Earnings analysis · 10-Q
FOXA earnings analysis
Filed May 11, 2026 · Our reading of the company's report
The latest report
Fox Corporation's Q3 2026 results show a significant decline in revenue and net income compared to the previous year, primarily due to a 24% decrease in advertising revenue stemming from the absence of a Super Bowl…
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Fox Corporation's Q3 2026 results show a significant decline in revenue and net income compared to the previous year, primarily due to a 24% decrease in advertising revenue stemming from the absence of a Super Bowl broadcast. Despite this, the company saw growth in the Cable Network Programming segment, contributing to slight gains in Distribution and Content revenues. Management anticipates continued revenue growth driven by sports and digital content initiatives.
Reported figures
- Earnings per share
- $1.02
- Segment
- Cable Network Programming
- Segment
- Television
What stood out
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Revenue Decline in Q3 2026
Total revenues decreased by $377 million or 9% to $3.994 billion compared to Q3 2025.
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Significant Net Income Drop
Net income fell 51% to $175 million for Q3 2026, down from $354 million in Q3 2025.
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Operating Expense Reduction
Operating expenses decreased by $471 million or 16% to $2.494 billion, primarily due to lower sports programming costs.
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Positive Segment Performance in Cable Programming
Cable Network Programming segment revenue grew by $105 million or 6% to $1.741 billion, driven by higher distribution and advertising revenues.
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Free Cash Flow Performance
Net cash provided by operating activities totaled $1.103 billion for the nine months ended March 31, 2026, although this is lower than the prior year's $1.811 billion.
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Increased Cash Reserves
Cash and cash equivalents were approximately $3.6 billion as of March 31, 2026.
What to watch
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Advertising Revenue Decline
Advertising revenues declined 24% or $480 million to $1.556 billion due to the absence of Super Bowl LIX.
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Pressure from Sports Programming Costs
Increased sports programming rights costs are anticipated, posing a potential risk for profitability.
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Overall Economic Concerns Impacting Revenue
Lower political advertising revenue due to the absence of the 2024 presidential elections contributed to the drop in revenue.
Management's outlook
Management anticipates revenue growth driven by advertising sales and higher demand for digital content.
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.