8-K: Fox Reports Strong Q1 FY26, Announces $1.5B Share Buyback

Fox Corporation reported strong first-quarter fiscal 2026 results with revenues of $3.74 billion and announced a $1.5 billion accelerated share repurchase transaction.

Summary

• Total revenues for the quarter ended September 30, 2025, were $3.74 billion, an increase of 5% ($174 million) from the prior year quarter.
• Net income was $609 million, down from $832 million in the prior year quarter.
• Net income attributable to Fox Corporation stockholders was $599 million ($1.32 per share), compared to $827 million ($1.78 per share) in the prior year quarter.
• Adjusted net income attributable to Fox Corporation stockholders was $686 million ($1.51 per share), an increase from $672 million ($1.45 per share) in the prior year quarter.
• Adjusted EBITDA was $1.07 billion, an increase of 2% ($17 million) from the prior year quarter.
• Distribution revenues increased 3%, advertising revenues increased 6%, and content and other revenues increased 12%.
• The company announced a $1.5 billion accelerated share repurchase transaction, comprising $700 million of Class A Common Stock and $800 million of Class B Common Stock, expected to commence on October 31, 2025, and complete in the second half of fiscal 2026.

Sentiment

Score: 7

Explanation: The company reported solid revenue and adjusted EBITDA growth, driven by strong advertising and digital performance. The significant share repurchase program indicates strong management confidence and commitment to shareholder returns, despite a decline in reported net income due to non-operating factors.

Positives

• Total revenues increased 5% to $3.74 billion, demonstrating overall business growth.
• Adjusted EBITDA increased 2% to $1.07 billion, indicating improved operational profitability.
• Advertising revenues grew 6%, driven by continued digital growth from the Tubi AVOD service, stronger news pricing, and higher sports pricing and ratings led by the NFL.
• Content and other revenues increased significantly by 12%, primarily due to higher entertainment content revenues.
• Cable Network Programming segment EBITDA increased 7% to $800 million, driven by revenue growth and partially offset by higher expenses.
• Television segment EBITDA increased 7% to $399 million, also due to revenue growth despite higher expenses.
• The announcement of a $1.5 billion accelerated share repurchase transaction underscores management's confidence in the company's financial strength and commitment to creating shareholder value.
• Management noted strong operating momentum carrying through from a record Fiscal 2025 into Fiscal 2026, with continued engagement growth across the portfolio.

Negatives

• Reported net income decreased to $609 million from $832 million in the prior year quarter.
• Net income attributable to Fox Corporation stockholders decreased to $599 million ($1.32 per share) from $827 million ($1.78 per share) in the prior year quarter.
• Lower political advertising revenues partially offset the overall growth in advertising revenues.
• Higher expenses, primarily due to increased digital marketing and content costs and higher entertainment programming rights amortization, partially offset revenue gains.
• Net cash used in operating activities was $130 million, a decrease from $158 million provided in the prior year quarter.
• Cash and cash equivalents decreased by $983 million during the quarter, ending at $4.368 billion.

Risks

• Actual results may vary materially from forward-looking statements due to changes in economic, business, competitive, technological, strategic, and/or regulatory factors.
• Operating performance is highly contingent on many factors, including customer tastes and preferences, which can impact future results.

Future Outlook

Management expresses confidence in the positive outlook for FOX, citing strong operating momentum, continued audience engagement growth, and robust advertising demand across sports, news, entertainment, and Tubi. The company anticipates completing the $1.5 billion accelerated share repurchase transaction during the second half of fiscal 2026.

Management Comments

• "Coming off a record Fiscal 2025, our strong operating momentum has carried through the first quarter of Fiscal 2026."
• "We are delivering for audiences with continued engagement growth across the portfolio which underpins the robust advertising demand we are seeing across sports, news, entertainment and Tubi."
• "The quality of our assets and their consistent capacity to deliver financially gives me great confidence in the positive outlook for FOX."
• "This morning's announcement to leverage the strength of our balance sheet with a $1.5 billion accelerated share repurchase transaction clearly underscores this confidence along with our commitment to creating value for our shareholders."

Industry Context

The results indicate a strong performance in a competitive media landscape, particularly highlighting growth in digital advertising (Tubi) and traditional sports/news segments. The increase in advertising revenues, despite lower political advertising, suggests resilience and effective monetization strategies in key content areas like NFL and news. The significant share repurchase signals a mature company with strong cash flow returning capital to shareholders, a common practice in established media companies.

Comparison to Industry Standards

• NA

Stakeholder Impact

• Shareholders: Positive impact due to the $1.5 billion accelerated share repurchase transaction, which is expected to enhance shareholder value and reduce share count.
• Customers/Audiences: Continued engagement growth across the portfolio suggests positive reception of content and services.
• Advertisers: Robust advertising demand across sports, news, entertainment, and Tubi indicates strong platform value and reach.

Next Steps

• Commencement of a $1.5 billion accelerated share repurchase transaction on October 31, 2025.
• Completion of the accelerated share repurchase transaction during the second half of fiscal 2026.

Key Dates

Recommendation

The company demonstrated solid operational performance with revenue and adjusted EBITDA growth, particularly in advertising and digital segments. The announcement of a $1.5 billion accelerated share repurchase program signals management's confidence and commitment to returning capital to shareholders, which is a positive catalyst. However, the reported GAAP net income declined year-over-year, and while adjusted metrics are up, a seasoned investor would weigh the overall financial picture. Given the mixed signals (strong operational growth vs. GAAP net income decline) and the current competitive media landscape, a 'hold' recommendation is prudent, awaiting further clarity on sustained profitability and long-term growth drivers beyond share repurchases.

Keywords

Fox Corporation, FOXA, FOX, Earnings, Financial Results, Q1 2026, Revenue, EBITDA, Share Repurchase, Media, Entertainment, Cable Network, Television, Advertising, Tubi, NFL, News