Key Takeaways
- Fox Corporation reported Q1 CY2026 revenue of $3.99 billion, representing an 8.6% year-over-year decline while exceeding forecasts by 4.7%
- Adjusted earnings per share reached $1.32, surpassing analyst projections of $0.97 by 36.4%
- Adjusted EBITDA totaled $954 million, outperforming Wall Street’s $741.9 million forecast by 28.6%
- Operating margin expanded to 23.9%, climbing from 17.4% during the comparable quarter last year
- FOXA shares gained 4.3% to reach $65.64 following the earnings announcement
Fox Corporation delivered Q1 CY2026 financial results that exceeded Wall Street projections across nearly all key performance indicators. Shares advanced 4.3% to $65.64 in immediate trading following the release.
Quarterly revenue reached $3.99 billion, surpassing analyst forecasts of $3.81 billion by 4.7%. However, this figure reflected an 8.6% decrease compared to the corresponding period in the prior year.
The company’s profitability metrics delivered the most impressive performance. Adjusted earnings per share reached $1.32, significantly exceeding the consensus forecast of $0.97 by 36.4%.
Adjusted EBITDA totaled $954 million compared to analyst expectations of $741.9 million, representing a substantial 28.6% outperformance. This margin of outperformance stands as particularly significant.
The quarter’s operating margin reached 23.9%, expanding by 6.5 percentage points from the 17.4% recorded in Q1 of the previous year. This improvement proves especially remarkable considering the concurrent revenue decline — Fox achieved this through effective cost management initiatives.
Performance Across Advertising and Affiliate Segments
Fox generates revenue through two primary channels: Advertising, contributing 39% of total revenue, and Affiliate revenue from licensing and retransmission fees, representing 52.8% of the total.
Advertising revenue has demonstrated robust performance over the past two years, averaging 14% annual growth. Affiliate revenue has maintained steady performance during the same timeframe.
Robust advertising demand stemming from sports and news programming powered this quarter’s results. Tubi, the company’s free streaming platform, also played a role in boosting investor confidence.
Profitability Metrics and Forward Guidance
Adjusted earnings per share of $1.32 represented growth from $1.10 during the same quarter of the previous year, marking a healthy year-over-year increase.
Fox’s EPS has expanded at a compound annual growth rate of 11.6% over the past five years. This profitability growth has exceeded the company’s revenue expansion during the same timeframe.
Analyst consensus currently projects full-year EPS of $4.92, implying 11% growth over the coming 12-month period.
Regarding top-line performance, analysts forecast 5.5% revenue growth over the next year. This represents a modest deceleration from the 7.9% annualized growth rate Fox achieved over the previous two years.
Free cash flow margin remained stable at 44.2%, maintaining consistency with the comparable quarter from the prior year.
Fox’s stock performance year-to-date stood at -12.36% entering this earnings report. The company maintains a market capitalization of $25.35 billion.
Following this earnings release, Wall Street analysts are anticipated to revise their price targets upward to account for the better-than-anticipated quarterly performance.
