stockrowLatest quarter
Fox reported Q4 FY2026 revenue of $4.2 billion, up 28.1% from $3.3 billion a year earlier and above the consensus of $3.6 billion. The company reported adjusted EPS of $1.79 against the consensus of $1.34, while diluted EPS was $1.61, compared with $1.57 in Q4 FY2025.
Steve Tomsic said the revenue increase reflected a 78% rise in advertising revenue, led by the FIFA Men’s World Cup broadcast and accelerating growth at Tubi, while distribution revenue grew 5%. He said cable-network revenue grew 9%, as advertising and distribution gains were partly offset by lower content and other revenue from sports sublicensing timing. Tomsic said television revenue rose 45%, led by advertising revenue, which increased 108% on the World Cup, political advertising and Tubi growth.
The company reported gross margin of 43.5%, down 3.0 percentage points from 46.5%, while operating margin was 25.7%, up 0.3 percentage points. Fox reported free cash flow of $726.0 million, compared with $1.4 billion a year earlier; Tomsic attributed the change to World Cup-related working-capital timing.
| Q4 FY2026 | Q4 FY2025 | Change | |
|---|---|---|---|
| Revenue | $4.2 billion | $3.3 billion | 28.1% |
| Diluted EPS | $1.61 | $1.57 | 2.55% |
| Gross margin | 43.5% | 46.5% | −3.0 percentage points |
| Operating margin | 25.7% | 25.4% | 0.3 percentage points |
| Free cash flow | $726.0 million | $1.4 billion | −47.9% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $1.79 | $1.34 | Beat by 33.6% |
| Revenue | $4.2 billion | $3.6 billion | Beat by 17.0% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
Lachlan Murdoch said the World Cup, the early stages of the midterm political cycle and demand across Fox’s national, local and digital portfolio had carried advertising momentum into the first quarter of fiscal 2027. He said Fox completed upfront sales with double-digit volume growth across sports, news and Tubi, and that eight of the 10 categories it tracks were up in the upfront.
Murdoch said Tubi’s fourth-quarter revenue grew 35% and total viewing time increased 17%, with momentum continuing into the first quarter. Asked about connected-TV advertising competition, he said the market remained active, competitive and price-sensitive, but said Tubi had not reduced advertising rates to compete. He attributed Tubi’s position to its audience mix and video-on-demand viewing.
Murdoch said Fox One’s subscriber additions were incremental rather than drawn from traditional pay-TV customers, and said churn had been below the company’s expectations. Tomsic said digital-investment spending came in at less than $200 million in fiscal 2026, compared with just under $300 million in fiscal 2025, reflecting the performance of Tubi and Fox One. He said Fox expects the improvement in that investment portfolio to continue in fiscal 2027.
On distribution, Tomsic said fiscal 2027 returns to a more normalized renewal level, more weighted toward television, and said both cable and television should contribute to distribution-revenue growth. He also said World Cup revenue would continue to benefit the fiscal first quarter, with fiscal 2027 revenue weighted toward the television segment.
Responding to questions on political advertising, Murdoch said independent tracking firms estimated more than $11 billion of spending in the coming midterm election and said Fox expects a record midterm cycle. On capital allocation, Tomsic said the share-repurchase program should continue while the pending Roku transaction is considered and afterward. Murdoch said the transaction remained on track for an expected first-half calendar-2027 closing, while noting that the company was still early in the approval process.
Guidance
Management’s formal guidance is not available, so Fox’s current guidance cannot be compared with a previous guide. On the call, Tomsic said Fox expects both cable and television to contribute to fiscal 2027 distribution-revenue growth, and Murdoch said the company expects a record midterm political-advertising cycle.