FOX — Fox Corporation

FOX Corporation Q3 2026 Earnings Call Summary

1. Key Financial Results and Metrics

• Total Revenue: $4 billion, reflecting strong core top-line delivery.
• Adjusted EBITDA: Grew 11% to $954 million, marking a record third quarter for FOX.
• Distribution Revenue: Increased by 3%, driven by a 5% growth in the Cable segment.
• Advertising Revenue: Decreased by 24% due to the absence of Super Bowl LIX; however, excluding this impact, it would have grown by double digits.
• Net Income: $166 million ($0.38 per share), down from $346 million ($0.75 per share) in the prior year. Adjusted net income was $570 million, with adjusted EPS at $1.32, up 20% from $1.10.
• Free Cash Flow: Generated $1.77 billion for the quarter.
• Share Repurchases: $1.95 billion repurchased year-to-date, totaling over $8.5 billion since 2019.

2. Strategic Updates and Business Highlights

• FOX News: Achieved its highest third-quarter advertising revenue ever, becoming the most-watched cable network.
• Sports Programming: Successful events included the World Baseball Classic and NFL games, with FOX acquiring rights to two additional NFL games for the upcoming season.
• Tubi: Revenue grew 23%, with a 19% increase in total view time. Tubi is set to feature prominently during the FIFA Men's World Cup.
• New Programming: Introduced new shows and announced upcoming launches during the upfront presentation.

3. Forward Guidance and Outlook

• FOX anticipates continued momentum in advertising revenue, particularly with the upcoming FIFA Men's World Cup and midterm elections expected to drive political ad revenues.
• The company expects to maintain strong performance across its brands and platforms, including FOX One and Tubi.

4. Challenges and Points of Concern

• Advertising Revenue Decline: The significant drop in advertising revenue due to the absence of the Super Bowl raises concerns about reliance on major events for revenue.
• Cable Network Distribution: While distribution revenue grew, there are ongoing concerns about sustaining growth in a challenging cable environment. Subscriber declines remain a risk, although they have stabilized.
• Competitive Pressures: The shift of NFL games to streaming platforms raises questions about future negotiations and the competitive landscape.

5. Notable Q&A Insights

• NFL Agreement: FOX announced the acquisition of two additional NFL games, with no current tensions reported with the NFL, despite speculation regarding future negotiations.
• Fox One Performance: Positive trends in subscriber growth and low churn rates were highlighted, with cautious optimism about its potential to offset traditional pay TV declines.
• Advertising Trends: Strong demand across various sectors, including pharmaceuticals and tech, was noted, alongside expectations for robust political ad revenues in the upcoming midterm elections.
• Digital Investments: The company remains focused on thoughtful capital deployment, with Tubi showing improved performance and profitability metrics.

This summary encapsulates FOX Corporation's financial performance, strategic initiatives, and outlook while addressing challenges and insights from the earnings call.