Fox Earnings Jump on World Cup Ad Surge

Fox Corporation (Nasdaq: FOXA, FOX) reported record fiscal 2026 results on Aug. 6, 2026, as earnings surged on World Cup-driven advertising and streaming gains. These factors lifted quarterly revenue and ad sales, boosting adjusted EBITDA and prompting management to flag momentum into fiscal 2027.

Quarter and Full-Year Results

For the twelve months ended June 30, 2026, Fox posted full-year revenue of $17.13 billion, net income of $1.73 billion, and adjusted EBITDA of $3.91 billion, all company records. In the fourth quarter, total revenue rose 28% year over year to $4.21 billion. Adjusted EBITDA increased 27% to $1.20 billion, while GAAP net income was $696 million. GAAP earnings per share (EPS) were $1.61, and adjusted EPS was $1.79.

Advertising revenue jumped 78% to $1.92 billion, driven by the World Cup and digital growth at Tubi. Distribution revenue reached $2.03 billion, led by a 7% increase in cable network programming, while content and other revenue totaled $262 million, down slightly due to the timing of sports sublicensing. Free cash flow for the quarter was $726 million, influenced by the timing of World Cup-related payments and receivables.

Television operations accounted for much of the quarterly gain. Television revenue rose 45% to $2.48 billion, and segment EBITDA more than doubled to $705 million from $308 million a year earlier. Television advertising more than doubled, supported by World Cup coverage, digital viewing at Tubi, and increased political advertising at FOX Television Stations. Television distribution revenue remained essentially flat.

Cable network programming revenue increased 9% to $1.67 billion, while segment EBITDA declined slightly to $728 million from $747 million as higher sports rights amortization and production costs offset revenue gains. Cable advertising grew 22%, and distribution revenue rose 7%, with contractual price increases outpacing subscriber declines.

World Cup and Streaming Gains

The surge in advertising revenue was primarily driven by Fox’s exclusive U.S. English-language broadcast of the 2026 FIFA Men’s World Cup and digital audience growth at Tubi. Across Fox broadcast, FS1, and Tubi, 128.4 million viewers watched some portion of the tournament. The 104 matches averaged 7.7 million viewers, a 116% increase from 2022, with 11 matches exceeding 15 million viewers. The final drew nearly 39 million viewers across Fox platforms.

Fox and Telemundo combined generated $1.2 billion in World Cup ad sales, with Fox accounting for $835.2 million, including $166.2 million from streaming—a rise of 839% compared to 2022. FIFA-mandated hydration breaks created additional ad inventory, which Fox called a meaningful incremental revenue driver. Selected 30-second ad spots reportedly sold for $200,000 to $750,000 depending on the matchup.

Tubi’s streaming growth was central to the digital story. Management said Tubi was EBITDA-positive every quarter of fiscal 2026 and posted its highest-revenue quarter, with revenue up 35% and monthly active users reaching 110 million. Tubi’s World Cup hub attracted more than 20 million viewers, and two early-round matches generated two of the platform’s highest traffic days.

FOX One, launched about a year ago, contributed to distribution revenue growth and added incremental subscribers with churn below expectations. World Cup coverage helped attract new customers and improve retention.

Profitability and Outlook

Adjusted EBITDA margin for the quarter was about 28.4%, slightly lower year over year as higher World Cup programming rights amortization, production costs, and FOX One launch expenses offset some margin gains. The cable network programming segment’s EBITDA declined despite higher revenue for similar reasons.

Lachlan Murdoch, executive chair and CEO, said, “Fiscal 2026 was an exceptional year for FOX, capped by our broadcast of a remarkable FIFA Men’s World Cup.” Management expects continued momentum into fiscal 2027, citing spillover World Cup ad commitments, anticipated political advertising tailwinds, and ongoing investments in Tubi and FOX One.