10-QPeriod: Q3 FY2026

Fox Corp Quarterly Report for Q3 Ended Mar 31, 2026

Filed May 11, 2026For Securities:FOXAFOX

Summary

Fox Corporation (FOXA) reported its fiscal third-quarter results for the period ending March 31, 2026, showing a year-over-year decline in both revenue and net income. Total revenues decreased by 9% to $3.99 billion, primarily driven by a significant 24% drop in advertising revenue, largely attributed to the absence of the Super Bowl LIX broadcast and lower ratings. This was partially offset by growth in distribution and content revenues. Despite the revenue dip, the company managed to decrease operating expenses by 16% due to lower sports programming rights amortization costs related to the absence of the Super Bowl. However, net income attributable to stockholders fell 52% to $166 million. The "Corporate and Other" segment saw a substantial increase in revenue but also a significant widening of its Segment EBITDA loss, largely due to costs associated with the launch of the "Fox One" direct-to-consumer streaming service. The company maintained a strong liquidity position with $3.6 billion in cash and cash equivalents and an undrawn $1.0 billion revolving credit facility.

Financial Highlights

47 data points
Beta

Revenue

$3.99B

Net Income

$166.00M

4.2% Net Margin

EPS (Diluted)

$0.38

Total Assets

$21.78B

Cash & Equivalents

$3.60B

Free Cash Flow

$1.77B

Financial Statements
Beta
Revenue$3.99B
SG&A Expenses$546.00M
Net Income$166.00M
EPS (Basic)$0.39
EPS (Diluted)$0.38
Shares Outstanding (Basic)424.00M
Shares Outstanding (Diluted)432.00M

Key Highlights

  • 1Total revenues decreased 9% to $3.99 billion for the quarter, primarily due to a 24% decline in advertising revenue, notably impacted by the absence of Super Bowl LIX.
  • 2Operating expenses decreased 16% to $2.49 billion, largely driven by lower sports programming rights amortization, which benefited from the lack of Super Bowl LIX in the current year's comparable period.
  • 3Net income attributable to Fox Corporation stockholders significantly decreased by 52% to $166 million compared to the prior year's quarter.
  • 4The Cable Network Programming segment showed modest revenue growth of 6%, with Segment EBITDA up 1%, driven by higher distribution and advertising revenues, though operating expenses increased due to sports rights.
  • 5The Television segment experienced a substantial revenue decline of 19%, with advertising revenue down 30%. However, Segment EBITDA saw a significant increase of 131% due to a larger decrease in operating expenses, primarily from reduced sports programming costs.
  • 6The "Corporate and Other" segment reported a substantial increase in revenue to $152 million from $58 million, but its Segment EBITDA loss widened significantly to ($121) million from ($82) million, reflecting costs associated with the launch of the "Fox One" streaming service.
  • 7The company maintained a healthy liquidity position with $3.6 billion in cash and cash equivalents and an undrawn $1.0 billion revolving credit facility.

Frequently Asked Questions

The significant drop in net income was primarily due to a substantial decrease in income before income tax expense, which was influenced by a large $341 million increase in "Non-operating other, net" and a $238 million decrease in operating income, largely driven by lower advertising revenues and the absence of the Super Bowl LIX broadcast.

The launch of "Fox One" is contributing to increased expenses within the "Corporate and Other" segment. While this segment saw revenue growth, its Segment EBITDA loss widened significantly, primarily due to intercompany content and marketing costs associated with the new direct-to-consumer streaming service.

Advertising revenue saw a significant decline of 24% for the quarter, largely due to the absence of Super Bowl LIX and lower ratings. While digital growth and other NFL games provided some offset, the reliance on major sporting events for advertising revenue is evident. Investors should monitor how the company plans to mitigate the impact of fewer major events in future periods.

Fox Corporation maintains a strong liquidity position with approximately $3.6 billion in cash and cash equivalents as of March 31, 2026. Additionally, it has access to an undrawn $1.0 billion unsecured revolving credit facility, providing financial flexibility for operations and strategic initiatives.