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FOFOXA

Fox (FOXA) Q3 FY26 earnings call: guidance and Q&A

Earnings call· Mar 2026 (Q3 FY26)· May 11, 2026

Source: earnings call transcript

Executive summary

Fox Corporation Q3 FY26 — Record EBITDA and Strong Advertising Momentum

Fox Corporation delivered a record third quarter for adjusted EBITDA, driven by robust advertising performance across its news and sports segments, despite lapping the prior year's Super Bowl. The company's strategic digital investments, particularly in Tubi and FOX One, continue to exceed expectations, contributing to distribution revenue growth and engagement. Management remains confident in its financial position and commitment to shareholder value, with strong momentum anticipated from upcoming major sporting events and the midterm election cycle.

Highlights

5

  • Adjusted EBITDA grew 11% to $954 million, marking a record third quarter for the company.

  • Total company advertising revenue would have grown double digits excluding the Super Bowl impact, driven by strength across all segments.

  • Tubi revenue grew a healthy 23% with a 19% increase in total view time, achieving breakeven or better for the third consecutive quarter.

  • Cable distribution revenue grew 5%, benefiting from pricing gains and the early success of FOX One, with subscriber declines stable at under 6.5%.

  • FOX News achieved its highest third quarter advertising revenue ever, with CPMs up over 45% and over 500 new advertising clients across FY25 and FY26.

Concerns

2

  • Headline advertising revenue declined 24% due to the absence of last year's Super Bowl broadcast.

  • Television distribution revenue was down 1%, though expected to be flat for the full year and return to growth in fiscal '27.

Guidance & targets

CategoryTargetConfidence
Full-year fiscal 2026 Adjusted EBITDA
record EBITDA
high materiality
High
Television distribution revenue
about flat
medium materiality
High
Television distribution revenue growth
returning to growth
medium materiality
High
Midterm political ad market
$11 billion
high materiality
Medium
Net digital investments
comfortable inside the $290 million
low materiality
High
Net digital investments
not anticipating any surprises
low materiality
High

Segment performance

SegmentRevenueYoYQoQMargin
Cable
Revenue growth driven by distribution pricing gains and strength in national news advertising, partially offset by higher sports rights amortization.
Distribution revenue growth: 5%Net subscriber declines (third-party distributors): under 6.5%Advertising revenue growth: 5%Content and other revenue growth: 24%Expenses increase: 13%
—6%—$884 million
Television
Advertising revenue decline was primarily due to the absence of Super Bowl LIX, partially offset by Tubi growth and an additional NFL wild card game. Expenses fell due to lower sports programming rights amortization.
Advertising revenue decline: 30%Distribution revenue decline: 1%Content and other revenue growth: 2%Expenses decline: 24%
$2.2 billion——$191 million

Product announcements

ProductTypeDetails
FIFA Men's World Cup Hublaunch
BayWatchlaunch
The Interrogatorlaunch

Deals & partnerships

NFL Acquisition of rights to two additional NFL regular season games. this coming season

First game in Week 10 (Munich overseas game), creating a triple-header on broadcast TV. Second game is a Saturday game in Week 15.

Risks & headwinds

Absence of Super Bowl broadcast Q3 FY26

advertising revenue, as expected, declined due to the absence of last year's Super Bowl broadcast; Television advertising revenue in our Television segment declined 30% as underlying growth... was more than offset by the absence of Super Bowl LIX which generated over $800 million in gross advertising revenue in the prior year quarter.

Mitigation:excluding the Super Bowl impact, advertising revenue would have grown double digits driven by strength across the company; underlying growth led by Tubi, along with the benefit from this year's additional NFL wild card game

What to watch in Q4 FY26

Television distribution revenue growth

full year
Current down 1%
Target about flat

Why it matters

Indicates stabilization of traditional TV revenue streams before expected growth in FY27.

Television distribution revenue was down 1%, which continues to be in line with our expectation for TV distribution revenue to be about flat for the full year before returning to growth in fiscal '27.

Find out whether FOXA delivers this. Inve re-checks your case every morning.

Q&A highlights

Details on the newly acquired NFL games (when/where) and an update on the relationship with the NFL, specifically regarding concerns about games moving to streaming and potential renegotiation of the current deal.

Lachlan Murdoch confirmed the acquisition of two national NFL games: one in Week 10 (Munich overseas game, creating a triple-header) and one Saturday game in Week 15. He emphasized that there is no tension with the NFL, viewing them as 30-year partners. He noted that while speculation exists about renegotiating/extending the current deal (which has 4 years left), Fox has had no substantive discussions with the NFL about it. He stated Fox would broaden its relationship in a disciplined, value-creating way.

“there is no tension really with the NFL. We're partners for 30 years. We look forward to being partners for the next 30 years.”

asked by Michael Morris · answered by Lachlan Murdoch

2 min read 5 chapters

Detailed narrative

Strong Q3 Financial Performance

Fox Corporation reported a strong fiscal third quarter with $4 billion in revenue and a record $954 million in adjusted EBITDA, up 11% year-over-year. This performance was driven by robust core advertising trends and distribution revenue growth, despite the absence of the Super Bowl broadcast from the prior year. Excluding the Super Bowl impact, advertising revenue would have grown double digits, demonstrating broad-based strength across the company.

Advertising Momentum and Upfront Outlook

The company is experiencing strong advertising momentum, particularly at FOX News, which achieved its highest third-quarter advertising revenue ever with CPMs up over 45%. This strength extends across sports, news, entertainment, and local stations. Management anticipates a healthy upfront market, with low options being taken up and strong scatter prices. The upcoming midterm election cycle is expected to bring a record $11 billion in political ad spending, further bolstering advertising revenue.

Digital Growth and Strategic Investments

Tubi continues to be a significant growth driver, with revenue up 23% and total view time increasing by 19%. Notably, Tubi achieved breakeven or better profitability for the third consecutive quarter. The FOX One platform is also exceeding expectations, contributing positively to subscriber trends and distribution revenue. The company remains thoughtful in its digital investments, with full-year FY26 net digital investments expected to be less than the $290 million spent in FY25.

Sports and News Leadership

FOX News maintained its position as the most-watched cable network and the second most-watched network in Monday through Friday Prime in April, reflecting strong audience engagement during consequential news cycles. FOX Sports delivered major wins, including a 150% increase in World Baseball Classic ratings and a 45% increase for MLB opening weekend. The acquisition of rights to two additional NFL games further solidifies Fox's partnership with the league and enhances its sports programming.

Balance Sheet Strength and Capital Allocation

Fox ended the quarter with a robust balance sheet, holding $3.6 billion in cash and $6.6 billion in debt. The company continued its share buyback program, repurchasing an additional $1.95 billion year-to-date, bringing the total cumulative amount to over $8.5 billion since 2019, representing approximately 36% of total shares outstanding. This disciplined capital allocation reflects a commitment to maximizing long-term shareholder value.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.