Fox Corporation

(NASDAQ Global Select)
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Somewhat Bullish +50

FOX REPORTS THIRD QUARTER FISCAL 2026 REVENUE OF $3.99 BILLION, NET INCOME OF $175 MILLION, AND ADJUSTED EBITDA OF $954 MILLION

AI-generated analysis

πŸ“Š Fox Corporation reported Q3 fiscal 2026 revenue of $3.99 billion, down from $4.37 billion the prior year, due mainly to the absence of Super Bowl LIX.

πŸ’° Net income totaled $175 million for the quarter compared to $354 million last year, though adjusted net income per share rose to $1.32 from $1.10.

πŸ“‰ Advertising revenue declined significantly to $1.56 billion versus $2.04 billion previously, largely driven by no Super Bowl broadcast but partially aided by additional NFL games and Tubi growth.

πŸ†™ Distribution revenue grew 3% quarter-over-quarter with Cable Network Programming segment distribution up 5% despite net subscriber declines being offset by contractual price increases.

🎬 Content and other revenue jumped 12% to $696 million, primarily fueled by higher sports sublicensing revenue across segments.

⚑ Adjusted EBITDA reached $954 million, an 11% increase from the prior year quarter, as lower expenses offset revenue drops, especially due to reduced Super Bowl costs.

πŸ“Ί Cable Network Programming segment revenue was $1.74 billion, up 6%, while Television segment revenue fell to $2.20 billion, down 19%.

πŸ›’ EBITDA for Cable Network Programming rose slightly by 1% to $884 million, whereas Television segment EBITDA surged 68% to $191 million due to cost savings.

🌐 Executive Chair Lachlan Murdoch highlighted continued strength in core advertising and streaming service Tubi, while mentioning upcoming FIFA Men's World Cup coverage.

πŸ“‰ Class A and Class B common stock share repurchases totaled about $100 million during the quarter with $3.5 billion remaining under authorization.

πŸ† Sports sublicensing revenue was a key growth driver for content income, benefiting from various events including the World Baseball Classic and NFL games.

πŸ“Ί Tubi AVOD service contributed to digital growth within advertising revenue, partially mitigating the impact of Super Bowl LIX not airing in the current year.

⚠️ Management noted that expenses decreased primarily due to lower sports programming rights amortization and production costs following the omission of Super Bowl LIX.

Full Analysis
Fox Corporation reported its financial results for the third quarter of fiscal 2026, covering the period ended March 31, 2026, with total revenue reaching $3.99 billion compared to $4.37 billion in the prior year's quarter. The decline in overall revenue was driven primarily by significantly lower advertising income of $1.56 billion versus $2.04 billion last year, largely due to the absence of Super Bowl LIX, though this was partially offset by digital growth from its Tubi streaming service and an additional NFL Wild Card game. Net income fell to $175 million from $354 million in the previous year, while adjusted net income attributed to stockholders remained strong at $570 million per quarter ($1.32 per share), exceeding the prior year's $507 million. Adjusted EBITDA increased 11% to $954 million as lower expenses, specifically reduced sports programming rights amortization and production costs from not broadcasting the Super Bowl, outweighed the revenue drop. Segment performance showed Cable Network Programming revenue rising 6% to $1.74 billion due to price increases and higher news pricing, despite a slight decline in subscribers, while Television segment revenue dropped 19% to $2.20 billion. The Television segment saw its EBITDA surge by $131 million to $191 million, primarily because lower rights amortization and production costs were not fully offset by the Super Bowl absence but benefited from continued Tubi growth. Management highlighted robust core advertising trends and strong performance in live programming as key drivers, with CEO Lachlan Murdoch emphasizing leadership in the sector and the upcoming FIFA Men's World Cup events in North America scheduled for June and July. The company also provided details on its share repurchase activity, noting that through March 31, 2026, it had cumulatively repurchased approximately $6.7 billion of Class A common stock and $1.8 billion of Class B common stock, with an authorized remaining budget of $3.5 billion. During the specific quarter under review, the company executed repurchases totaling $50 million for each class of stock. These results underscore a strategic focus on balancing cost efficiencies against major event losses to maintain long-term shareholder value and support continued investment in its digital platforms and live sports portfolio.