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FOFOXA

Fox (FOXA) Q4 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q4 FY26)· Aug 6, 2026

Source: earnings call transcript

Executive summary

Fox Corporation Q4 FY26 — Record Financials Driven by World Cup and Tubi Growth

Fox Corporation delivered record financial results in Q4 FY26, propelled by the successful broadcast of the FIFA Men's World Cup and robust growth across its digital platforms, particularly Tubi and FOX One. The company's strategic focus on live premium sports and digital expansion is yielding strong advertising and distribution revenue, with management expressing confidence in continued momentum into FY27, supported by a strong upfront and upcoming midterm elections.

Highlights

5

  • Total revenue increased 28% to $4.2 billion in Q4 FY26, driven by strong advertising and distribution.

  • EBITDA improved 27% to $1.2 billion in Q4 FY26, reflecting strong operational performance.

  • Advertising revenue grew 78% in Q4 FY26, fueled by the FIFA Men's World Cup and Tubi's continued strength.

  • Tubi achieved its most streamed and highest revenue quarter ever, with revenue growth accelerating to 35% and monthly active users reaching 110 million.

  • FOX One continues to exceed expectations, driving incremental subscriber acquisition and strong retention rates with minimal cannibalization of traditional pay-TV.

Concerns

2

  • Cable Network Programming segment EBITDA declined 3% in Q4 FY26, despite revenue growth, due to a 20% increase in expenses from sports programming rights and production costs.

  • Net income attributable to stockholders decreased to $1.7 billion in FY26 from $2.3 billion in FY25, impacted by higher digital content costs and World Cup rights.

Guidance & targets

CategoryTargetConfidence
Roku acquisition closing
First half of calendar 2027
high materiality
High
Cable and TV segments distribution revenue
Growth
medium materiality
High
Digital-led growth initiatives bottom line
Continued improvement
medium materiality
High
Midterm political ad revenue
Beat prior record cycle (over $260 million)
high materiality
High

Segment performance

SegmentRevenueYoYQoQMargin
Cable Network Programming
Revenue growth was more than offset by a 20% increase in expenses, primarily attributable to an increase in sports programming rights amortization and production costs led by the World Cup.
Cable Advertising Revenue: 22% growth YoYCable Distribution Revenue: 7% growth YoYCable Content and Other Revenue: $262 millionCable Content and Other Revenue (prior year): $269 millionCable Content and Other Revenue: 39% decline YoYThird-party distributor subscriber declines: under 6.5%
9% growth9%—3% decline in EBITDA
Television
Expenses increased 27% primarily reflecting higher sports programming rights amortization and production costs led by the broadcast of the World Cup.
Advertising Revenue: 108% growth YoYDistribution Revenue: Essentially flat YoYContent and Other Revenue: 14% growth YoYTubi: EBITDA positive in each quarter of fiscal 2026
45% growth45%—129% growth in EBITDA

Deals & partnerships

Roku Acquisition of Roku to expand digital footprint and offerings, bolstering position in connected TV distribution and advertising.

Transaction is on track and in early approval process. Expected to combine premium content, market relationships, scale, distribution, and platform capabilities.

NFL Existing contractual relationship for NFL broadcast rights. extends to the completion of the 2029 season

Thorough and productive discussions with the league concluded with no changes to the current contract. Opt-out seasons and beyond will be discussed closer to the 2030 season. FOX also recently acquired NFL rights for Mexico.

Risks & headwinds

Competitive CTV Market current

A lot of new inventory available

Mitigation:Tubi has competed exceedingly well despite heavy competition, with 35% revenue growth, by being priced efficiently and not having to reduce ad rates.

World Cup Timing Impact on Free Cash Flow Q4 FY26

$726 million free cash flow in Q4 FY26

Mitigation:Quarterly free cash flow was impacted by the timing of working capital related to the World Cup, where rights payments for the tournament landed in fiscal '26 while advertising receivables will be collected early in fiscal '27. The benefit of the World Cup will continue into Q1 FY27, strongly weighted towards the Television segment.

Cable Segment Expense Growth Q4 FY26

20% increase in expenses

Mitigation:Cable Network Programming segment revenue growth was more than offset by a 20% increase in expenses, primarily attributable to an increase in sports programming rights amortization and production costs led by the World Cup, which is a one-time event.

What to watch in Q1 FY27

Tubi Revenue Growth Momentum

Q1 FY27
Current 35% in Q4 FY26
Target Continued momentum into Q1 FY27

Why it matters

Tubi's growth is a key driver for digital advertising and overall revenue, especially given the competitive CTV market.

Tubi grew, as you mentioned, 35%, that momentum has continued into the first quarter.

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

Q&A highlights

Inquired about the underlying ad market strength (linear, CTV pricing/fill rates) and sought clarification on the NFL contract, specifically regarding price changes before 2030.

Lachlan described a 'very strong ad market' across FOX's portfolio, with double-digit volume growth in upfronts for sports, news, and Tubi, and leading rates of change. Tubi's 35% revenue growth was highlighted despite competition. For NFL, no changes to contractual terms until 2030, but no further color provided.

“So first, on the ad market, we're seeing a very strong ad market for us. I can't speak for the total ad market, but certainly for our businesses and really across our entire portfolio. We are very pleased with the strength of the demand for [ infections ] across sports, news the local stations, Tubi and also entertainment. So it's a strong market.”

asked by John Hodulik · answered by Lachlan Murdoch

2 min read 6 chapters

Detailed narrative

FIFA Men's World Cup Success

The FIFA Men's World Cup broadcast was a significant driver for FOX in FY26, leading to record audiences in the U.S. and demonstrating the company's ability to deliver live premium sports at scale. The event fueled a 78% increase in Q4 advertising revenue and served as a key customer acquisition opportunity for FOX One, surpassing subscriber acquisition and retention expectations. The tournament's success led FOX to top all networks in live event sports consumption in fiscal '26.

Tubi's Outperformance and Strategic Value

Tubi delivered its most streamed and highest revenue quarter ever, with revenue growth accelerating to 35% and total viewing time increasing by 17%. The platform reached 110 million monthly active users by year-end, with its World Cup hub attracting over 20 million viewers. Tubi's success is attributed to its large cordless audience (close to 70% of viewers) and high engagement with video-on-demand content (96% of viewing), making it a valuable advertising vehicle.

Strategic Digital Expansion

FOX's digital evolution is highlighted by the successful launch of FOX One and the pending acquisition of Roku. FOX One has shown minimal cannibalization of traditional pay-TV, attracting incremental subscribers with churn well below expectations. The Roku acquisition, expected to close in the first half of calendar 2027, is anticipated to bolster FOX's position in connected TV distribution and advertising, leveraging Roku's scale and platform capabilities.

NFL Contract Stability and Sports Rights

FOX confirmed that there will be no amendments to its existing contractual relationship with the NFL, which extends to the completion of the 2029 season. Discussions for opt-out seasons and beyond will occur closer to the 2030 season, maintaining a stable outlook for NFL broadcast rights. The company emphasized its positive relationship with the NFL, noting its long-standing commitment and recent acquisition of NFL rights for Mexico.

Strong Advertising Market and Political Tailwinds

The company experienced a very strong advertising market across its portfolio, with double-digit volume growth in the upfronts for sports, news, and Tubi, achieving leading rates of change. This momentum is expected to continue into Q1 FY27. Political advertising for the upcoming midterm elections is anticipated to be a record cycle, with industry estimates exceeding $11 billion and FOX expecting to beat its prior midterm record of over $260 million.

Capital Allocation and Shareholder Returns

In FY26, Fox repurchased an additional $2 billion in shares and distributed $243 million in dividends. The company increased its semiannual dividend to $0.29 per share. Cumulatively, $10.7 billion of capital has been returned to shareholders since June 2018, including $8.6 billion in share repurchases representing 36% of total shares outstanding since the buyback program's launch in November 2019. The buyback program is expected to continue unabated.

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