FOXA Q3 2026 Earnings Call Summary

Fox Corporation Q3 Fiscal Year 2026 Earnings Call Summary

1. Key Financial Results and Metrics

Total Revenue: $4 billion
Adjusted EBITDA: $954 million, up 11% year-over-year, marking a record for Q3.
Distribution Revenue: Grew 3%, with Cable segment growth at 5%.
Advertising Revenue: Declined 24% due to the absence of Super Bowl LIX; however, excluding this impact, advertising revenue would have grown in 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 ($1.32 per share), up 20% from $1.10.
Free Cash Flow: $1.77 billion for the quarter.
Share Buyback: $1.95 billion repurchased year-to-date, totaling over $8.5 billion since 2019.

2. Strategic Updates and Business Highlights

Fox One: Early success with new subscriber additions and retention exceeding expectations.
FOX News: Achieved its highest Q3 advertising revenue ever, becoming the most-watched cable network.
FOX Sports: Strong ratings for events like the World Baseball Classic and NFL games, with the acquisition of additional NFL game rights.
Tubi: Revenue grew 23%, with a 19% increase in total view time, indicating strong engagement.
New Programming: Successful mid-season slate and upcoming shows announced during the upfront presentation.

3. Forward Guidance and Outlook

Anticipation of a healthy upfront advertising market, with strong demand expected across various categories, including pharmaceuticals and tech.
The upcoming FIFA Men's World Cup is expected to enhance revenue and engagement across platforms, including Tubi.
Continued focus on maximizing shareholder value through disciplined capital allocation and strategic investments.

4. Bad News, Challenges, or Points of Concern

Advertising Revenue Decline: The significant drop due to the absence of the Super Bowl raises concerns about reliance on major events for revenue.
Subscriber Declines: While Fox One shows promise, traditional pay TV subscriber declines remain a challenge, albeit stabilizing below 6.5%.
Competitive Pressures: Concerns about NFL games moving to streaming services and the potential impact on traditional broadcasting.

5. Notable Q&A Insights

NFL Agreement: Two additional regular season games acquired, with no current tension with the NFL; discussions about extending the agreement are speculative.
Cable Network Distribution: Confidence in mid-single-digit growth potential, bolstered by Fox One's performance and stabilization of subscriber declines.
Advertising Trends: Strong performance across national and local advertising, with expectations of significant political ad revenue in the upcoming midterm elections.
Digital Investments: Focus on Tubi and Fox One, with a cautious approach to spending; Tubi has been breakeven for three consecutive quarters.

Overall, Fox Corporation reported strong financial results driven by strategic initiatives in news, sports, and digital platforms, while navigating challenges in advertising and traditional cable distribution.

FOXA — Fox Corporation