Fox Corp delivered record fiscal 2026 revenue and EBITDA, powered by live sports, news, and Tubi’s rapid growth. The stock looks attractively valued with strong cash generation, but event-driven results and rising rights costs warrant a measured Buy.
Investment thesis: Fox Corp Class A (FOXA) combines durable live-news and sports assets with a growing digital portfolio, while trading at 17.2x trailing earnings, 11.5x forward earnings, and an 8.9% free-cash-flow yield. The moderate-risk case rests on $17.13B of fiscal 2026 revenue, $3.91B of adjusted EBITDA, $2.47B of free cash flow in the core cash-flow dataset, and an analyst target of $75.33 versus a quoted price of $65.94.
The business delivered record annual revenue and EBITDA in fiscal 2026. Revenue increased 5% to $17.13B, while EBITDA rose 8% to $3.9B. Adjusted EPS reached $5.42, up 13% from $4.78, even as reported EPS declined to $3.84 from $4.91 because of noncore items and a difficult comparison.
The main risk is that exceptional event revenue can make a steady media company look like a growth stock for a quarter. The 2026 FIFA Men's World Cup drove a 78% increase in fourth-quarter advertising revenue, while sports rights and production costs also lifted expenses. FOXA therefore deserves a measured Buy rather than an aggressive growth label. The report's fair value estimate of $68 gives the stock credit for Tubi, FOX One, strong cash generation, and the Roku transaction without assuming flawless execution.
Institutional activity is constructive, with 18 tracked institutions increasing positions versus 2 decreasing positions. Insider activity is less supportive: the latest insider dataset shows net selling of 1.9 million shares, including sales by Lachlan Murdoch and John Nallen in March 2026. That combination favors disciplined position sizing.
Fox Corporation operates in news, sports, and entertainment, with 10,550 employees and headquarters in New York. FOXA began trading on Nasdaq on March 12, 2019, after the separation from Twenty-First Century Fox. Its core reportable segments are Cable Network Programming and Television.
Cable Network Programming produces and licenses news and sports content for traditional pay-TV operators, virtual distributors, and digital platforms. Television includes the FOX broadcast network, 29 full-power broadcast stations, Tubi, production companies, and other digital platforms. The 2026 10-K also identifies Credible, a consumer finance marketplace, and the FOX Studio Lot as operating activities.
The economic model has two primary engines: advertising and distribution fees. Advertising monetizes audiences across broadcast, cable, local stations, Tubi, and digital products. Distribution revenue comes from affiliate and carriage relationships. This mix gives FOXA more than one way to monetize the same audience, although both engines remain exposed to audience fragmentation and changing media budgets.
Cable Network Programming generated $7.35B of fiscal 2026 revenue, representing 43.2% of company revenue. Segment EBITDA was $3.10B, up 2%. Distribution revenue reached $4.66B, up 5%, while advertising revenue reached $1.69B, up 10%. The segment remains the primary cash engine because FOX News and sports channels produce valuable recurring distribution fees.
The segment also shows the cost of defending that position. In the fourth quarter, revenue increased 9% to $1.67B, but EBITDA declined 3% to $728M. Advertising revenue rose 22% and distribution revenue rose 7%, while expenses increased 20% because of World Cup rights amortization and production costs. Third-party distributor subscribers declined by under 6.5%, but affiliate pricing gains exceeded that decline.
Television generated $9.67B of fiscal 2026 revenue, or 56.8% of the company total. Segment EBITDA reached $1.44B, up 52%. Advertising revenue rose 6% to $5.65B, while distribution revenue remained essentially flat at $3.35B. The segment carries more event sensitivity than Cable, but it also houses Tubi and the FOX broadcast network, giving it the strongest digital growth exposure.
Fourth-quarter Television revenue increased 45% to $2.48B, and segment EBITDA increased 129% to $705M. Advertising revenue rose 108% to $1.46B, supported by the World Cup, political advertising, and Tubi. This was an excellent quarter, but the size of the event contribution makes a straight-line extrapolation dangerous. Media businesses have a habit of making calendar timing look like operational genius.
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Tubi is FOXA's clearest flagship growth product. Tubi delivered its highest-revenue and most-streamed quarter in fiscal 2026, with fourth-quarter revenue growth of 35% and total viewing time growth of 17%. The platform ended the fiscal year with 110 million monthly active users.
Tubi's customer mix gives it a useful advertising position. Management said close to 70% of viewers are cord-nevers or cord-cutters, and approximately 96% of viewing is video on demand. The World Cup Hub attracted more than 20 million viewers, while two simulcast matches produced two of the platform's highest-traffic days.
FOX One is the complementary subscription product. Management described its subscribers as incremental, with minimal cannibalization of traditional pay-TV customers and churn below expectations. FOX One also benefited from World Cup customer acquisition. Tubi supplies advertising scale, while FOX One packages live news and sports into a direct relationship with consumers.
FOXA's advantage is a combination of scarce live rights, trusted brands, and cross-platform distribution. The company used its broadcast network, stations, FOX Sports, FOX News, FOX One, Tubi, and digital assets to distribute the 104-match World Cup. Management said FOX ranked first among networks in live-event sports consumption during fiscal 2026.
FOX News adds a separate audience moat. Management said FOX News was the most-watched cable network in total day and prime time during the fourth quarter and fiscal year, with market share ahead of competitors combined. The company also added 400 advertisers to FOX News Media during the year, supporting record revenue for the division.
The announced Roku transaction is the largest strategic extension of this model. Under the June 14, 2026 agreement, FOX would pay $96 in cash and 0.9693 FOX Class A shares for each Roku share. Management expects closing in the first half of calendar 2027. Roku would add connected-TV distribution and advertising capabilities, but the transaction also introduces financing, integration, and execution risk.
For FOXA, the supply chain is built around content rights, production capacity, advertising sales, and distribution access rather than physical inventory. The World Cup required thousands of employees across preparation, promotion, production, marketing, and ad sales. That operating capability allowed FOXA to place the same event across broadcast, cable, stations, Tubi, FOX One, and other digital products.
Sports rights are the largest operating pressure point. Fiscal 2026 expenses increased 4% for the year and 28% in the fourth quarter, driven by World Cup rights, production costs, FOX One costs, and higher digital content costs. The NFL relationship extends through the 2029 season, and management said contractual terms will not change until the 2030 season.
Working capital can move sharply around major events. Fourth-quarter free cash flow was $726M because World Cup rights payments occurred in fiscal 2026 while advertising receivables were collected early in fiscal 2027. Full-year operating cash flow was $1.97B, with capital expenditures of $502M.
The broadcasting and cable television market remains large but mature. Mordor Intelligence estimated the market at $401.15B in 2026 and $507.40B by 2031, implying a 4.8% compound annual growth rate. The adjacent over-the-top market was estimated at $400.51B in 2026 and $612.61B by 2031, implying an 8.9% compound annual growth rate.
Those figures describe FOXA's strategic tension. Traditional distribution remains profitable, but faster growth sits in connected TV, streaming, and targeted advertising. Gartner reported that digital media represented more than two-thirds of total media investments in 2026. FOXA's Tubi and planned Roku combination address that shift without abandoning the cash flow produced by cable and broadcast.
Sports is the market's scarce inventory. Mordor identified sports as the fastest-growing content genre in its broadcasting and cable framework. FOXA's World Cup results, NFL relationship, MLB exposure, NASCAR programming, and Big Ten rights place the company in the premium live-content lane rather than the general entertainment streaming race.
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FOXA serves three customer groups: viewers, advertisers, and distributors. Viewers consume live sports, news, broadcast programming, and Tubi's on-demand library. Advertisers buy access to those audiences across national, local, cable, and connected-TV inventory. Distributors pay for FOX programming through traditional and virtual pay-TV agreements.
Advertisers value FOXA's ability to deliver large live audiences. Management reported double-digit upfront volume growth across sports, news, and Tubi, with eight of ten tracked advertising categories showing strong upfront results. The 2026 World Cup and the upcoming midterm political cycle give FOXA additional premium inventory.
Tubi serves a different customer profile from traditional pay-TV. Nearly 70% of its viewers are cord-cutters or cord-nevers, and the platform's 110 million monthly active users provide reach outside the traditional bundle. FOX One adds direct subscribers while management reports minimal churn from the traditional MVPD base.
At the national broadcast level, FOXA competes with CBS and Paramount, NBC and Comcast, and ABC and Disney. In local stations, the competitive set includes Nexstar Media Group, Gray Media, Sinclair Broadcast Group, and TEGNA. FOX News competes with CNN, MSNBC, NewsNation, and Newsmax, while Tubi and FOX One compete for attention and advertising budgets with Netflix, Disney+, Hulu, Peacock, Paramount+, YouTube, and social platforms.
FOXA's relative strength is its concentration in live, ad-supported content. Sports and news are appointment-driven categories, while Tubi adds on-demand inventory. That mix differs from subscription-heavy entertainment companies that rely more heavily on scripted libraries and recurring consumer subscriptions.
The principal weakness is structural exposure to linear television. FOXA reported third-party distributor subscriber declines of under 6.5% in the fourth quarter, even though pricing gains supported distribution revenue. Sports rights also create a competitive disadvantage when leagues demand higher fees faster than advertising and affiliate revenue can grow.
Advertising is the main macro variable. Management described the advertising market as strong across sports, news, local stations, Tubi, and entertainment, while fiscal 2026 companywide advertising revenue increased 7%. That strength supports FOXA's near-term earnings, but advertising remains more cyclical than distribution revenue.
Political advertising is a meaningful event-driven tailwind. Independent tracking firms estimated more than $11B of political advertising for the upcoming midterm election. FOXA generated more than $400M of political revenue in the 2024 presidential election and more than $260M in the prior midterm cycle. Management expects the upcoming midterm cycle to exceed the prior midterm result.
The macro counterweight is the migration of ad budgets toward digital and connected TV. Gartner's estimate that digital media accounted for more than two-thirds of media investments in 2026 reinforces the need for Tubi and Roku to scale. FOXA's exposure to news and sports also makes regulatory, licensing, and public-policy developments relevant to long-term operations, particularly as the company expands its digital distribution footprint.
Foxa’s balance sheet earns an A- thanks to strong liquidity and cash generation, with the report highlighting $2.47B of free cash flow in the core dataset.
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Get Full Access →Revenue rose 5% to $17.13B in fiscal 2026 while adjusted EPS climbed 13% to $5.42, showing solid operating momentum despite noncore items weighing on reported EPS.
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Get Full Access →The report points to $17.13B of fiscal 2026 revenue and $3.91B of adjusted EBITDA, suggesting analysts expect Fox to keep converting live events and distribution fees into growth.
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Get Full Access →At 17.2x trailing earnings, 11.5x forward earnings, and an 8.9% free-cash-flow yield, FOXA screens as reasonably priced for a business with durable cash generation.
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Get Full Access →The report’s fair value estimate of $68 sits below the $75.33 analyst target, reflecting upside from Tubi and FOX One but caution around event-driven revenue.
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Get Full Access →FOXA is a cash-generative media company navigating a difficult industry with unusually valuable live content. Fiscal 2026 provided the evidence: revenue reached $17.13B, adjusted EPS reached $5.42, EBITDA reached $3.91B, and Tubi reached 110 million monthly active users. The company also returned $2B through buybacks and $243M through dividends.
The investment case depends on FOXA converting live sports and news leadership into durable digital monetization. Tubi's 35% quarterly revenue growth and FOX One's incremental subscribers support that direction. The Roku transaction could widen FOXA's connected-TV reach, but its financing and integration requirements raise the standard for execution.
At $65.94, the stock offers a balanced risk-reward profile rather than a deep bargain. The recommended Buy rating and $68 fair value estimate reflect strong cash flow, a healthy current ratio, consistent earnings beats, and valuable brands, tempered by cord-cutting, sports-rights costs, advertising cyclicality, and net selling by insiders.
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Fox’s Roku deal looks ugly to the market because it adds real dilution and execution risk, but the harsher truth is that doing nothing was the bigger risk. A business with falling quarterly ad revenue in legacy TV had to buy distribution, and the selloff may be punishing the timing more than the logic.
Fox combines scarce live sports and news assets with strong cash generation, but event-driven volatility and linear-TV exposure keep the stock in Hold territory.
Fox Corporation (FOXA) falls sharply after announcing a $22 billion cash-and-stock acquisition of Roku. The deal expands Fox’s streaming and ad-tech reach, but investors are focused on dilution, integration risk, and the size of the transaction relative to Fox’s market value.