FOX · Earnings call · 2026Q2T · Full report
Margin and Expense Drivers
Fox Corp · 2026-08-06 · Importance 58 · Surprise 56 · No source text
Fiscal fourth-quarter EBITDA increased 27% to $1.2 billion, while adjusted EPS rose 41% to $1.79 from $1.27 in the prior-year quarter.Total expenses increased 28% in the quarter, primarily because of higher sports programming rights amortization and production costs associated with the World Cup and costs related to FOX One.Fiscal 2026 expenses increased 4%, mainly due to World Cup rights and production costs, FOX One first-year costs and higher digital content costs.Fiscal 2026 adjusted EPS increased 13% to $5.42 from $4.78, despite comparisons against a prior year that benefited from the Super Bowl and presidential election cycle.
Key facts
- Fiscal fourth quarter EBITDA improved 27% to $1.2 billion.
- Quarterly expenses increased 28%, driven by higher sports programming rights amortization and production costs led by the World Cup as well as costs associated with the growth of FOX One.
- Revenue growth at the Cable segment was more than offset by a 20% increase in expenses, primarily attributable to an increase in sports programming rights amortization and production costs led by the World Cup.
- Total expenses increased 4% in fiscal 2026, mainly due to World Cup rights and production costs, FOX One first year costs and higher digital content costs.
- Fiscal 2026 EBITDA grew 8% to a record $3.9 billion.
- Excluding noncore items, full year adjusted net income was $2.4 billion and adjusted EPS was $5.42 per share, up 13% versus $4.78 in the prior year.
- Television segment expenses increased 27%, primarily reflecting higher sports programming rights amortization and production costs led by the broadcast of the World Cup.
- Excluding noncore items, quarterly adjusted net income was $765 million and adjusted EPS was $1.79, up 41% compared to $1.27 in the prior year period.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | positive | realized | +6.9% | Fiscal 2026 EBITDA grew 8% to a record $3.9 billion. |
| net_income | positive | realized | +6.6% | Excluding noncore items, full year adjusted net income was $2.4 billion and adjusted EPS was $5.42 per share, up 13% versus $4.78 in the… |
| operating_income | positive | realized | +6.1% | Fiscal fourth quarter EBITDA improved 27% to $1.2 billion. |
| net_income | positive | realized | +5.3% | Excluding noncore items, quarterly adjusted net income was $765 million and adjusted EPS was $1.79, up 41% compared to $1.27 in the prior… |
| operating_income | negative | realized | — | Quarterly expenses increased 28%, driven by higher sports programming rights amortization and production costs led by the World Cup as… |
| operating_income | negative | realized | — | Revenue growth at the Cable segment was more than offset by a 20% increase in expenses, primarily attributable to an increase in sports… |
| operating_income | negative | realized | — | Total expenses increased 4% in fiscal 2026, mainly due to World Cup rights and production costs, FOX One first year costs and higher… |
| operating_income | negative | realized | — | Television segment expenses increased 27%, primarily reflecting higher sports programming rights amortization and production costs led by… |