Key Highlights
- Fox delivered Q1 CY2026 revenue of $3.99 billion, representing an 8.6% year-over-year decline but exceeding analyst projections by 4.7%
- Adjusted earnings per share reached $1.32, demolishing the consensus forecast of $0.97 by 36.4%
- Adjusted EBITDA totaled $954 million, surpassing Wall Street’s expectation of $741.9 million by 28.6%
- Operating margin expanded to 23.9%, climbing from 17.4% during the comparable period last year
- FOXA shares rallied 4.3% to $65.64 in immediate post-earnings trading
Fox Corporation delivered first-quarter CY2026 financial results that exceeded Wall Street expectations across nearly every key performance indicator. Shares surged 4.3% to $65.64 in the immediate aftermath of the earnings release.
The media giant reported quarterly revenue of $3.99 billion, topping analyst estimates of $3.81 billion by 4.7%. However, the top line still reflected an 8.6% year-over-year contraction compared to the prior-year quarter.
The more compelling narrative emerged on the profitability front. Adjusted earnings per share registered at $1.32, significantly outpacing the Street’s consensus of $0.97 — representing a substantial 36.4% upside surprise.
Adjusted EBITDA reached $954 million compared to analyst expectations of $741.9 million, delivering a 28.6% beat. This represents a considerable margin outperformance by any standard.
The company’s operating margin for the quarter expanded to 23.9%, marking a 6.5 percentage point increase from the 17.4% recorded in the prior-year first quarter. This margin expansion is particularly impressive considering the revenue decline — Fox achieved this through disciplined expense management.
Revenue Streams: Advertising and Affiliate Fees
Fox generates revenue through two primary channels: Advertising, contributing 39% of total revenue, and Affiliate fees (encompassing licensing and retransmission agreements), which represent 52.8% of the revenue mix.
Looking at the trailing two-year period, Advertising revenue has demonstrated robust momentum with an average 14% year-over-year expansion. Meanwhile, Affiliate revenue has remained relatively stagnant during this timeframe.
Robust advertising momentum from sports broadcasting and news content powered the quarterly outperformance. Additionally, Tubi, the company’s advertising-supported streaming platform, bolstered investor confidence in the stock.
Profitability Metrics and Forward Guidance
Adjusted earnings per share of $1.32 marked an increase from $1.10 reported in the corresponding quarter of the previous year, demonstrating meaningful year-over-year progression.
Examining the five-year period, Fox’s EPS has expanded at a compound annual growth rate of 11.6%. This profitability growth has outstripped the company’s revenue expansion over the identical timeframe.
Analyst consensus now anticipates full-year EPS of $4.92, implying 11% earnings growth over the coming twelve months.
Regarding revenue expectations, the Street projects 5.5% top-line growth over the next year. This represents a modest deceleration relative to the 7.9% annualized revenue growth Fox has achieved over the preceding two years.
Free cash flow margin remained stable at 44.2%, approximately matching the level achieved in the year-ago quarter.
Despite the strong quarterly results, Fox’s year-to-date stock performance remains negative at -12.36% entering this earnings report. The company’s market capitalization currently stands at $25.35 billion.
In the wake of these better-than-anticipated results, Wall Street analysts are likely to revise their price targets upward to account for the company’s operational outperformance.
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