Fox Stock Jumps 4% After Crushing Q1 Earnings Estimates – Time to Buy?

TLDR

• Fox Q1 CY2026 revenue came in at $3.99 billion, down 8.6% year on year but beat estimates by 4.7%
• Adjusted EPS of $1.32 smashed analyst expectations of $0.97 by 36.4%
• Adjusted EBITDA hit $954 million, beating Wall Street’s $741.9 million estimate by 28.6%
• Operating margin jumped to 23.9%, up from 17.4% in the same quarter last year
• FOXA stock rose 4.3% to $65.64 immediately after the results

Fox Corporation posted Q1 CY2026 results that cleared Wall Street’s bar on almost every major metric. The stock climbed 4.3% to $65.64 right after the report dropped.

Revenue came in at $3.99 billion, a beat of 4.7% versus analyst estimates of $3.81 billion. That said, sales were still down 8.6% compared to the same quarter last year.

The bigger story was on the profit side. Adjusted EPS landed at $1.32, well above the consensus estimate of $0.97 — a 36.4% beat.

Fox Corporation, FOX

Adjusted EBITDA came in at $954 million against expectations of $741.9 million, a 28.6% beat. That’s a wide margin by any measure.

Operating margin for the quarter was 23.9%, up 6.5 percentage points from 17.4% in Q1 last year. The improvement is notable given that revenue actually fell — Fox pulled it off by cutting costs.

Advertising and Affiliate Revenue

Fox’s two main revenue segments are Advertising, which makes up 39% of total revenue, and Affiliate (licensing and retransmission fees), which accounts for 52.8%.

Over the past two years, Advertising revenue has averaged 14% year-on-year growth. Affiliate revenue, by contrast, has been flat over the same period.

Strong advertising demand from sports and news programming drove the beat this quarter. Tubi, Fox’s free streaming service, also contributed to improved sentiment around the stock.

Earnings Per Share and Outlook

Adjusted EPS of $1.32 was up from $1.10 in the same quarter last year, a solid year-on-year improvement.

Over the last five years, Fox’s EPS grew at a compounded annual rate of 11.6%. That’s outpaced its revenue growth over the same stretch.

Wall Street now expects full-year EPS of $4.92, representing 11% growth over the next 12 months.

On the revenue side, analysts project 5.5% growth over the next year. That’s a slight slowdown compared to the 7.9% annualized growth Fox posted over the past two years.

Free cash flow margin held steady at 44.2%, roughly in line with the same quarter last year.

Fox’s year-to-date price performance still sits at -12.36% heading into this report. The market cap stands at $25.35 billion.

Following the earnings print, analysts are expected to reassess price targets to reflect the stronger-than-expected performance.

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