Fox Corporation

(NASDAQ Global Select)
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Bullish +55

How Did Fox Stock Leave Its Industry Behind?

Acquisition AI-generated analysis

πŸ“ˆ Fox stock rose 72.8% over five years, vastly outperforming the median broadcasting peer which lost 72.0%.

πŸ’° Revenue grew an average of 5.1% annually for three years, driven by record advertising and distribution revenue in the Television segment.

πŸ“‰ Net income fell 21.6% between fiscal 2021 and 2026 as earnings per share growth was offset by a more than 25% reduction in diluted share count.

πŸ“Š Valuation multiple expanded from 10.8x to 16.0x earnings, accounting for the majority of the stock's price appreciation.

🌍 Management expects fiscal 2027 to benefit from a healthy advertising market and strong World Cup viewership in Q1.

πŸ’Ό Fox is acquiring Roku for approximately $22 billion including debt, with shareholder approval received on October 14, 2026.

πŸ“… The proposed Roku acquisition is expected to close in the first half of fiscal 2027.

πŸ“Ί Television segment generated 56.4% of total sales for fiscal 2026, remaining the primary revenue source.

Bullish Signals
  • Fox stock significantly outperformed all 13 other broadcasting peers over five years, rising 72.8% while the industry median fell 72.0%.
  • Revenue grew an average of 5.1% annually over the past three years compared to a 1.0% decline for typical broadcasters.
  • Management reported record advertising and distribution revenue driving fiscal 2026 sales growth.
  • The company secured shareholder approval on October 14, 2026, for a $22 billion acquisition of Roku to expand its streaming capabilities.
  • Fiscal 2027 is expected to benefit from historically strong upfront ad sales and World Cup viewership.
Risk Factors
  • Net income declined 21.6% between fiscal 2021 and 2026, indicating underlying earnings pressure despite revenue growth.
  • The company is undertaking a massive $22 billion acquisition of Roku including debt, which presents significant integration and financial leverage risks.
Full Analysis
For the five-year period ending October 29, 2026, Fox Corporation (FOXA) significantly outperformed its industry peers, rising 72.8% while the median broadcasting company fell 72.0%. This strong stock performance was driven primarily by a multiple expansion from 10.8x earnings in 2021 to 16.0x today, rather than substantial growth in profit per share, which increased only 6.7% despite revenue growing 32.7% over the same timeframe. Fox's business fundamentals showed resilience with revenue expanding at an average of 5.1% annually over the past three years compared to a 1.0% decline for typical broadcasters. The Television segment remains the core driver, accounting for 56.4% of fiscal 2026 sales, supported by record advertising and distribution revenue. However, net income declined 21.6% between fiscal 2021 and 2026 as share count reductions offset earnings growth. Looking ahead, management highlighted a healthy advertising market carrying into fiscal 2027 with historically strong upfront sales and anticipated World Cup benefits for the first quarter. The company is also executing a major strategic shift by acquiring Roku for approximately $22 billion, including debt, a deal approved by shareholders in October 2026 expected to close in the first half of 2027.