Cable news and media network Fox (NASDAQ: FOXA) reported Q1 CY2026 results beating Wall Street’s revenue expectations, but sales fell by 8.6% year on year to $3.99 billion. Its non-GAAP profit of $1.32 per share was 36.4% 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).

StockStory’s Take

Fox’s first quarter results drew a positive reaction from the market, reflecting better-than-expected performance despite an overall decline in sales. Management attributed the quarter’s success to strong advertising trends outside of last year’s Super Bowl, growth in distribution revenue, and continued expansion of digital platforms like Tubi and Fox One. CEO Lachlan Murdoch highlighted, “Excluding the Super Bowl impact, advertising revenue would have grown double digits, driven by strength across the company.” 

Looking ahead, management emphasized several major events and trends expected to shape results, including the upcoming FIFA Men’s World Cup, the U.S. midterm election cycle, and ongoing investments in digital platforms. Murdoch stated the World Cup will “deliver the most matches ever on U.S. broadcast television,” with spillover benefits anticipated for both FOX Sports and Tubi. CFO Steve Tomsic underscored a disciplined approach to capital allocation and digital investments, noting that momentum at Fox One and Tubi is expected to continue supporting future growth.

Key Insights from Management’s Remarks

Management identified advertising strength (excluding the Super Bowl), digital expansion, and resilient distribution revenue as the main drivers behind the first quarter’s financial performance.

• Advertising excluding Super Bowl: Management noted that core advertising growth would have been in the double digits if not for the absence of last year’s Super Bowl broadcast, with robust demand across sports, news, and entertainment segments.

• Distribution revenue growth: The company highlighted a 3% increase in distribution revenue, largely due to pricing gains and the early success of Fox One, its owned and operated digital distribution platform, which is helping mitigate traditional pay TV subscriber declines.

• FOX News momentum: FOX News achieved its highest third quarter advertising revenue ever, fueled by strong audience engagement and increased national advertising pricing, with CEO Lachlan Murdoch citing over 200 new premium advertising clients added during the year.

• Tubi and digital engagement: Tubi, Fox’s ad-supported streaming platform, delivered revenue growth of 23% and a 19% increase in total view time. Management credited this to expanded original content and creator-led titles, which are attracting younger viewers and improving user retention.

• Sports rights and programming: The company acquired rights to two additional NFL games, building on a strong live sports portfolio that included record viewership for Major League Baseball and IndyCar. Management expects these new rights to drive further engagement and advertising opportunities across platforms.

Drivers of Future Performance

Fox’s outlook for the coming quarters centers on major live events, digital platform growth, and a resilient advertising environment.

• FIFA Men's World Cup impact: Management expects the World Cup to offer significant exposure and advertising uplift across both FOX Sports and Tubi, with over 100 matches scheduled and major sponsorship and audience engagement potential. The event’s timing is also expected to positively affect Fox One’s subscriber growth and brand positioning.

• Political advertising tailwinds: The U.S. midterm elections are projected to drive an influx of political advertising, particularly benefiting Fox’s local stations in key battleground states. CEO Lachlan Murdoch referenced third-party estimates of an $11 billion political ad market for the cycle, with Fox already seeing record political revenue for an off year.

• Continued digital investment: The company aims to balance disciplined digital investment with continued expansion of Tubi and Fox One. CFO Steve Tomsic noted that Tubi was breakeven or better for three straight quarters, and Fox One is delivering lower-than-expected subscriber churn, providing a foundation for further digital growth.

Catalysts in Upcoming Quarters

In the coming quarters, our analysts will be closely monitoring (1) the performance and monetization of the FIFA Men’s World Cup across FOX’s platforms, (2) the pace and sustainability of digital subscriber growth at Tubi and Fox One, and (3) the scale of political advertising revenue as the U.S. midterm cycle intensifies. Execution on live programming and viewer retention will also be essential signposts for the company’s momentum.

FOX currently trades at $67.69, up from $62.94 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).

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