Cable news and media network Fox (NASDAQ:FOXA) reported revenue ahead of Wall Street’s expectations in calendar Q3 2026 (fiscal Q1 2027), with sales up 22.3% year on year to $4.57 billion. Its non-GAAP profit of $2.54 per share was 25.6% above analysts’ consensus estimates.
Is now the time to buy FOXA? Find out in our full research report (it’s free for active Edge members).
FOX (FOXA) Q3 CY2026 highlights:
- Revenue $4.57 billion vs S&P analysts’ estimates of $4.29 billion (22.3% year-on-year growth, 6.5% beat)
- Adjusted EPS $2.54 vs S&P analysts’ estimates of $2.02 (25.6% beat)
- Adjusted EBITDA $1.64 billion vs analyst estimates of $1.33 billion (35.9% margin, 23.1% beat)
- Operating margin 33.3%, up from 25.9% in the same quarter last year
- Market capitalization $24.97 billion
StockStory’s take
Fox's third quarter results were driven by a combination of major sporting events, robust advertising demand, and continued digital expansion. Management attributed the strong performance to the successful broadcast of the FIFA Men's World Cup, which significantly boosted advertising revenues, as well as ongoing momentum at Tubi and incremental distribution gains from FOX One. CEO Lachlan Murdoch highlighted that FOX One's subscriber growth helped offset declines in traditional cable, emphasizing, “The most pleasing aspect of this is the fact that the subscribers are almost entirely incremental to our subscriber base.”
Looking ahead, Fox's guidance centers on leveraging its multi-platform content strategy, with management pointing to further growth opportunities from FOX One, Tubi, and political advertising tied to the ongoing election cycle. Murdoch stressed the importance of maintaining engagement across sports and news, anticipating seasonal shifts as major events unfold. He noted, “As you move forward, the FOX One subscriber base is going to be somewhat seasonal with sports seasons coming and going,” and management remains focused on expanding digital reach while preparing for potential shifts in viewer behavior.
Key insights from management’s remarks
Management attributed the quarter’s outperformance to major sports programming, digital streaming growth, and strong political advertising trends, which together offset industry-wide challenges in traditional TV.
- World Cup impact: The FIFA Men's World Cup broadcast was a significant driver, contributing to a 47% increase in advertising revenue and higher sports engagement across Fox’s platforms.
- FOX One subscriber growth: FOX One saw over 30% growth in subscriber acquisitions during the football season kickoff, with 97% of new subscribers being incremental and not cannibalizing traditional cable customers.
- Tubi's expansion: Tubi, Fox’s ad-supported streaming service, posted 35% revenue growth and a 23% increase in total view time, benefiting from a diverse, cordless audience that is difficult for advertisers to reach elsewhere.
- Political advertising strength: Political ad revenue surpassed $350 million for the midterm cycle, with spending distributed across local stations, Tubi, and national platforms, reflecting Fox’s broad reach during election coverage.
- Cable news trends: While FOX News remained the most-watched cable news network, management acknowledged some viewer fatigue and difficult year-over-year ratings comparisons, but emphasized retention of overall audience share.
Drivers of future performance
Fox expects future performance to be shaped by continued sports and news content engagement, growth from digital and streaming platforms, and evolving advertising trends in a competitive media environment.
- Seasonal and event-driven engagement: Management anticipates fluctuations in subscriber growth for FOX One and advertising revenue tied to the timing of major sports events and political cycles, noting that engagement may ebb outside peak periods like football season or major elections.
- Digital monetization focus: Fox expects Tubi and FOX One to drive incremental growth, with Tubi targeting a 20% margin at maturity and ongoing investment in original content and creator partnerships to sustain user engagement and ad revenue.
- Ad market risks and competitive pressures: Management highlighted risks such as advertiser fatigue in digital news, competitive shifts in the streaming landscape, and the need to carefully evaluate future sports rights acquisitions, particularly as FIFA rights negotiations approach.
Catalysts in upcoming quarters
Looking ahead, the StockStory team will be monitoring (1) the pace of subscriber and engagement growth for FOX One, especially around marquee sports events, (2) Tubi’s ability to maintain high revenue and margin trajectories as competition intensifies, and (3) the impact of political advertising through the remainder of the election cycle. Progress on digital content investments and clarity on future sports rights bids will also be key signposts.
FOX currently trades at $62.52, down from $63.24 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).
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