Fox Corporation FOXA used its fourth-quarter fiscal 2026 call to emphasize sustained advertising demand and improving digital economics, while management expects the remaining World Cup benefit and the midterm political cycle to support fiscal 2027.
Management said Tubi and FOX One are running ahead of expectations. Adjusted EPS of $1.79 topped the Zacks Consensus Estimate of $1.34, while revenues of $4.21 billion exceeded the $3.6 billion consensus.
FOXA Sees Ad Strength Carry Into Fiscal 2027
Executive chairman and CEO Lachlan Murdoch said FOX completed one of its strongest upfronts, with double-digit volume growth across sports, news and Tubi. Eight of the 10 advertising categories it tracks increased.
Murdoch said that the strength carried into fiscal 2027. He expects a record midterm political advertising cycle for FOX, compared with more than $260 million of revenue in the prior midterm cycle.
Chief financial officer Steve Tomsic expects both cable and television to contribute to distribution revenue growth in fiscal 2027, alongside further bottom-line improvement from the digital portfolio.
Fox One and Tubi Run Ahead of Plan
Murdoch said Tubi posted 35% fourth-quarter revenue growth and a 17% increase in viewing time, ending fiscal 2026 with 110 million monthly active users. Its World Cup Hub attracted more than 20 million viewers.
A Goldman Sachs analyst asked how much the World Cup drove Tubi. Murdoch said tournament revenues were important but relatively small compared with Tubi’s overall growth, with momentum continuing into fiscal 2027.
Murdoch said FOX One subscribers have been incremental to traditional pay TV and churn remains below expectations. Tomsic said digital investment fell below $200 million in fiscal 2026 from just under $300 million in fiscal 2025.
FOXA Uses World Cup to Showcase Platform Reach
Murdoch framed the World Cup as proof of FOX’s ability to deploy its stations, sports, news, Tubi, FOX One and digital properties around a major live event.
The tournament lifted advertising while increasing sports rights amortization and production costs. Television segment EBITDA rose 129% year over year, while Cable Network Programming EBITDA declined 3%.
A Guggenheim analyst asked how that momentum could extend beyond the tournament. Murdoch emphasized FOX’s marketing, reach and production capabilities as part of the value it can offer sports leagues.
Fox Holds NFL Terms Steady Through 2029
A UBS analyst asked whether NFL rights pricing could change before 2030. Murdoch said FOX will not amend its existing contractual relationship, which runs through completion of the 2029 season.
A JPMorgan analyst later asked about the timing of league discussions and FOX’s broader rights strategy. Murdoch said talks about extensions beyond the current term would occur closer to the agreement’s end.
Murdoch also pointed to FOX’s recent acquisition of NFL rights in Mexico and reiterated that the company has a positive relationship with the league.
FOXA Keeps Buybacks in Place Around Roku Deal
Murdoch said the pending Roku acquisition remains on track to close in the first half of calendar 2027. He described it as an expansion of FOX’s connected-TV distribution, advertising and subscription capabilities.
Tomsic said FOX expects to close the deal at about 2.8 times net leverage. He also said the share repurchase program should continue through the transaction’s pendency and beyond.
FOX ended the quarter with about $4.2 billion of cash and $6.6 billion of debt. The board raised the semiannual dividend to 29 cents per share, with $3.4 billion remaining under the repurchase authorization.
Fox Enters Fiscal 2027 With Focused Priorities
Murdoch’s message centered on sustaining advertising demand, expanding digital distribution with limited pay-TV cannibalization and using premium live content to reinforce FOX’s reach with viewers, advertisers and distributors.
Tomsic emphasized improving digital economics, distribution growth across both operating segments and continued capital returns while the Roku transaction remains pending.
FOXA Rank and Style Scores Show a Mixed Setup
FOXA carries a Zacks Rank #3 (Hold), with a Value Score of B, Growth Score of D, Momentum Score of C and VGM Score of C. Value is the strongest of the four indicators, while Growth is the weakest.
Zacks Style Scores complement the Zacks Rank, with A and B grades preferred to lower scores. FOXA’s combination does not match the framework’s preferred pairing of a Zacks Rank #1 (Strong Buy) or #2 (Buy) with A or B Style Scores. The Zacks Rank can change as earnings estimates are revised after the latest results. You can see the complete list of today’s Zacks #1 Rank stocks here.
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Fox Corporation (FOXA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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