FOX Corporation Q4 2026 Earnings Call Summary

1Key Financial Results and Metrics

Fiscal Year 2026 Revenue: Grew 5% to over $17 billion.

EBITDA: Increased 8% to a record $3.9 billion.

Q4 2026 Revenue: Rose 28% to $4.2 billion.

Q4 EBITDA: Improved 27% to $1.2 billion.

Advertising Revenue: Increased 78% in Q4, driven by the FIFA Men's World Cup and Tubi's growth.

Net Income: For FY 2026, net income attributable to stockholders was $1.7 billion ($3.84 per share), down from $2.3 billion ($4.91 per share) in FY 2025.

Adjusted EPS: Increased 13% to $5.42 per share.

Free Cash Flow: Generated $726 million in Q4, impacted by timing of working capital related to the World Cup.

2Strategic Updates and Business Highlights

Launch of FOX One: A direct-to-consumer streaming service that exceeded expectations.

FIFA Men's World Cup: Broadcasted to record audiences, enhancing FOX's position in live sports.

Tubi Performance: Achieved its most streamed and highest revenue quarter ever, with a 35% revenue growth.

Pending Acquisition of Roku: Expected to close in the first half of calendar 2027, aimed at strengthening FOX's digital advertising and streaming capabilities.

FOX News: Maintained leadership in live news, with record revenue growth and significant advertiser additions.

3Forward Guidance and Outlook

Q1 FY 2027: Expected continued advertising momentum from the World Cup and the midterm elections.

Digital Investments: Anticipated to remain disciplined, with expectations for continued bottom-line improvement in digital initiatives.

Political Advertising: Forecasted to be a record cycle for midterm elections, with expectations to exceed previous revenue figures.

4Bad News, Challenges, or Points of Concern

Net Income Decline: Year-over-year decrease in net income attributable to stockholders, indicating potential profitability concerns.

Rising Expenses: Total expenses increased by 28% in Q4, driven by higher sports programming rights and production costs.

Subscriber Declines: Continued net subscriber declines of under 6.5% across third-party distributors, although mitigated by FOX One's performance.

Competitive Pressures: The CTV market remains competitive, with new inventory affecting pricing dynamics.

5Notable Q&A Insights

Ad Market Strength: Lachlan Murdoch noted strong demand across sports, news, and digital platforms, with double-digit growth in upfront ad sales.

Tubi's Success: Tubi's growth attributed to its unique position in attracting cord-cutters and high engagement metrics.

NFL Rights: No expected changes to NFL contractual terms until the 2030 season, with a strong ongoing relationship with the league.

Political Ad Revenue: Anticipated to be a record midterm cycle, with significant growth expected compared to previous cycles. Overall, FOX Corporation reported strong financial performance in FY 2026, driven by strategic initiatives in streaming and live sports, while facing challenges related to rising expenses and competitive pressures in the advertising market. The outlook for FY 2027 remains positive, bolstered by upcoming political advertising and continued growth in digital platforms.