Exchange: NASDAQ | Sector: Communication Services | Industry: Entertainment
Q1 2026
Published: Oct 30, 2025
Earnings Highlights
Revenue of $3.74B up 20.9% year-over-year
EPS of $1.32 increased by 97.1% from previous year
Net income of 599.00M
"Unavailable" - N/A
Fox Corporation (FOXA) QQ1 2026 Results Analysis – Strong YoY Revenue Growth with Solid EBITDA Foundation and Cash Flow GenIeration Considerations
Executive Summary
Fox Corporation delivered a standout top-line performance in QQ1 2026 with revenue of $3.738 billion, rising 20.9% year over year, supported by strong demand across its Entertainment portfolio and continued monetization of live sports and news franchises. Net income of $599 million and diluted earnings per share of $1.32 (GAAP $1.34) reflect improved profitability even as the company absorbed ongoing content and platform investments. EBITDA came in at $261 million, with an EBITDA margin of approximately 6.98%, underscoring FoxA’s ongoing leverage to its high-value sports and news assets. However, cash conversion remained challenging, with operating cash flow of -$130 million and free cash flow of -$130 million for the quarter, driven by working capital movements and non-cash items. The balance sheet shows robust liquidity (cash and cash equivalents of $4.37 billion) and manageable leverage (net debt around $2.24 billion on a ~3.0 billion quarterly EBITDA run-rate on a trailing-twelve-month basis). The company returned capital to shareholders via $138 million in dividends and $250 million of share repurchases during the period, highlighting a disciplined capital allocation approach. Going forward, the absence of formal guidance in the release means investors should anchor expectations to macro ad-market dynamics, streaming monetization (notably Tubi), and the sustainability of sports-right economics, while monitoring balance sheet liquidity and cash flow normalization over the coming quarters.
Key Performance Indicators
Revenue
3.74B
QoQ: -14.48% | YoY:20.89%
Net Income
599.00M
QoQ: 73.12% | YoY:87.77%
EPS
1.34
QoQ: 76.32% | YoY:97.06%
Revenue Trend
Margin Analysis
Key Insights
Revenue: $3.738 billion in QQ1 2026, up 20.89% YoY; QoQ change: -14.48%.
Net income: $599 million, up 87.77% YoY; QoQ +73.12%.
Operating income: not disclosed for the quarter; EBITDARatio ~0.0698.
Financial Highlights
- Revenue: $3.738 billion in QQ1 2026, up 20.89% YoY; QoQ change: -14.48%.
- Net income: $599 million, up 87.77% YoY; QoQ +73.12%.
- Diluted EPS: $1.32; GAAP EPS: $1.34; YoY EPS growth +97.06%; QoQ +76.32%.
- EBITDA: $261 million; EBITDA margin ~6.98% (EBITDA / Revenue).
- Operating income: not disclosed for the quarter; EBITDARatio ~0.0698.
- Profitability: Net income margin ~16.02% (net income / revenue).
- Cash flow: Operating cash flow -$130 million; Free cash flow -$130 million. Net change in cash -$983 million; Cash at end of period $4.368 billion; Cash at beginning of period $5.351 billion.
- Balance sheet: Total assets $22.766 billion; Total liabilities $10.455 billion; Total stockholders’ equity $12.208 billion; Net debt $2.235 billion; Cash and cash equivalents $4.368 billion; Long-term debt $6.603 billion; Goodwill $3.637 billion; Intangible assets $2.96 billion; Current assets $7.969 billion; Current liabilities $2.461 billion; Total current assets $7.969 billion; Total non-current assets $14.797 billion.
- Leverage and liquidity context: Trailing-twelve-month EBITDA (based on four-quarter sum) ≈ $2.959 billion; Net debt ≈ $2.235 billion; Net debt to LTM EBITDA ≈ 0.76x, indicating solid leverage and liquidity footing given FoxA’s asset mix and cash position.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
3.74B
20.89%
-14.48%
Net Income
599.00M
87.77%
73.12%
EPS
1.34
97.06%
76.32%
Key Financial Ratios
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Transcript data not provided in the prompt. No management call quotes available for extraction in this analysis.
Unavailable
— N/A
Unavailable
— N/A
Forward Guidance
Management did not publish formal full-year guidance in the QQ1 2026 materials. Given the quarter’s strong revenue growth but negative operating cash flow, the near-term emphasis appears to be on monetizing digital platforms (including Tubi), optimizing live sports inventory, and sustaining cost discipline. Industry trends suggest a potential stabilization or modest improvement in the advertising environment and continued monetization of streaming assets. Investors should monitor: (1) trend in ad demand and pricing, (2) streaming monetization and subscriber metrics on FAST/SVOD platforms, (3) sports-right cost dynamics and renewal timing, (4) working capital normalization, and (5) cash conversion and capital allocation cadence (dividends vs. buybacks). A plausible scenario could be flat to single-digit revenue growth with improving free cash flow if working capital normalizes and streaming contributions scale as intended.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
FWONA
36.00%
-0.90%
4.55%
-92.03%
IPG
11.30%
-1.81%
-2.38%
-29.62%
NWSA
1.00%
8.77%
1.44%
31.84%
PARAA
31.00%
7.65%
0.92%
12.24%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Overall, FoxA presents a constructive medium-term setup: solid YoY revenue growth, improving profitability metrics, and a robust liquidity cushion support a steadier investment profile. The stock benefits from a diversified content ecosystem anchored by live sports and news assets, with upside potential from Tubi and other streaming monetization efforts. The key caveat is near-term cash flow headwinds due to working capital and non-cash items, which could weigh on free cash flow generation until normalization occurs. In a scenario where the advertising environment stabilizes and streaming monetization accelerates, FoxA could expand EBITDA margins and free cash flow generation while sustaining shareholder returns. In comparison with peers, FoxA’s leverage appears manageable, and its asset-light cash generation profile through strategic sports content positions it as a defensive yet growth-oriented exposure within the Entertainment/Communication Services space.
Key Investment Factors
Growth Potential
Growth driven by monetization of digital platforms (Tubi and ancillary streaming strategies) and continued premium sports/news content. Potential upside from efficient sports-right renewals and higher monetization of ad-supported streaming.
Profitability Risk
Advertising cycle sensitivity and macro ad softness; high sports-right costs and renewal risk; reliance on US markets with limited international breadth; streaming margin pressure as scale builds; regulatory and competitive pressures in media landscape.
Financial Position
Strong liquidity with cash of ~$4.37B and modest net debt (~$2.24B) against LTM EBITDA of ~$2.96B. Negative near-term free cash flow indicates working capital dynamics and non-cash charges, but the balance sheet shows ample liquidity to fund shareholder returns and strategic investments.
SWOT Analysis
Strengths
Leading U.S. entertainment and sports portfolio with iconic brands (FOX News, FOX Sports, FOX Network)
Diversified revenue mix across Cable, Television, and digital properties (Tubi, Blockchain Creative Labs)
Strong liquidity position (cash and cash equivalents ~ $4.37B) and modest net debt (~$2.24B) with LTM EBITDA ≈ $2.96B
Resilient free cash flow conversion potential as working-capital normalization occurs
Disciplined capital allocation (dividends and share repurchases)
Weaknesses
Near-term negative free cash flow (operating cash flow -$130M) due to working capital and non-cash items
Dependency on advertising cycle and traditional TV monetization in an evolving media environment
Limited international exposure relative to some peers, potentially limiting global growth optionality
Opportunities
Accelerated monetization of Tubi and streaming initiatives (FAST/SVOD)
Growth in live sports rights and premium content monetization
Advertising market recovery and pricing power leading to improved cash flow
Use of strong balance sheet to opportunistically pursue accretive content/assets or partnerships
Threats
Ad-market volatility and cyclicality impacting short-term top-line growth
Rising sports-right costs and renewal risk
Competition from streaming platforms and traditional media consolidations
Regulatory scrutiny and potential changes in advertising/digital platforms environment
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