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1. Company Snapshot

1.a. Company Description

Fox Corporation operates as a news, sports, and entertainment company in the United States (U.S.).The company operates through Cable Network Programming; Television; and Other, Corporate and Eliminations segments.The Cable Network Programming segment produces and licenses news, business news, and sports content for distribution through traditional and virtual multi-channel video programming distributors (MVPDs) and other digital platforms, primarily in the U.S. It operates FOX News, a national cable news channel; FOX Business, a business news national cable channel; FS1 and FS2 multi-sport national networks; FOX Sports Racing, a video programming service that comprises motor sports programming; FOX Soccer Plus, a video programming network for live soccer and rugby competitions; FOX Deportes, a Spanish-language sports programming service; and Big Ten Network, a national video programming service.


The Television segment acquires, produces, markets, and distributes programming.It operates The FOX Network, a national television broadcast network that broadcasts sports programming and entertainment; Tubi, an advertising-supported video-on-demand service; Fox Alternative Entertainment, a full-service production studio that develops and produces unscripted and alternative programming; MyNetworkTV, a programming distribution service; and Blockchain Creative Labs, which is focuses on the creation, distribution and monetization of Web3 content.This segment owns and operates 29 broadcast television stations.


The Other, Corporate and Eliminations segment owns the FOX Studios Lot that provides production and post-production services, including 15 sound stages, two broadcast studios, theaters and screening rooms, editing rooms, and other television and film production facilities in Los Angeles, California.The company was incorporated in 2018 and is based in New York, New York.

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1.b. Last Insights on FOXA

Fox Corporation's recent performance was driven by strong Q1 fiscal 2026 results, with revenues increasing 5% to $3.74 billion, driven by higher engagement and advertising demand. The company's adjusted EBITDA was $1.07 billion, and net income was $609 million. Earnings per share came in at $1.51, beating estimates. A $1.5 billion accelerated share repurchase transaction was also announced, which will likely have a positive impact on shareholders. Growth in digital advertising and entertainment content fueled the company's performance.

1.c. Company Highlights

2. Fox Corp's Q1 FY2026 Earnings: A Strong Start

Fox Corporation reported a robust first quarter of fiscal 2026, with revenue growth of 5% and EBITDA growth of 2%. The company's quarterly EBITDA stood at $1.07 billion, with net income attributable to stockholders of $599 million or $1.32 per share. Excluding non-core items, adjusted net income was $686 million and adjusted EPS was $1.51, beating analyst estimates of $1.1. The strong EPS performance was a highlight, driven by the company's diverse revenue streams, including advertising and distribution revenue.

Publication Date: Nov -02

📋 Highlights
  • Revenue & EBITDA Growth:: 5% revenue growth and 2% EBITDA growth in Q1 2026, driven by advertising (6% increase) and distribution (3% growth) segments.
  • Fox One Performance:: Launched two months prior, exceeded expectations with strong subscriber growth and partnerships with ESPN and Verizon.
  • Tubi Profitability:: Achieved 27% revenue growth and profitability, with margins projected to reach 20–25% long-term.
  • Share Buyback Program:: $1.5B accelerated share repurchase (700M Class A and 800M Class B) to enhance shareholder value.
  • Subscriber Trends:: Distribution subscriber declines stabilized at <7% for third consecutive quarter, aided by flexible "skinny bundles."

Revenue Growth Drivers

Advertising revenue grew 6% despite the absence of last year's political revenue, driven by robust trends at news, sports, and entertainment. Distribution revenue grew 3%, with subscriber declines remaining below 7% for the third consecutive quarter. The company's new streaming service, Fox One, has exceeded expectations, with a healthy mix of sports and news viewing, and a strong uptake of subscribers. Tubi, another key platform, achieved 27% revenue growth, driven by an 18% increase in total view time, and has reached profitability.

Segment Performance

Fox News sustained its strong ratings and audience momentum throughout the quarter, cementing its status as the most watched cable network in total day and in Primetime. The network's ad revenue reached a record high in the first quarter. The company's entertainment and news-based bundles are driving reduced subscriber erosion, a positive trend that is expected to continue.

Valuation and Outlook

With a P/E Ratio of 14.2 and an EV/EBITDA of 11.21, the company's valuation appears reasonable, considering its growth prospects. Analysts estimate next year's revenue growth at -0.4%, but the company's diversified revenue streams and cost management efforts are expected to drive continued profitability. The company's guidance for total company distribution revenue growth for the full year is positive, driven by the Cable segment. With a strong balance sheet and significant flexibility, Fox Corp is well-positioned to pursue M&A opportunities and drive long-term growth.

Cash Flow and Share Buyback

Free cash flow was negative $234 million in the quarter, but the company remains active with its share buyback program. The company will enter into a $1.5 billion accelerated share repurchase transaction, consisting of $700 million of Class A common stock and $800 million of Class B common stock, demonstrating its commitment to returning value to shareholders.

3. NewsRoom

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Fox Corporation Chief Financial Officer Steve Tomsic to Participate in Upcoming UBS Global Media and Communications Conference

Dec -01

Source: prnewswire.com

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.39%)

6. Segments

Television

Expected Growth: 2%

Fox Corporation's Television segment growth is driven by increasing demand for live sports and news, expansion of affiliate fees, and growth in retransmission consent revenue. Additionally, the company's focus on digital transformation, including the development of its streaming service, Fox Nation, and its investment in digital advertising, are expected to contribute to its growth.

Cable, Network Programming

Expected Growth: 3%

Fox Corporation's Cable and Network Programming segment growth is driven by increasing affiliate fees, robust advertising revenue, and expanding digital presence. Strong demand for live sports and news content, coupled with a growing subscriber base, contributes to the 3% growth rate.

Other, Corporate and Eliminations

Expected Growth: 1%

For Fox Corporation, the 'Other' segment's 1% growth is driven by increased affiliate revenue from Fox News and Fox Business. The 'Corporate' segment's growth is attributed to lower operating expenses and interest costs. Meanwhile, 'Eliminations' growth is due to the consolidation of intercompany transactions and the elimination of duplicate costs.

7. Detailed Products

Fox News Media

A 24-hour all-encompassing news service dedicated to delivering breaking news as well as political and business coverage.

Fox Sports

A leading sports media brand offering live sports events, news, and analysis across various platforms.

Fox Television Stations

A group of 29 owned-and-operated television stations across the United States, offering local news, sports, and entertainment programming.

Fox Broadcasting Company

A major American television network offering a range of programming including dramas, comedies, and reality TV shows.

National Geographic

A leading global media brand offering scientific, educational, and entertaining content across various platforms.

Fox Cable Networks

A collection of cable television networks offering a range of programming including sports, news, and entertainment.

8. Fox Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Fox Corporation operates in the media and entertainment industry, where there are limited substitutes for its products and services. However, the rise of streaming services and online content providers has increased the threat of substitutes, making it a medium-level threat.

Bargaining Power Of Customers

Fox Corporation's customers have limited bargaining power due to the company's strong brand presence and diversified product offerings. Additionally, the company's focus on niche markets and targeted advertising reduces the bargaining power of individual customers.

Bargaining Power Of Suppliers

Fox Corporation relies on a diverse range of suppliers, including content creators, talent agencies, and technology providers. While the company has some bargaining power due to its size and reputation, suppliers also have some leverage, particularly in the case of exclusive content deals.

Threat Of New Entrants

The media and entertainment industry is highly competitive, and new entrants can easily disrupt the market with innovative products and services. Fox Corporation faces a high threat of new entrants, particularly from tech companies and streaming services that are expanding into traditional media markets.

Intensity Of Rivalry

The media and entertainment industry is highly competitive, with many established players vying for market share. Fox Corporation faces intense rivalry from other major media companies, including Disney, Comcast, and AT&T, which can lead to pricing pressures, advertising wars, and talent poaching.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 40.99%
Debt Cost 4.24%
Equity Weight 59.01%
Equity Cost 7.90%
WACC 6.40%
Leverage 69.47%

11. Quality Control: Fox Corporation passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Nexstar Media

A-Score: 7.3/10

Value: 7.0

Growth: 8.2

Quality: 7.6

Yield: 7.0

Momentum: 7.0

Volatility: 6.7

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Fox

A-Score: 6.9/10

Value: 6.4

Growth: 7.9

Quality: 7.4

Yield: 2.0

Momentum: 9.5

Volatility: 8.0

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News Corp

A-Score: 5.9/10

Value: 5.5

Growth: 5.1

Quality: 7.4

Yield: 2.0

Momentum: 6.5

Volatility: 9.0

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TKO Group Holdings

A-Score: 5.5/10

Value: 2.6

Growth: 6.6

Quality: 6.3

Yield: 2.0

Momentum: 9.0

Volatility: 6.7

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Live Nation Entertainment

A-Score: 5.3/10

Value: 2.0

Growth: 8.3

Quality: 4.8

Yield: 0.0

Momentum: 8.5

Volatility: 8.3

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Endeavor Group Holdings

A-Score: 3.6/10

Value: 4.3

Growth: 3.8

Quality: 2.3

Yield: 0.0

Momentum: 5.0

Volatility: 6.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

69.01$

Current Price

69.01$

Potential

-0.00%

Expected Cash-Flows