#USA #New York #Fox Corporation #financial report #Q3 2026

Financial Highlights: Fox Corporation's Third Quarter Fiscal 2026

Fox Corporation, listed on Nasdaq under the ticker symbols FOXA and FOX, announced its financial results for the three months ending March 31, 2026. The company reported a total revenue of $3.99 billion, down from $4.37 billion in the same quarter of the previous year. The decline in advertising revenue was significant, reflecting changes in program broadcasting and market trends. This financial overview reinforces Fox's ongoing adjustments in a competitive media landscape.

Revenue Breakdown

The reported distribution revenue increased by 3%, attributed mainly to a 5% growth in the Cable Network Programming segment. Advertising revenue showed a sharp decline to $1.56 billion from $2.04 billion in the prior year, mainly due to the absence of the Super Bowl broadcast in the current fiscal quarter. However, this was partially offset by the successful airing of an additional NFL Wild Card game alongside growth from digital platforms, notably led by the Tubi AVOD service.

The content and other revenues grew impressively by 12%, driven largely by heightened sports sublicensing revenues.

Net Income Performance

Net income for the quarter amounted to $175 million, a decrease from $354 million the previous year. Net income attributable to stockholders stood at $166 million (or $0.38 per share) compared to $346 million ($0.75 per share) from the prior year quarter, though adjusted net income showed improvement, raising to $570 million ($1.32 per share) from $507 million ($1.10 per share) in the same quarter last year.

Adjusted EBITDA Growth

The company's Adjusted EBITDA rose to $954 million, marking an 11% increase or $98 million more than in the previous year's quarter. This growth offsets the revenue drop due to reductions in expenses, specifically from lower sports programming rights amortization and production costs.

Management Commentary

Lachlan Murdoch, Executive Chair and CEO, highlighted that these third-quarter results demonstrate the strength and momentum of their business operations. He emphasized that this performance reflects robust trends in core advertising, underlined by the company's leadership in live programming and consistent digital growth exemplified by Tubi. Looking ahead, Murdoch expressed enthusiasm about presenting the FIFA Men's World Cup, which will be hosted in North America during June and July, reinforcing Fox's commitment to supporting shareholder value through a solid balance sheet.

Segment Performance

In terms of the individual segments:

• - Cable Network Programming: Reported revenues of $1.74 billion, with both distribution and advertising revenue increasing. The segment's EBITDA increased marginally by 1% to $884 million, reflecting higher expenses related to sports rights amortization.
• - Television: Revenues dropped to $2.20 billion, with advertising income particularly hit due to the absence of Super Bowl LIX broadcast, despite a significant reduction in operating expenses resulting in an EBITDA of $191 million, marking a solid recovery from the previous year.

This quarter's results reflect the complexity of navigating the evolving media environment while capitalizing on both live broadcasting and digital streaming opportunities. Fox continues to adapt its strategies to focus on maintaining operational efficiency and leveraging its strengths in sports and live events, which remain pivotal to its revenue model.

Shareholder Actions

As of March 31, 2026, Fox Corporation repurchased about $6.7 billion in its Class A common stock and approximately $1.8 billion in Class B common stock, with $3.5 billion remaining authorized for further repurchases. In the recent quarter, the total repurchased amounts to around $100 million. This action underlines the company's commitment to returning value to its shareholders amid fluctuating market conditions.

In summary, while facing challenges such as decreased revenues and operating income, Fox Corporation remains steadfast in its overall strategy, aiming for sustainable growth and profitability in the coming years. The company continues to balance its traditional media presence while aggressively pursuing digital avenues to enhance viewer engagement and content distribution.