Fox Corp Reports Strong Q2 Earnings Beat Driven by Advertising Momentum
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4d ago
0mins
Should l Buy FOXA?
Source: seekingalpha
Fox Corp's stock fell 3.00% as it hit a 20-day low amid broader market weakness, with the Nasdaq-100 down 1.96% and the S&P 500 down 0.70%.
Despite the decline in stock price, Fox Corp reported strong second-quarter earnings, with revenue reaching $5.18 billion, exceeding expectations of $5.05 billion. The increase was driven by robust advertising demand, particularly in sports and news, and a notable rise in digital revenue from its Tubi streaming service. Additionally, the company announced a stock buyback program worth $1.55 billion, reflecting confidence in its financial position.
The strong earnings report highlights Fox's resilience in a challenging market environment, showcasing its ability to attract advertising revenue and maintain profitability. The stock's current dip may present a buying opportunity for investors looking to capitalize on the company's growth potential.
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Analyst Views on FOXA
Wall Street analysts forecast FOXA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for FOXA is 75.85 USD with a low forecast of 55.00 USD and a high forecast of 97.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
8 Buy
5 Hold
0 Sell
Moderate Buy
Current: 65.920
Low
55.00
Averages
75.85
High
97.00
Current: 65.920
Low
55.00
Averages
75.85
High
97.00
About FOXA
Fox Corporation produces and distributes news, sports, and entertainment content through its primary domestic brands, including FOX News Media, FOX Sports, FOX Entertainment, FOX Television Stations and Tubi Media Group. Its operating segments include Cable Network Programming, Television, Credible and the FOX Studio Lot. Cable Network Programming produces and licenses news and sports content distributed through traditional cable television systems, direct broadcast satellite operators and telecommunication companies, virtual multi-channel video programming distributors and other digital platforms. Television produces, acquires, markets and distributes programming through the FOX broadcast network, advertising supported video-on-demand service Tubi, approximately 29 full power broadcast television stations, including 11 duopolies, and other digital platforms. The FOX Studio Lot provides television and film production services. Credible is a United States consumer finance marketplace.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Fox Corp Stock Enters Oversold Territory
- Oversold Indicator Analysis: Fox Corp (FOXA) has an RSI of 27.4, falling below the 30 oversold threshold, indicating that the recent stock price decline may be nearing exhaustion, attracting investors looking for buying opportunities.
- Dividend Yield Opportunity: With a current share price of $67.73, FOXA's annualized dividend of $0.56 translates to an annual yield of 0.83%, providing significant yield potential for dividend investors, especially in light of the stock's recent decline.
- Market Comparison Analysis: Compared to the average RSI of 56.2 for dividend stocks covered by Dividend Channel, FOXA's significantly lower RSI indicates relative weakness in the market, potentially offering investors a favorable entry point.
- Dividend History Consideration: While dividends are not always predictable, analyzing FOXA's dividend history can assist investors in assessing the likelihood of future dividend sustainability, enabling more informed investment decisions.
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- Positive Market Reaction: Following the acquisition announcement, Silicon Labs' stock surged by 49%, indicating strong investor confidence in the deal and reflecting optimistic expectations for consolidation within the semiconductor industry.
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- Record Ad Revenue: Fox Corporation achieved record-breaking advertising revenue in Q2, particularly from Major League Baseball postseason and NFL events, reflecting a robust recovery in the advertising market and reinforcing the company's leadership position in the media industry.
- Strong Tubi Performance: Tubi delivered a 19% revenue growth in the quarter, with total view time up 27% year-over-year, achieving EBITDA profitability for the second consecutive quarter, indicating its growing competitiveness and appeal in the streaming market, which is expected to continue driving overall company performance.
- FOX One Subscriber Growth: FOX One's early user growth exceeded expectations, with management projecting low to mid-single-digit millions of subscribers over the next 3 to 4 years, demonstrating the effectiveness of the company's strategic positioning in digital platforms and enhancing confidence in future revenue growth.
- Financial Stability: Fox Corporation reported total revenues of $5.18 billion in Q2, a 2% increase year-over-year, and while adjusted EBITDA fell to $692 million compared to the prior year, the company maintained strong financial performance, showcasing effective strategies in cost management and revenue growth.
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Fox Corp Reports 2% Revenue Growth in Q2 2026
- Revenue Growth: Fox Corp's fiscal Q2 2026 revenue increased by 2% year-over-year to $5.18 billion, surpassing Wall Street's consensus estimate of $5.06 billion, indicating the company's stable performance in the media sector.
- Net Income Performance: Adjusted net income reached $360 million, or 82 cents per share, which, despite a decline from $442 million and 96 cents per share a year earlier, exceeded analysts' expectations of 50 cents, reflecting the company's resilience in profitability.
- Advertising Revenue Boost: Advertising revenue advanced 1.4% to $2.46 billion, primarily driven by higher pricing in sports and news, digital growth from the Tubi AVOD service, and additional MLB postseason games, although offset by lower political advertising revenues.
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Fox Reports Strong Q2 Earnings Beat Driven by Advertising Momentum
- Revenue Growth: Fox's total revenue for Q2 reached $5.18 billion, a 2% increase year-over-year, surpassing the market expectation of $5.05 billion, indicating strong momentum in advertising and distribution, particularly in sports and news pricing.
- Ad Revenue Increase: Advertising revenue rose by 1.4% year-over-year, driven by continued digital growth from the Tubi AVOD service and the impact of additional MLB postseason games, reflecting positive progress in the company's digital transformation efforts.
- Net Income Performance: Net income attributable to shareholders was $229 million, or $0.52 per share, lower than last year's $373 million and $0.81 per share; however, adjusted earnings of $0.82 per share exceeded Wall Street's expectation of $0.52, demonstrating resilience in profitability.
- Stock Buyback Program: During the quarter, Fox repurchased $750 million of Class A common stock and $800 million of Class B common stock, indicating the company's confidence in its stock value and potentially enhancing shareholder returns.
See More
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- Oversold Indicator Analysis: Fox Corp (FOXA) has an RSI of 27.4, falling below the 30 oversold threshold, indicating that the recent stock price decline may be nearing exhaustion, attracting investors looking for buying opportunities.
- Dividend Yield Opportunity: With a current share price of $67.73, FOXA's annualized dividend of $0.56 translates to an annual yield of 0.83%, providing significant yield potential for dividend investors, especially in light of the stock's recent decline.
- Market Comparison Analysis: Compared to the average RSI of 56.2 for dividend stocks covered by Dividend Channel, FOXA's significantly lower RSI indicates relative weakness in the market, potentially offering investors a favorable entry point.
- Dividend History Consideration: While dividends are not always predictable, analyzing FOXA's dividend history can assist investors in assessing the likelihood of future dividend sustainability, enabling more informed investment decisions.
See More
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- Acquisition Agreement: Texas Instruments is set to acquire Silicon Labs for $231 per share in an all-cash transaction valued at $7.5 billion, which not only boosts Silicon Labs' market valuation but also enhances Texas Instruments' competitive edge in the semiconductor sector.
- Positive Market Reaction: Following the acquisition announcement, Silicon Labs' stock surged by 49%, indicating strong investor confidence in the deal and reflecting optimistic expectations for consolidation within the semiconductor industry.
- Strong Earnings Performance: Silicon Labs reported an adjusted EPS of 56 cents for Q4, slightly above the consensus estimate of 55 cents, demonstrating stable financial performance that enhances the attractiveness of the acquisition.
- Industry Consolidation Trend: This acquisition represents a strategic move for Texas Instruments to expand its product line and signifies an acceleration in semiconductor industry consolidation, potentially triggering more similar deals that could reshape the market landscape.
See More
Latest Wall Street Rating Updates
- Goldman Sachs Reiterates Nvidia: Goldman Sachs maintains a Buy rating on Nvidia ahead of its earnings report, expecting investors to focus on visibility into 2027, non-traditional customer demand, and trends in the Chinese market, indicating strong market confidence in Nvidia's future growth.
- Benchmark Initiates Cava Rating: Benchmark initiates coverage of CAVA Group with a Buy rating and an $80 price target, reflecting its leadership position in the rapidly emerging Mediterranean dining market, which is expected to attract more investor interest in this burgeoning sector.
- BMO Capital Upgrades Brookfield: BMO upgrades Brookfield Asset Management from Market Perform to Outperform, citing attractive mid-teens distributable earnings growth prospects underpinned by continued fundraising momentum and fee rate resilience, showcasing the company's robust financial health.
- Bank of America Downgrades Qualcomm: Bank of America downgrades Qualcomm from Buy to Neutral, lowering the price target from $215 to $155 due to concerns over cyclical and structural weaknesses in the handset market, which may adversely affect its future performance.
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Fox Corporation Q2 2026 Earnings Highlights
- Record Ad Revenue: Fox Corporation achieved record-breaking advertising revenue in Q2, particularly from Major League Baseball postseason and NFL events, reflecting a robust recovery in the advertising market and reinforcing the company's leadership position in the media industry.
- Strong Tubi Performance: Tubi delivered a 19% revenue growth in the quarter, with total view time up 27% year-over-year, achieving EBITDA profitability for the second consecutive quarter, indicating its growing competitiveness and appeal in the streaming market, which is expected to continue driving overall company performance.
- FOX One Subscriber Growth: FOX One's early user growth exceeded expectations, with management projecting low to mid-single-digit millions of subscribers over the next 3 to 4 years, demonstrating the effectiveness of the company's strategic positioning in digital platforms and enhancing confidence in future revenue growth.
- Financial Stability: Fox Corporation reported total revenues of $5.18 billion in Q2, a 2% increase year-over-year, and while adjusted EBITDA fell to $692 million compared to the prior year, the company maintained strong financial performance, showcasing effective strategies in cost management and revenue growth.
See More
Fox Corp Reports 2% Revenue Growth in Q2 2026
- Revenue Growth: Fox Corp's fiscal Q2 2026 revenue increased by 2% year-over-year to $5.18 billion, surpassing Wall Street's consensus estimate of $5.06 billion, indicating the company's stable performance in the media sector.
- Net Income Performance: Adjusted net income reached $360 million, or 82 cents per share, which, despite a decline from $442 million and 96 cents per share a year earlier, exceeded analysts' expectations of 50 cents, reflecting the company's resilience in profitability.
- Advertising Revenue Boost: Advertising revenue advanced 1.4% to $2.46 billion, primarily driven by higher pricing in sports and news, digital growth from the Tubi AVOD service, and additional MLB postseason games, although offset by lower political advertising revenues.
- Stock Buyback Program: Fox repurchased approximately $750 million of Class A common stock and $800 million of Class B common stock during the quarter, demonstrating confidence in its stock value while also declaring a dividend of 28 cents per share to enhance shareholder returns.
See More
Fox Reports Strong Q2 Earnings Beat Driven by Advertising Momentum
- Revenue Growth: Fox's total revenue for Q2 reached $5.18 billion, a 2% increase year-over-year, surpassing the market expectation of $5.05 billion, indicating strong momentum in advertising and distribution, particularly in sports and news pricing.
- Ad Revenue Increase: Advertising revenue rose by 1.4% year-over-year, driven by continued digital growth from the Tubi AVOD service and the impact of additional MLB postseason games, reflecting positive progress in the company's digital transformation efforts.
- Net Income Performance: Net income attributable to shareholders was $229 million, or $0.52 per share, lower than last year's $373 million and $0.81 per share; however, adjusted earnings of $0.82 per share exceeded Wall Street's expectation of $0.52, demonstrating resilience in profitability.
- Stock Buyback Program: During the quarter, Fox repurchased $750 million of Class A common stock and $800 million of Class B common stock, indicating the company's confidence in its stock value and potentially enhancing shareholder returns.
See More
