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 shares climbed 72.8% over five years, vastly outperforming the median broadcasting company which lost 72.0%.

πŸ’° Revenue grew an average of 5.1% annually over the past three years, driven by record advertising and distribution revenue.

πŸ“‰ Net income fell 21.6% between fiscal 2021 and 2026, with EPS growth largely due to a reduction in diluted share count.

🏦 Investors pay a 16.0 times earnings multiple for Fox, up from 10.8 times in 2021, driving much of the stock's rise.

🌍 Management expects the World Cup to boost Fox's first quarter of fiscal 2027 following strong upfront sales.

πŸ’Ό Fox agreed to acquire Roku for approximately $22 billion including debt, with closing expected in early 2027.

πŸ“Ί The Television segment generated 56.4% of total sales during fiscal 2026.

πŸ† Fox beat about three-quarters of comparable broadcasters over the trailing year to October 29, 2026.

Bullish Signals
  • Fox shares rose 72.8% over five years, outperforming all 13 other companies in the Broadcasting industry where the median company fell 72.0%.
  • Revenue grew an average of 5.1% annually over the past three years compared to a 1.0% yearly decline for the typical broadcaster.
  • Management reported record advertising and distribution revenue driving fiscal 2026 growth, with strong upfront sales in company history.
  • The World Cup is expected to help Fox's first quarter of fiscal 2027 following healthy advertising market conditions.
  • Fox beat about three-quarters of comparable broadcasters over the trailing year, maintaining its status as an industry leader.
Risk Factors
  • Net income fell 21.6% between fiscal 2021 and fiscal 2026 despite revenue growth.
  • Earnings per share climbed only 6.7% over the same period, with growth driven primarily by a reduction in diluted share count rather than profit expansion.
  • The stock's significant rise was driven largely by an increase in valuation multiple from 10.8x to 16.0x earnings rather than fundamental profit per share growth.
  • Over the trailing year, Fox beat about three-quarters of peers, a narrower margin compared to beating all peers over the five-year stretch.
Full Analysis
Over a 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 an expansion in valuation multiples rather than proportional growth in earnings per share, as investors paid a higher multiple for the stock compared to historical levels and sector averages. Fundamentally, Fox expanded its revenue base with an average annual growth of 5.1% over the past three years, contrasting sharply with the industry's decline. The Television segment remains the primary revenue driver, accounting for 56.4% of fiscal 2026 sales, supported by record advertising and distribution revenue. However, net income decreased 21.6% between fiscal 2021 and 2026, with earnings per share growth largely attributed to a reduction in the diluted share count. Management indicated that strong advertising conditions from fiscal 2026 would carry into fiscal 2027, citing record upfront sales and anticipated benefits from the World Cup. In a major strategic move, Fox agreed to acquire streaming platform Roku for approximately $22 billion, including debt, with the deal expected to close in the first half of 2027 following shareholder approval. Recent performance metrics show Fox beating about three-quarters of comparable broadcasters over the trailing year, though this margin has narrowed from its five-year dominance. The company's future outlook relies on sustaining revenue growth against a year earlier during fiscal Q1 2027 results expected in November 2026 and successfully integrating the Roku acquisition to maintain its competitive edge.