10-KPeriod: FY2026

Fox Corp Annual Report, Year Ended Jun 30, 2026

Filed August 6, 2026For Securities:FOXAFOX

Summary

Fox Corporation (FOXA) has reported its fiscal year 2026 results, marked by a significant strategic move with the announcement of its agreement to acquire Roku, Inc. This acquisition, valued at approximately $96.00 per Roku share in a mix of cash and FOX Class A Common Stock, is expected to be a transformative event for the company, aiming to bolster its presence in the streaming and connected TV landscape. Financially, FOXA demonstrated revenue growth driven by its Cable Network Programming and Television segments, with distribution and advertising revenues being key contributors. The company also continued its commitment to shareholder returns, repurchasing approximately $2 billion in stock during fiscal year 2026 and paying dividends, while maintaining a strong liquidity position with $4.2 billion in cash and cash equivalents. Despite the overall revenue growth, net income saw a notable decrease of 25% compared to the prior year, primarily impacted by a change in the fair value of investments and a substantial increase in interest expense, net. The company faced increased operating expenses, partly due to the launch of its direct-to-consumer streaming service, FOX One. Looking ahead, FOXA remains focused on its core strengths in news, sports, and entertainment, aiming to leverage its premium brands and expand its digital offerings, all while navigating a dynamic media industry and the integration of the significant Roku acquisition.

Key Highlights

  • 1Announced a definitive agreement to acquire Roku, Inc. for a combination of cash and FOX Class A Common Stock, aiming to expand its digital footprint and streaming capabilities.
  • 2Reported total revenues of $17.126 billion for fiscal year 2026, a 5% increase from fiscal year 2025, driven by growth in both distribution and advertising.
  • 3Cable Network Programming segment revenue increased by 6% to $7.348 billion, with Segment EBITDA up 2% to $3.099 billion.
  • 4Television segment revenue grew 4% to $9.666 billion, with a significant 52% increase in Segment EBITDA to $1.438 billion.
  • 5Net income attributable to Fox Corporation stockholders decreased by 26% to $1.685 billion, impacted by investment fair value changes and increased interest expense.
  • 6Maintained a strong liquidity position with $4.2 billion in cash and cash equivalents as of June 30, 2026.
  • 7Returned approximately $2.3 billion to stockholders through dividends and stock repurchases, including a $1.5 billion accelerated share repurchase program in fiscal year 2026.

Frequently Asked Questions

The acquisition of Roku is a major strategic initiative aimed at significantly expanding Fox Corp's reach in the fast-growing streaming and connected TV market. By combining Fox's content and Tubi's AVOD service with Roku's leading platform, data, and audience relationships, Fox Corp aims to create a more robust and competitive digital media ecosystem. This move is expected to enhance its ability to engage with a wider audience, generate new revenue streams through advertising and subscriptions, and solidify its position in a rapidly evolving media landscape.

Fox Corp's total revenues increased by 5% to $17.126 billion in fiscal year 2026, driven by strong performance in both its Cable Network Programming and Television segments. Distribution and advertising revenues were the primary drivers of this growth. However, net income attributable to Fox Corporation stockholders saw a significant decline of 26% to $1.685 billion. This decrease was largely attributed to unfavorable changes in the fair value of investments and a notable increase in interest expenses, alongside higher operating expenses related to new service launches.

The primary risks associated with the pending Roku acquisition include the possibility that the transaction may not be completed due to failure to satisfy closing conditions, such as obtaining necessary regulatory and stockholder approvals. There are also significant financial risks, including potential negative market reactions, substantial transaction and integration costs, increased debt levels for Fox Corp, and potential business disruptions. If the merger is delayed or fails, Fox Corp could face substantial termination fees and adverse impacts on its business and stock price. Furthermore, the successful integration of Roku's business and realization of anticipated synergies present significant operational challenges.

Fox Corp is actively adapting to the shift in consumer behavior by expanding its digital distribution offerings and direct engagement with consumers. Key initiatives include the growth of its AVOD service, Tubi, which has seen significant increases in total view time and user engagement. The company also launched its direct-to-consumer subscription streaming service, FOX One, to cater to 'cord-cutters' and 'cord-nevers.' The proposed acquisition of Roku is a significant step in this strategy, aiming to integrate a leading connected TV platform and further enhance its digital presence. Fox Corp is also investing in its digital properties across its news, sports, and entertainment brands.