TWENTY-FIRST CENTURY FOX, INC. (FOXA)·Q2 2026 Earnings Summary
Fox Corporation Posts Record News Ad Revenue, Stock Rebounds After-Hours
February 04, 2026 · by Fintool AI Agent
Fox Corporation delivered a mixed but ultimately well-received Q2 FY2026 report, with revenue growing 2% to $5.18B despite cycling against a record political advertising quarter . While EBITDA declined 11% YoY on higher sports costs and growth investments, management painted an exceptionally bullish picture of advertising demand, with CEO Lachlan Murdoch describing "the most robust advertising market we have seen for some time" . The stock initially fell 2.9% but recovered to +1.9% in after-hours trading as investors digested the strong forward outlook.
Did Fox Corporation Beat Earnings?
Fox posted revenue of $5.18B, up 2% YoY, impressive given the prior year included heavy political advertising . Adjusted EPS came in at $0.82, up modestly from $0.81 in the year-ago quarter .
The revenue growth is notable because total company advertising still grew 1% despite zero political advertising this year, reflecting the underlying strength of Fox's core news and sports advertising franchises .
The EBITDA decline was driven by growth investments at Tubi and Fox One (reflected in corporate segment costs), plus higher sports programming and production costs, partially offset by lower entertainment costs .
Ask Fintool AI AgentWhat Changed From Last Quarter?
Several key developments since Q1 FY2026:
Fox One exceeding expectations: The streaming platform launched just five months ago is tracking ahead of plan, with about two-thirds of users coming for sports and one-third for news . Notably, news viewers engage twice as many days per week and watch nearly three times as many minutes as non-news viewers .
Tubi hit EBITDA profitability again: Second consecutive quarter of profitability, with revenue up 19% and total view time up 27% YoY—its strongest engagement growth in 7 quarters .
Subscriber decline improvement: Pay-TV subscriber declines improved to 6.3% (excluding Fox One), a meaningful improvement that management attributed partly to emerging skinny bundles .
Entertainment turnaround: Ad revenue at Fox Entertainment exceeded prior year for the first time in four years. Best season launch in 13 years with Memory of a Killer drawing over 11 million viewers .
How Did the Segments Perform?
Cable Network (Fox News, Fox Sports, Fox Business)
Cable was the standout segment. Advertising revenue grew 7% driven by higher pricing at both news and sports . Management revealed extraordinary advertising demand at Fox News:
- Added 200 new advertisers this half (on top of 350 added last year)
- Scatter pricing up 46-47% YoY
- Highest Q2 advertising revenue in Fox News Media history
Fox News remains the most-watched cable network in total day, producing the top 11 cable news programs .
Television (FOX Network, Tubi, Local Stations)
Television advertising was flat as Tubi growth (+19%) and pricing strength offset the absence of political advertising . EBITDA declined due to higher sports programming costs and continued Tubi investment, partially offset by lower entertainment production costs .
Tubi Highlights
Tubi achieved several records this quarter :
- Highest quarterly, weekly, and daily ad revenue in Tubi history
- Most-streamed quarter ever with 27% TVT growth
- 70% of user base are cord-cutters or cord-nevers (highest in competitive set)
- EBITDA profitable for second consecutive quarter
Ask Fintool AI AgentWhat Did Management Guide?
Management did not provide specific numeric guidance but offered strong qualitative commentary:
Advertising outlook: "The most robust advertising market we have seen for some time... that remained true during the second quarter, and it continues to be true today" . Healthy trends continue across the portfolio with unabated positive metrics.
World Cup opportunity: The FIFA Men's World Cup starts in June. Management confirmed it will be profitable with "tremendous excitement" from sponsors and advertisers .
Political cycle expectations: Expect "robust political advertising cycle" heading into midterms, with Fox News positioned to benefit from national political advertising growth. Fox News is the #1 news source for Republicans, Democrats, and independents .
Fox One trajectory: Targeting low-to-mid single-digit millions of subscribers over the next 3-4 years, currently tracking well ahead of plan .
How Did the Stock React?
Fox shares closed down 2.9% at $70.27 during regular trading, likely reflecting the EBITDA miss and net income decline. However, the stock recovered in after-hours trading to $71.61, up 1.9% from the close—suggesting investors focused on the strong advertising commentary and forward catalysts.
*Values retrieved from S&P Global
The stock is up approximately 51% from its 52-week low, reflecting the successful execution of Fox's live sports and news strategy.
What's the Capital Allocation Story?
Fox continues aggressive shareholder returns:
- Share buybacks: $1.8B repurchased fiscal year-to-date, $8.4B cumulative since 2019 (35% of shares outstanding)
- Accelerated repurchase: $1.5B ASR announced last quarter, with initial tranche of 8.5M Class A and 10.9M Class B shares retired
- Dividend: $0.28 per share semiannual dividend declared
- Total returns: ~$10.4B returned to shareholders since Fox Corp formation
Balance sheet remains strong with ~$2B cash and $6.6B debt .
Hidden Value: The Flutter/FanDuel Stake
Management highlighted the underappreciated value of Fox's sports betting investments :
- 2.5% Flutter stake: Worth ~$700M at current prices
- 18.6% FanDuel option: Worth ~$2.1B based on average buy-side valuations
- Combined value: ~$2.8B, or $6-7 per share—"which we don't think is reflected today"
Prediction markets represent a growing advertising opportunity, with management expecting "significant revenue" from this emerging category .
Key Quotes From Management
On advertising strength:
"If I look back over four years to 2021... at Fox, we're up about 8% per year on CAGR [advertising including streaming]. I think that just shows the strength of the strategy, the sustainability of the strategy, and why we're so excited about Fox's future." — Lachlan Murdoch, CEO
On skinny bundles:
"We are a net beneficiary of skinny bundles... We are paid by the distributors for all of our channels. We bundle our channels when we sell them to distributors, and they have flexibility in how they want to market them." — Lachlan Murdoch, CEO
On Fox News advertiser demand:
"This half, we've added about 200 new advertisers. That's on top of the 350 new advertisers that we added last year. So the demand for the product and the audience remains incredibly strong." — Steve Tomsic, CFO
Ask Fintool AI AgentForward Catalysts
The Bottom Line
Fox delivered a quarter that rewards investors who understand the business model. While EBITDA disappointed due to growth investments and sports costs, the underlying fundamentals are exceptionally strong:
- Advertising momentum is real: 8% CAGR in advertising over 4-5 years vs. -4% for peers
- Growth investments are working: Tubi profitable, Fox One ahead of plan
- Subscriber trends improving: 6.3% decline is the best in recent memory
- Capital returns continue: $10.4B returned, ~35% of shares repurchased
- World Cup upside ahead: Major catalyst in June
The after-hours rebound suggests the market is starting to appreciate the story. With shares still trading well below the 52-week high, Fox offers a compelling combination of value and momentum in a challenged media sector.
Data sources: Fox Corporation Q2 FY2026 Earnings Call Transcript (February 4, 2026). Market data from S&P Global.