Fox Corporation: 3 Key Takeaways for Long-Term Investors
On its earnings call held on Nov. 2, 2026, to review its fiscal year 2027 first quarter ended Sept. 30, Fox Corporation (FOXA -0.76%) announced top-line revenue growth of 22% to $4.6 billion alongside record quarterly EBITDA, or earnings before interest, taxes, depreciation, and amortization. The network is expanding its direct-to-consumer digital services to capture audience shifts as traditional pay-television subscriptions decline. Three things management said on the call stand out.
1. Direct-to-Consumer Streaming Gains Offset Traditional Cable Losses
Fox 1, the company’s subscription streaming service, is attracting viewers who do not buy traditional cable packages. That gives the service high incremental value because new sign-ups bring in fresh revenue without cannibalizing existing pay-television affiliate fees.
The most pleasing aspect of this is the fact that the subscribers are almost entirely incremental to our subscriber base.
— Lachlan Keith Murdoch, Executive Chair and Chief Executive
2. Tubi Drives Streaming Ad Sales Toward Long-Term Profit Margins
Tubi, the company’s ad-supported streaming platform, increased revenue 35% year over year as total viewing time expanded 23%. Management expects structural profitability to follow as ad revenues scale across its cord-cutting audience.
And margins… we have said many times before, we think it will be a 20% range margin business once it reaches further maturity.
— Lachlan Keith Murdoch, Executive Chair and Chief Executive
3. Live Sports and Midterm Elections Push Political Ad Sales to Records
Political ad spending reached record levels across local television stations, Tubi, and national sports networks. Live broadcasts like the FIFA Men’s World Cup provided high-demand programming that supported overall advertising pricing power.
More broadly across our businesses, political advertising has surpassed $350 million, a record for a midterm cycle.
— Lachlan Keith Murdoch, Executive Chair and Chief Executive
Looking Ahead
Operational momentum is accelerating across broadcast and digital assets, backed by $4.5 billion in cash. Management is prioritizing sports rights discipline, streaming engagement, and affiliate pricing power.
The strong momentum we saw throughout our fiscal 2026 has continued unabated into the first quarter of fiscal 2027, highlighted by total revenue growth of 22% and record quarterly EBITDA of $1.64 billion.
— Steven Tomsic, Chief Financial Officer
Fox plans to resume share repurchases this quarter while navigating pay-television shifts through its direct-to-consumer platforms.
After a record fiscal year 2026 and first quarter 2027, fiscal 2027 will once again demonstrate our differentiated strategy, the quality of our assets, our ability to deliver both on-screen and financially, and the strength of our balance sheet, all while creating value for our shareholders in a deliberate and disciplined manner.
— Lachlan Keith Murdoch, Executive Chair and Chief Executive
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