Key Highlights
- Fox Corporation reported Q1 CY2026 revenue of $3.99 billion, declining 8.6% year over year but surpassing forecasts by 4.7%
- Adjusted earnings per share of $1.32 crushed analyst projections of $0.97 by 36.4%
- Adjusted EBITDA reached $954 million, exceeding Wall Street’s $741.9 million projection by 28.6%
- Operating margin expanded to 23.9%, climbing from 17.4% in the prior-year period
- FOXA shares surged 4.3% to $65.64 in immediate post-earnings trading
Fox Corporation delivered first-quarter CY2026 financial results that exceeded Wall Street projections across virtually all key performance indicators. Shares jumped 4.3% to $65.64 in the immediate aftermath of the earnings announcement.
The media giant reported quarterly revenue of $3.99 billion, topping analyst consensus of $3.81 billion by 4.7%. However, top-line results still reflected an 8.6% decline from the comparable quarter in the previous year.
The real surprise emerged on the bottom line. Adjusted earnings per share reached $1.32, significantly exceeding the $0.97 consensus forecast — representing a 36.4% upside surprise.
Adjusted EBITDA totaled $954 million compared to Wall Street’s expectation of $741.9 million, delivering a substantial 28.6% beat. This represents a considerable outperformance by conventional standards.
The company’s operating margin for the quarter expanded to 23.9%, marking a 6.5 percentage point improvement from the 17.4% recorded in the year-ago quarter. This margin expansion is particularly impressive considering the simultaneous revenue decline — Fox achieved this through disciplined expense management.
Revenue Composition: Advertising and Affiliate Streams
Fox generates revenue primarily through two channels: Advertising, contributing 39% of total revenue, and Affiliate fees (encompassing licensing and retransmission agreements), which represent 52.8% of the mix.
Looking at the two-year trend, Advertising revenue has demonstrated robust performance with an average year-over-year growth rate of 14%. Meanwhile, Affiliate revenue has remained essentially stagnant during this timeframe.
This quarter’s outperformance was fueled by robust advertising demand tied to sports and news content. Additionally, Tubi, the company’s ad-supported streaming platform, played a role in boosting investor confidence in the stock.
Profitability Metrics and Forward Guidance
The adjusted EPS figure of $1.32 represented growth from the $1.10 reported in the corresponding quarter last year, marking meaningful year-over-year progression.
Analyzing the five-year trajectory, Fox’s earnings per share have expanded at a compound annual growth rate of 11.6%. This earnings growth has notably outstripped revenue growth during the same timeframe.
Looking ahead, Wall Street analysts are now forecasting full-year EPS of $4.92, which would translate to 11% growth over the coming 12-month period.
On the top-line front, consensus estimates call for 5.5% revenue growth over the next year. This projection represents a modest deceleration compared to the 7.9% annualized revenue growth Fox has achieved over the past two years.
The company’s free cash flow margin remained stable at 44.2%, approximately matching the level from the same quarter in the prior year.
Despite the positive quarterly results, Fox’s stock price remains down 12.36% year-to-date 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 update their price targets to incorporate the company’s stronger operational performance.
