1.66 billion in the year-ago quarter. Distribution sales climbed 10.1% to $1.20 billion, reflecting contractual price increases and a rise in the average number of subscribers.
Advertising revenues rose 8.1% to $373 million, driven by sports advertising related to the World Cup, partly offset by weaker digital news advertising. Content and other revenues advanced 1.3% to $230 million. Cable segment EBITDA improved 7.4% to $859 million, although higher sports rights amortization, production expenses and news programming costs tempered profit growth. The segment's EBITDA margin edged down to 47.6% from 48.1%.
FOXA's Television Segment Powers Q1
Television revenues climbed 32.3% year over year to $2.71 billion from $2.05 billion. Advertising revenues reached $1.71 billion, up 60.1%, benefiting from World Cup broadcasts, political ad spending and continued digital growth led by Tubi.
Television distribution revenues grew 3.5% to $850 million, supported by higher average rates at owned-and-operated stations and increased subscriber counts. Content and other revenues declined 4.3% to $155 million due to lower entertainment content revenues. Segment EBITDA surged 134.1% to $934 million despite elevated sports rights and digital content costs. Lower NFL expenses tied to the timing of games provided a partial offset. The segment's EBITDA margin expanded to 34.4% from 19.5%.
Fox's Operating Costs Trail Sales Growth
Operating expenses rose 11.4% year over year to $2.36 billion, reflecting higher sports programming rights amortization and production costs alongside increased digital content spending. However, operating expenses as a percentage of revenues declined to 51.7% from 56.7% in the prior-year quarter.
Selling, general and administrative expenses grew 2.7% to $567 million, while their share of revenues contracted to 12.4% from 14.8%. Total adjusted EBITDA increased 54.1% to $1.64 billion, lifting the adjusted EBITDA margin to 35.9% from 28.5%.
GAAP net income rose 57.1% to $957 million. Net income attributable to stockholders increased to $943 million from $599 million, while GAAP earnings per share rose to $2.20 from $1.32. Adjusted net income attributable to stockholders totaled $1.09 billion, compared with $686 million a year ago.
FOXA's Operating Cash Flow Turns Positive
Operating activities generated $616 million in cash, reversing a $130 million outflow a year earlier. Changes in inventories net of programming payable used $567 million of cash, compared with $525 million in the prior-year period. Changes in receivables and other assets used another $192 million, versus $437 million a year ago.
Property and equipment spending totaled $113 million versus $104 million a year earlier. Net cash used in investing activities narrowed to $139 million from $255 million, while cash used in financing activities fell to $146 million from $598 million. Fox made no share repurchases during the quarter compared with $250 million in the year-ago period.
Fox's Liquidity and Management Commentary
As of Sept. 30, 2026, cash and cash equivalents totaled $4.54 billion, up from $4.21 billion at June 30. Borrowings were $6.61 billion, essentially unchanged from fiscal year-end. Total assets rose to $23.09 billion from $22.48 billion, while stockholders' equity increased to $12.47 billion from $11.63 billion.
Chief executive officer Lachlan Murdoch highlighted first-quarter records for revenues and adjusted EBITDA. He cited the kickoff of college football and NFL seasons and pointed to contributions from across the company's businesses. Murdoch also emphasized ongoing momentum and a thoughtful, disciplined approach to delivering shareholder value.
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FOXA Q1 Earnings & Revenues Surpass Estimates, Both Increase Y/Y
Key Takeaways
Fox Corporation (FOXA - Free Report) reported adjusted earnings of $2.54 per share for the first quarter of fiscal 2027, up 68.2% year over year. The figure topped the Zacks Consensus Estimate of $1.99 by 27.64%, supported by World Cup broadcasts and higher political advertising.
Revenues climbed 22.3% year over year to $4.57 billion, surpassing the $4.23 billion Zacks Consensus Estimate by 8.01%. Companywide advertising revenues rose 47.4%, with Tubi's digital growth adding to demand from sports and election-related programming.
FOXA's Revenue Mix Shifts Toward Advertising
Distribution revenues increased 8.8% year over year to $2.08 billion from $1.92 billion. They accounted for 45.6% of total revenues, down from 51.2% a year earlier as advertising became a larger contributor to the sales mix.
Advertising brought in $2.08 billion, representing 45.5% of total revenues against 37.8% a year ago. Content and other revenues fell 1.2% to $406 million from $411 million, contributing 8.9% of consolidated sales.
Fox Corporation Price, Consensus and EPS Surprise
Fox Corporation price-consensus-eps-surprise-chart | Fox Corporation Quote
Fox's Cable Networks Post Higher Revenues
Cable Network Programming revenues grew 8.5% to $1.80 billion from $1.66 billion in the year-ago quarter. Distribution sales climbed 10.1% to $1.20 billion, reflecting contractual price increases and a rise in the average number of subscribers.
Advertising revenues rose 8.1% to $373 million, driven by sports advertising related to the World Cup, partly offset by weaker digital news advertising. Content and other revenues advanced 1.3% to $230 million. Cable segment EBITDA improved 7.4% to $859 million, although higher sports rights amortization, production expenses and news programming costs tempered profit growth. The segment's EBITDA margin edged down to 47.6% from 48.1%.
FOXA's Television Segment Powers Q1
Television revenues climbed 32.3% year over year to $2.71 billion from $2.05 billion. Advertising revenues reached $1.71 billion, up 60.1%, benefiting from World Cup broadcasts, political ad spending and continued digital growth led by Tubi.
Television distribution revenues grew 3.5% to $850 million, supported by higher average rates at owned-and-operated stations and increased subscriber counts. Content and other revenues declined 4.3% to $155 million due to lower entertainment content revenues. Segment EBITDA surged 134.1% to $934 million despite elevated sports rights and digital content costs. Lower NFL expenses tied to the timing of games provided a partial offset. The segment's EBITDA margin expanded to 34.4% from 19.5%.
Fox's Operating Costs Trail Sales Growth
Operating expenses rose 11.4% year over year to $2.36 billion, reflecting higher sports programming rights amortization and production costs alongside increased digital content spending. However, operating expenses as a percentage of revenues declined to 51.7% from 56.7% in the prior-year quarter.
Selling, general and administrative expenses grew 2.7% to $567 million, while their share of revenues contracted to 12.4% from 14.8%. Total adjusted EBITDA increased 54.1% to $1.64 billion, lifting the adjusted EBITDA margin to 35.9% from 28.5%.
GAAP net income rose 57.1% to $957 million. Net income attributable to stockholders increased to $943 million from $599 million, while GAAP earnings per share rose to $2.20 from $1.32. Adjusted net income attributable to stockholders totaled $1.09 billion, compared with $686 million a year ago.
FOXA's Operating Cash Flow Turns Positive
Operating activities generated $616 million in cash, reversing a $130 million outflow a year earlier. Changes in inventories net of programming payable used $567 million of cash, compared with $525 million in the prior-year period. Changes in receivables and other assets used another $192 million, versus $437 million a year ago.
Property and equipment spending totaled $113 million versus $104 million a year earlier. Net cash used in investing activities narrowed to $139 million from $255 million, while cash used in financing activities fell to $146 million from $598 million. Fox made no share repurchases during the quarter compared with $250 million in the year-ago period.
Fox's Liquidity and Management Commentary
As of Sept. 30, 2026, cash and cash equivalents totaled $4.54 billion, up from $4.21 billion at June 30. Borrowings were $6.61 billion, essentially unchanged from fiscal year-end. Total assets rose to $23.09 billion from $22.48 billion, while stockholders' equity increased to $12.47 billion from $11.63 billion.
Chief executive officer Lachlan Murdoch highlighted first-quarter records for revenues and adjusted EBITDA. He cited the kickoff of college football and NFL seasons and pointed to contributions from across the company's businesses. Murdoch also emphasized ongoing momentum and a thoughtful, disciplined approach to delivering shareholder value.
FOXA’s Zacks Rank & Other Stocks to Consider
FOXA currently carries a Zacks Rank #2 (Buy).
Camtek (CAMT - Free Report) , Fastly (FSLY - Free Report) and Microchip (MCHP - Free Report) are among the better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector. Currently, Camtek, Fastly and Microchip carry a Zacks Rank #2 each. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Camtek’s shares have returned 9.7% year to date. CAMT is scheduled to report its third-quarter 2026 results on Nov. 4.
Fastly’s shares have surged 127% year to date. FSLY is slated to report its third-quarter 2026 results on Nov. 4.
Microchip’s shares have gained 21.4% year to date. MCHP is scheduled to report its fiscal second-quarter 2027 results on Nov. 5, 2026.